Net metering refers to a mechanism whereby solar energy exported to the grid from grid-tied rooftop solar PV system of a prosumer is deducted from the energy imported from the grid in units (kilowatt-hours) to arrive at the net imported / exported energy

How does Net Metering work?

In order to be eligible for net metering, the consumer must be interconnected with the grid. A meter measures the net difference between the amount of energy your solar panel system produces and the amount of energy used in a billing period. During the daytime when the solar energy is being generated, your meter stores extra energy not being used on-site. At night, when you draw on conventional grid power your meter spins forward to collect the surplus energy that was produced earlier. At the end of the billing cycle, if the  has produced more energy than you have used, you might be able to sell the net electricity back to the utility company at a profit.

 

What are the benefits?

There are no brownie points to guess the most basic benefit of net metering which is a drastic reduction on your yearly electricity bills. However, there are many other benefits that are stated below that even you can draw if you get aware about them:

• Reduced demand on the grid mainly during high consumption periods.
• Encourage active participation in alternative energy production.
• Monetize electricity produced through the  without having to install second meter and a battery storage system.
• Reduced cost of operations and maintenance of a generator set.