Net Metering - Frequently Asked Questions

What is net metering?

Net metering allows customers to connect their on-site generators of electricity (solar or wind) to the power grid. Special meters that can run both forward and backward give customers credit for the electricity they feed into the grid. The arrows in this illustration show that electricity can flow through the meter in both directions.


"Net" means the meter records the difference between the electricity the customer is using vs. the electricity the customer's generator is producing. Unlike typical homes, MGE no longer knows the gross electric use, only the difference between consumption and production.

How does the meter record this difference?

Every 15 minutes, the meter records the net difference between the electricity being used by the home and the electricity being produced by the home. If production exceeds consumption for that 15-minute period, the customer is credited at the appropriate retail rate for electricity.

  • PG-2 = The default rate available to MGE electric customers with their own electric generation facilities with the capability of generating 100 kilowatts (kW) or less of electricity.

How can I tell which direction the power is flowing on my meter? 

The Watt Disk Emulator on your AMI Two Direction meter shows the direction of power flow.   

Power flow to customer

If the power is flowing to the customer, the Watt Disk Emulator will show the following progression (power flowing to the right).

Power flow to MGE

If the power is flowing to MGE, the Watt Disk Emulator will show the following progression (power flowing to the left).

You may also check your IN/OUT kWh reads on your meter. IN is kWh that have been delivered to you; OUT is kWh delivered to MGE. 

What is a Net Seller?

If over the most recent 12-month period the amount of electricity generated from a home system sent to MGE's grid exceeds the amount of electricity used, the customer is a net seller. Net sellers are credited at a different rate (PG-1).

How does net metering appear on my bill?

Select the numbers highlighted below to learn more about how they are calculated:

Net Metering Sample Bill
12 3

Is my energy production taxed?

The energy production is a nontaxable item since it is considered purchased power.

Who should I contact for more questions?

Call our Distributed Generation Hotline at (608) 252-4783 or email