Net metering is a special metering and billing arrangement between electric utilities or cooperative and their customers who own, generally small, renewable energy generation sources. Examples may include photovoltaic solar panels or wind turbines. Under net metering agreements, excess electricity produced by the residential or business customer's generation source spins the existing electric meter backwards or a second meter may be installed to record the amount of energy sent to the electric grid. This effectively crates energy credits which will be used during the current billing period to offset energy the customer acquires from the utility or cooperative during periods when the customer's generation source is not producing enough energy to meet the customer's needs.
The Oklahoma Administrative Code (OAC) 165:35-29 and 165:40 address the parallel operation of generation facilities with the local electric utility or cooperative and the customers who are owners of small power generating systems. These rules specifically deal with interconnection agreements and purchase rates for excess energy.