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What is Net Metering and How Does it Work?

August 29, 2019by absrenewpower

net metering

A common question asked by customers to solar system integrators is, what is net metering and how is it beneficial? To answer this, our article will explain net metering, its benefits and talk about how it operates.

What is Net Metering?

A net meter or bi-directional meter is a component installed in an on-grid or hybrid solar PV system that allows the consumer to send energy to the utility grid (typically known as discoms). It measures the units of energy used from the grid in our houses/ factories and sent to the grid from the solar PV system. This helps to determine the consumers’ usage and generate a bill accordingly.

How Does it Work?

Net metering works in a simple way. When surplus electricity from the solar installation is supplied to the grid, the meter runs backward to record credits. Similarly, when electricity is utilized from the grid, the meter runs forward, to measure the units purchased from the utility grid. This way the meter measures the net amount of units bought/sold by the grid.

For example, solar electricity achieves peak generation during the afternoons and if the consumption is less during that time, the excess energy generated would get wasted if there is no backup. On installing a net meter, it sells the excess energy to the grid and measures the units accordingly to keep a record.

Similarly, an on-grid solar PV system is unable to generate the required amount of energy during nights, the net meter borrows energy from the grid and maintains a record of it. At the end of the billing cycle, the utility companies inspect the data recorded in the net meter to generate your monthly utility bill.

Benefits of Net Metering

  • You can sell your excess solar electricity for credits.
  • You can always rely on the grid if your solar PV system fails to generate the required energy.
  • Sends excess energy to the grid, eliminating the requirement of a battery backup and generator that saves setup and maintenance costs.
  • Maintenance-free component.

How to Available Net Metering for Your Solar Power Plant?

Solar system integrators usually help customers with all the necessary documentation and information required to overcome the registration process for a bi-directional meter. Request your Solar EPC Company to provide all the necessary information for net metering.

Net Metering takes us a step closer towards reduced energy dependence and the shared utility of electricity. On-Grid Solar Power Plants help build an eco-system that can be sustainable and reduce the overall expenditure spent on purchasing electricity from discoms. To know more about net metering and on-grid solar, drop in an enquiry now.