If you have ever thought about investing in solar energy, you might have come across the term’ net metering’. When you install a grid connected solar system on your roof, you cannot match your energy consumption to when the sun is shining. Your panels will likely generate more electricity than you require during the day, just as you will continue consuming energy after the sun goes down. One solution to this imbalance is net metering.
Net metering is a mechanism that enables commercial or residential users who generate their own energy using solar panels or photovoltaic systems to export excess energy back to the grid.
An off-grid system is typically self-contained, whereas grid connected solar systems are linked to the main utility grid and employ the net metering policy. Net metering allows system owners to earn additional revenue by selling excess power to the grid while also compensating for shortfalls through the grid. If the amount of electricity generated exceeds the energy consumed, the owner is reimbursed for the difference.
If the amount of energy consumed exceeds the amount of energy generated, it is imported from the utility grid, and the owner only pays the net amount. Net metering was introduced in India as an initiative to make renewable energy more affordable and accessible, with regulations varying by state.
How Does Net Metering Work?
You can sell the excess back to your grid company for credits that balance the cost of your energy consumption. When the weather is clear and sunny, you may generate more solar power than is required to power your home, but when it is cloudy or rainy, you may see less energy than is required to power your home. You can use the credit from selling your excess energy back to the utility grid to cover the cost of any electricity you need to use. You end up only paying for the difference between how much you sold and how much you used.
Billing Method
The owner is billed for the “net” electricity used, which is the difference between the total energy produced by the system and the total energy consumed. The difference between surplus electricity transferred back to the grid and the total power consumed by the owner is accounted for by net metering. As a result, surplus energy generates revenue, while energy shortages are met by the grid. Each state may have different rules regarding the type of net meter used to record power.
Advantages of Net Metering
1. Extra Monetary Credit
If the amount of energy produced by the owner’s system exceeds the amount of energy consumed, the owner will receive additional credits and revenue.
2. Eliminates the need for a backup generator and battery storage
While using net metering, you would not need battery storage systems. This is because the extra power is stored by the grid itself. In fact, it also terminates the need for pricey generators since the utility grid also acts as a backup generator.
3. Reduce Electricity Bills
If you have net metering, you would only be paying the net amount of power that you consume. That is to say, in case you generate more electricity than you consume, your utility company will end up paying you for the extra power that you sent to the grid.
4. Negligible Environmental Impact
When commercial or residential spaces use net metering to return extra power to the grid, it reduces their reliability on non-renewable sources like fossil fuels. Consequently, greatly contributes to the fight against climate change.
5. Requires Minimal Maintenance
It is generally the battery and generator that requires constant care. However, with net metering, you would not require these components. Therefore, it saves you a substantial amount of time as well as money.
So, here you have it. This is everything you need to know about net metering. Grid connected solar rooftop systems are needed to employ net metering and benefit from the multiple advantages mentioned above. We at Luminous have a range of grid connected solar rooftop systems that can be connected to the grid and allow you to use solar energy efficiently. To know more about our solar panel systems, you can give us a missed call at 99902 99902. You can also visit our e-shop to explore our products.
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