Net Metering and Why You Need It

Today, thanks to adverse economic and environmental conditions, we’re constantly on the lookout for cheaper, more sustainable alternatives for many things. Electricity generation is one such thing. With more and more people switching to solar electricity, many financial models and billing mechanisms have been introduced to significantly enhance the cost-effectiveness of solar models. Long gone are the days where we’d complain about unreasonably high light bills!

Solar net metering

Solar net metering is a popular billing mechanism among solar energy users. It works in a grid-tied system, where your solar PV system is connected to the main utility grid. So, if your energy production exceeds your usage, the extra units produced are added to the main grid. These units can then be used by others connected to the grid who need them.

When it comes to billing, users are credited every time they add units to the grid and debited whenever they use energy from the grid. They’re only billed for the net energy used. Usually, users tend to add more to the grid than they consume, e.g. when it’s sunny and limited electricity is required for indoors lighting. This allows them to minimize their electricity bills to as low as zero!

Perks of net metering

  • Save money. That’s the biggest perk of this system. It takes care of bringing down your light bill so that you can spend your hard-earned money on other things you’ve always wanted.
  • Eliminate the need for expensive solar products. By using net metering, your PV system adds excess units produced directly to the utility grid. This means you don’t need expensive solar generators or batteries to use solar energy.
  • Be more environmentally friendly. Net metering makes the best use of a renewable source of energy and adds sustainability to its consumption.
  • Make your neighbourhood self-sustaining. By switching to this system, your entire neighbourhood will use energy generated by its residents. Those with extra energy would provide it to others who need it. This way, power cuts will be a thing of the past!
  • Motivation to save electricity. Unlike in non-renewable forms of energy, you get credited for using lesser energy. This helps instil a conservative mindset when it comes to power consumption as those who add units to the grid are rewarded with significantly lower light bills.


Vijay Engineering and Machinery Company, apart from being one of the best water pump distributors, is also one of the leading solar companies in Mumbai. We offer end-to-end solar solutions and have been streamlining our clients’ journey to a more sustainable future for decades. To know more about our solar solutions, head over to our website or contact us!


Posted in Uncategorized