What is Net Metering?

By April 15, 2019 No Comments

Net Metering is a metering arrangement in which energy generated by the rooftop system is first used internally and excess electricity is exported to the grid through a bi-directional meter. The bill received by consumer is net of electricity imported from the grid minus electricity exported to the grid.

Net Metering allows surplus generation to be consumed at a later time when demand is higher than solar generation. Example- Households that generate during the day can consume during the night; offices which generate over weekends can consume over the weekdays, End users gain from savings on electricity bills.

Broadly, two meters are used in a Net Metering arrangement;

  • Meter 1: Bidirectional net meter measuring electricity consumption and export.
  • Meter 2: Solar meter for measuring solar electricity generation.

Working of Net Metering can be carried out in 2 cases:

  • Case 1: Customer pays for 1kW net consumption while 2Kw is met from the Net Metered Solar Rooftop System.
  • Case 2: Customer consumes 3Kw of 5Kw generated by the Net Metered system while surplus 2Kw is banked with the DISCOM, which provides credit for the same.

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