What is Solar Net Metering in India and Its Advantages?

 

When it comes to residential or commercial rooftop solar panel installation, there are several things that a consumer must take into consideration. Net metering is one of those important concepts as it can benefit both solar energy users and the grid.

In this post, you’ll dive deep into the solar net metering concept in India and associated things.   

What is Solar Net Metering and its Working?

Solar Net Metering, NEM, or net energy metering is a utility/electricity billing mechanism that allows residential and commercial users to get credits for the unit of electricity they send back to the main grid.

In simple terms, when solar panels generate electricity more than required, the user can send the surplus electricity back to the grid. This helps solar energy consumers pay just for the net power used, thereby enjoying a good cost saving through solar power.

Now that you know what net metering policy is, let’s learn about how it works.

Solar panels work more efficiently during the day when they absorb enough sunlight directly without any obstacles or shading. This allows rooftop solar panels to produce a lot of electricity which can either be stored in expensive solar batteries or go useless.

With the solar net metering policy, the excess solar energy generated through solar panels can be sent to the grid in exchange for credit. Your electricity company will pay for the units of power you export to the grid. You will be compensated through the implementation of power credits to your utility bill for each kWh of solar electricity you transfer to the grid.

You can use your net metering credits to get energy back when your solar panel is not producing enough electricity. This way, you can get the complete economic value of the entire solar electricity generated by your solar panels.

How Could You Benefit with Net Metering Policy?

Net metering can offer you several monetary benefits and other advantages. That’s why most solar energy users consider the net metering billing mechanism before investing in solar energy.

1.       The major benefit of net metering is the reduction in electricity bills. It can save a large amount of money over your solar energy system lifespan or possibly reduce all the electricity costs in billing except for certain fixed charges.

2.       Net metering prevents the need for expensive solar battery storage by using a grid as a virtual solar battery. With net metering, all extra produced energy can be sent to the grid and get in return whenever required.

3.       The solar net metering concept reduces rooftop solar system maintenance and replacement costs largely rather than using a non-grid system.

4.       Communities providing complete retail net metering have comparatively shorter payback periods. It will save electricity bills, enabling users to recoup investment costs promptly.

Conclusion

A net metering policy helps solar energy users in getting the most out of their solar investment. To know the cost and process of application and installation of net metering in India, contact your chosen installation company.