What is it?
With Net Metering, excess electricity produced by a renewable energy source, such as a small wind turbine or solar panels, is measured with a special meter. This meter has two registers: one to measure the inflow from KCP&L and one to measure the outflow from the customer.
All energy the customer produces in excess of their immediate need enters back into the grid. The excess generation is used to offset an equal amount of power supplied by KCP&L in the billing period and the customer is billed for the "net" kWh. Any excess generation greater than the amount of power supplied by KCP&L in the billing period is then credited to the customer's bill at KCP&L's avoided cost, which is less than retail since it reflects only energy and not the generation, transmission, distribution and administrative costs included in retail rates.