As power is produced by your solar panels, it travels into a power inverter which converts the electricity into a usable form. Your own power needs are met first, and if excess electricity is available, it goes back onto the grid through your Net Energy Meter. This meter keeps track of how much energy the utility owes you in return. If your system is producing less power than what you need, you still have the connection to the grid to draw power as needed, and rather than paying the going rate for it, you use the credits you’ve built up first. This is particularly useful to avoid peak-time rates during those hot summer months.