In general, a net-zero energy building produces as much energy as it uses over the course of a year. Net-zero energy buildings are very energy efficient. The remaining low energy needs are typically met with on-site renewable energy.

The U.S. Department of Energy has researched this concept which combines state-of-the-art, energy-efficient construction and appliances with commercially available renewable energy systems that can result in net-zero energy consumption. A Zero Energy Home (ZEH), like most houses, is connected to the utility grid, but can be designed and constructed to produce as much energy as it consumes on an annual basis.

Like most homes, the ZEH design uses electricity from the electric utility grid. However unlike most homes, the ZEH puts electrical energy back into the grid. Ideally, the amount of electricity put back into the grid equals the amount used from the grid, on an annual basis. This means that during any particular month, the home may either have used more grid electricity than it put back or it may have put an excess of electricity back onto the grid. The goal is that at the end of a year, the electricity taken from the utility grid is offset by the solar electricity output.