What is net-metering and how it works?

What is net-metering and how it works?

Solar net metering is a policy mechanism that allows solar energy system owners to offset their electricity costs by feeding excess solar power back into the grid. In India, net metering policies vary slightly across states, but the underlying principles remain consistent. Here is a general overview of how solar net metering works in India:

1. Installing a Solar Power System: To participate in net metering, you need to install a solar power system on your property, typically on rooftops or open spaces with adequate sunlight exposure. The system consists of solar panels, inverters, mounting structures, and electrical connections.

2. Connecting to the Grid: Once your solar power system is installed, it needs to be connected to the local electricity grid. You will need to obtain necessary approvals and permissions from the distribution company (DISCOM) or the relevant electricity regulatory body.

3. Bidirectional Energy Meter: A bidirectional energy meter is installed to measure the electricity flowing in both directions—between your solar power system and the grid. This meter records the energy you consume from the grid and the excess energy you export to the grid.

4. Energy Consumption and Generation: During daylight hours, your solar panels generate electricity. This electricity can be used to power your household appliances and meet your immediate energy needs. If your solar power system generates more electricity than you consume, the excess is exported to the grid.

5. Net Metering Calculation: The bidirectional energy meter records the net difference between the electricity you consume from the grid and the electricity you export to the grid. At the end of each billing cycle (typically monthly), the net energy consumption or generation is calculated.

6. Billing and Settlement: Depending on the net metering policy of your state, there are two possible scenarios:

   a. Surplus Energy Credit: If your solar power system generates more electricity than you consume during a billing cycle, the excess energy is credited to your account. This surplus energy credit is carried forward to the next billing cycle, reducing your future electricity bills.

   b. Energy Charges: If your solar power system does not generate enough electricity to meet your consumption during a billing cycle, you will be billed for the additional energy consumed from the grid at the prevailing electricity tariff rates.

It's important to note that specific regulations, policies, and net metering benefits may differ among different states in India. Therefore, it is advisable to consult with your local renewable energy authority to understand the specific guidelines and procedures applicable to your location.

By Ashish Neelaiah

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