We all read about homeowners and farmers who own a wind turbine or solar panels. They get their electricity from clean, renewable energy and pay less to their utilities, munis, or co-ops. But you don’t always have to go completely off the electric grid. Some states have a program called net metering.

Net metering kicks in when a home’s renewable energy system produces enough electricity for the household or farm, and the extra is pushed back onto the power grid (and yes, the meter actually runs backwards). The homeowner is selling power back to the utility at retail or wholesale rates. The programs vary by state, but they basically allow people to be mini power producers.

Over 40 states already have net metering programs, and federal legislation requires all states to consider adopting standards by 2008. The paperwork can be long, the cost is around $8,000 and many renewable energy owners don’t even know the program exists. California residents are the most likely to take advantage of net metering laws; of those who qualify, about 86 percent use the program.

Some states like New Jersey and California allow businesses to use net metering, too. As the demand for power increases along with the policy push for clean, renewable energy, utilities may come to rely on thousands of small power producers and large corporate producers to ease the strain on the grid.

Go here to see if your state has net metering laws.

Associated Press