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What is Net Metering and How it Works?

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The concept of Net Metering holds importance because it works as an incentive for both – the supplier and the consumer. Through this process, Grid receives surplus power generated by the consumer. Other consumers connected to the grid receive this excess power for their consumption. This process of sending the excess energy to the power grid is commonly referred to as Net Metering all over the globe. The solar panel owners first consume the electricity that is being produced by the solar panel. Excess energy produced is then pushed back to the power grid. Other houses connected to the grid, use this power for their consumption.

With the constant rise in energy prices, it is a wise decision to switch to Solar Rooftop panel at your home, office or anywhere the sunlight falls. The net metering system was initiated in India as a course of action to make distributed renewable energy more accessible and economical for consumers across India. It works by considering the difference between the export of power generated by the consumer’s rooftop panel, and the import of power from distribution companies. Consumers then compensated for the surplus power generated at a price determined by their respective state net metering policy. The Net Metering system is the most common solar metering system in India. In this metering system, the distribution panel and solar inverter are mounted together for converting the DC to the AC. Additional to that a bi-directional meter to measure the exported and imported electricity.

 

Let us explain to you how the Net Metering works:

Your Solar Installation will generate the most power during the daytime. This is the time when your home uses less amount of power. Other homes connected to the grid use this excess energy.. In return, You receive a credit for the power that you share with the grid. In fact, your Bi-directional meter will show reverse reading to reflect your contribution.

Related Read: 7 Reasons Why Solar Panel is Good for Your Home

During the evening, panels create no power and your home consumes a considerable amount of power. At this time, your home will need to get the energy from the power grid lines. The installed Bi-directional (Net) meter moves forward again, counting the amount of electricity in which your home is consuming. At the end of the month, you receive a credit if you contribute more energy to the grid than your consumption.

This scenario is more common in the case of warmer months, for instance in summer where the longer days and higher solar insolation levels let your solar installation for producing more power. For those months where your home consumes more electricity from the power grid than you contribute, you will only pay the net difference amount between what you contribute to the power grid and what your house has consumed. This is how the Net Metering system works.

Interested in reducing your electricity bills?

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