Grid-tied solar systems
We’ve already talked a bit about grid-tied solar, also called utility-interactive. The vast majority of residential and business solar systems in the United States are grid-tied, in part because it’s often not practical or necessary to cover your electricity demand day and night, day in and day out, with solar and batteries. Grid-tied systems let you draw grid power whenever your demand exceeds what your solar system can provide.
In addition, grid-tied systems are usually designed to save you money by offsetting your total annual electricity usage. This is where net energy metering (NEM) plays a big role.
Many states in the U.S. have some form of NEM that allows your solar system to send excess solar production back to the electrical grid. In turn, you receive bill credits that are applied either monthly or at the end of the year during a process called “true-up.” So, essentially, your utility is buying back your excess power production so that none of it's wasted, helping you get a faster return on your solar investment.
At the end of the year, if your system produced more energy than you consumed for the year, you may get some money back. If you drew more than you consumed, you’ll owe more to your utility. Ideally, at the least, you'll break even. But even if you do owe something in the end, it will be significantly less than you'd pay for energy without solar.