Businesses and homeowners generating their own electricity using solar may have some surplus energy that they can sell by feeding it into the grid. With net metering, this amount is offset against their current bill from their electricity provider. As solar power becomes increasingly popular, more and more customers are likely to benefit from the concept of net metering which is great for households and businesses, as well as the environment at large. Net metering is such an attractive concept, solar EPC companies in Mumbai and beyond are receiving endless queries about it. So in this blog, let’s simply explain what it is all about, and how it can benefit you.
What is net metering?
Net metering is a billing system wherein users of solar energy are credited for the electricity that they add to the grid. A user may not use the entire amount of electricity generated by the solar power system, especially during the day. If the house is net-metered, the solar net meter will run backward to provide credit for the electricity used at night or other peak usage periods. Customers are charged only for the “net” usage, and the exported electricity is used to serve nearby customers.
How net metering works
The solar power system of a customer is connected to the electricity grid through the main service panel and the power meter. When the solar system generates surplus electricity, it is transferred to the main grid through a bi-directional solar net meter. Sending out electricity reverses the meter from its normal direction.
The simple billing mechanism of net metering is that customer only pays the bill for the “net” electricity consumed, that is, the difference between the power purchased from the electricity provider and the power returned to the grid.
How it helps monetarily
Net metering is a great way to put a financial value on the surplus electricity generated by your solar power system.
- It brings down consumers’ cost of energy because the value of the surplus power exported is offset against that consumed. This can slash consumers’ electricity bills significantly.
- No investment is required in an expensive battery bank. This is because net metering allows consumers to use the grid itself as a huge power bank that stores surplus power. A small backup should be enough for power outages.
- The main components of a net metering system are solar modules and an inverter. Both components are highly easy and inexpensive to maintain, as there are no moving parts and hence little wear and tear. Modules in fact have a pretty long warranty period and are manufactured from semiconductor material. These are mostly protected by tempered glass.
- With net metering, you can capture vital information like the consumption and export of electricity. This can help you understand your usage patterns and select just the right plans from your electricity provider. This can make your consumption more streamlined, efficient and cost-effective.
For further information on net metering or any solar project, get in touch with VEMC at 022 43436655 or email us at marketing@vemc.co.in. We are one of the top solar installation company in Mumbai. You can also get in touch with us for solar power installation in Mumbai and beyond, and benefit from our excellent service.