With such a huge demand for energy by the gigantic population of the country, our government continuously lays out programs and initiatives to promote renewable sources of energy. One such initiative is ‘net metering’, which encourages citizens to go for solar.
Net Metering is a system of electricity billing that gives your solar power systems the credit for making electricity. When solar panels produce excess power, with the net metering system, you can sell that power to the grid.
This system only works with grid-tied solar power systems. If the energy generated is more than the amount of energy consumed, the owner gets compensated for the excess amount. And, if the amount of energy consumed is more than the amount of energy generated, the owner only pays for the net amount.
Now let us see how net metering works,
Suppose, you have a grid-tied solar rooftop system which produces 500 units of electricity every month, and you use 600 units from the grid. So, with the net metering system, distribution companies will charge you for (600 – 500) 100 units with rates set by regulatory bodies. Average rate around the country is Rs10/unit. So, your monthly bill would be 10 X 100 =Rs1000
And if you produce 500 units of electricity every month, and use only 400 units, you will be billed for 0 units and paid for excess 100 units of energy produced by your system.
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