Understanding of Net Metering

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Government is providing number of benefits to investors to promote solar industry in India. Net metering is one of the benefits provided by government. Net meter is very useful and encouraging for the household and small scale users to install solar system to power their houses. So, I am writing this article for understanding of Net Metering.

Net metering means the utility company charges you the difference between what you consume from the grid and the electricity you feed in grid. In one Net metering is a meter arrangement where only ‘excess’ of solar electricity is feed into grid is metered. Solar power is first send to the load (appliance, lights etc) and if excess remains, it will be feed into the grid and this amount will be recorded. This will help to reduce bill by two ways:

  1. Using solar energy for the load requirement, will reduce electricity consumption from grid
  2. Payment against the electricity feed into the grid.

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