In this system, you have a single new bi-directional meter. When you consume electricity from the grid (or your electricity supply), the meter readings will move forward; but, when you produce electricity and send it to the grid, the meter readings shall move backward. Suppose you use 10 units of electricity in a day and produce 8 units, your meter will show a reading of 2 units. And if you use 10 units of electricity and produce 12 units, then your meter will show -2 units. Your bill at the end of month will be based on net units consumed/produced. If you generate extra electricity in any month, the surplus is carried over to the next month and netted. At the end of a year, if your total production is more that what you consumed, then you will get paid for the next surplus electricity produced at the cost decided by your state’s electricity regulatory commission.
How does it work?
- Under Net Metering policy electric customers generate their own electricity from a solar photovoltaic (PV) system installed on the roof top of the building. The output of the panels (DC electricity) is connected to the power conditioning unit / inverter which converts DC Power to AC Power.
- The inverter output is connected to the control panel / distribution board of the building to utilize the power.
- The inverter synchronizes with the grid to power the loads with preference of consuming solar power first.
- The power generated in excess of the owner’s electricity consumption is fed into the grid through a bi-directional energy meter capable of registering both import and export of electricity.
- The arrangement of a net metering system utilizes the same service line for excess power injection into the grid which is already being used by the consumer for drawl of power from utility network.
- Net-Metering allows households to generate electricity and set off the power produced against the power used from the grid and consumer pays only for the “net” number of units (difference between import and export energy) used each month.
- In the event the consumer produces power in excess of his usage in a particular month, the customer’s energy charge becomes zero and the remaining units are credited and carried forward to the following month.
- Under the Net Metering Policy, Rooftop Solar Power Projects of capacity ranging from 1 KW to 10 MW can be installed
- The solar power generated in excess of the owner's electricity consumption is fed to the grid through a bi-directional energy meter which is capable of registering both import and export of electricity.