Solar Net Metering and How it works?

The world around us is ever-evolving and with growing environmental concerns we are experiencing change in almost every aspect of our lives. Our lives have become increasingly energy intensive with constant use of smart phones, watches and all other gadgets to every other home appliance that forms a part of our daily lives. Naturally, it lays great importance to the ways we choose to extract energy. With greater impetus on harnessing clean energy resources, governments and organizations are urging corporates and citizens alike to embrace renewable energy and also incentivizing them. As more people make that switch, a few relatively unheard terms often leave people guessing. Speaking of solar, you must have often come across the term “net metering” but probably aren’t sure what it means.


What is net metering?

Net Metering is a billing mechanism that offers residential and business customers credits for the power fed into the grid. When your solar panels produce excess power, that power is sent to the grid. And you can draw back this power during peak load or when the solar plants are not functioning at all; like, during the night-time. For every unit of solar energy fed into the grid, the bi-directional electricity meter (your net-meter) will run backwards.


How net metering works?

Usually, we draw power from the grid to run our house-hold appliances and this is recorded by an energy meter installed by the local utility company. In case of a rooftop solar system, it can often generate more electricity than you consume during daylight hours. So, not only do you use the generated solar energy but the excess energy is also fed back into the grid via the energy meter.


This causes a two-way flow of power. Since your electricity meter needs to keep a track of energy flow in both the directions, a bi-directional meter is needed to avail net metering.


With net metering, you are only billed for the “net” energy used each month, that is, the difference between the energy produced by the solar power system and the energy consumed by the house over the monthly billing period.


When your house or business is net-metered, you’ll see separate units recorded as ‘Import’ and ‘Export’ on your net-meter. Depending upon local policies, you may get a credit to hedge against the electricity you use from the grid when it’s not sunny or during night-time. Any excess energy generated by you gets put back to the grid for your neighbours to use and you receive your due compensation.


Doesn't it sound great? Net metering saves enormously on your electricity bills every year, and that’s a good reason to make the money-saving choice today and switch to solar power sooner rather than later.


If you have made your decision and don't want to delay it any further, or even if you got any queries just contact us and we will ensure that you have all the answers and the savings you are eligible for.

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