What is net metering?
Net metering is an agreement between Owner of Solar Power Plant and Power distribution company to sell excess (called Export of electricity) power generated through Solar or buy deficit Power (called Import of electricity) from distribution company.
In this case one new meter will get installed which records this import and export of electricity,the net of Import and Export of meter readings is called Net Metering.
- You have Installed a 10kw Solar Power Plant and your consumption at you home/industry is 6kwh i.e. 6units per hour and solar is generating 10kw the excess 4kwh i.e. 4units per hour will go to the Grid/Power distribution company and you will get benefit of the same.
- You have Installed a 10kw Solar Power Plant and your consumption at you home/industry is 16kwh i.e. 16units per hour and solar is generating 10kw the deficit of 6kwh i.e. 6units per hour, the system will take it from the Grid/Power distribution company and your electricity bill will be generated based on net of Import and Export of readings.
Here Two questions will come in your mind
1 At what price Govt. or Power distribution company will buy the units from us ?
The answer is, units exported are getting adjusted in the units Imported , hence it would be at the same rate at which you are buying it from your Govt./Power distribution company.
2. What will happen when I am having more consumption then the power generated by Solar? Is the system will trip.?
No, There will not be any system tripping, The system will take automatically balance power in case your consumption is more than the power generated through solar and the same way it will send it to the Grid if you are not using the power generated through Solar like holidays in Industry, you are at outstation, or working during the day hours.
What type of Meters are being used in Net metering:
It is different from State to State. Some states follow the policy of one meter that records the ‘net’ readings. Where few states are using two meters – one meter to record solar energy generation and the second to records the units consumed from the grid.
(Kindly refer your State Solar Policy for more information)
This is note that the Net Metering Policy is only applicable in On Grid Solar Power Plants