What does net billing mean?

Net billing refers to a billing method used primarily in the context of renewable energy systems, where a customer generates their own electricity (often through solar panels) and receives credit for any excess energy they produce and send back to the grid. The customer's utility bill is then calculated by subtracting the credits from their energy consumption, allowing them to pay only for the net amount of electricity used. This system incentivizes energy production and can make renewable energy systems more financially viable for homeowners and businesses.