What is net-metering & why is it required?
Net metering is a billing mechanism that allows homes & businesses that generate solar energy to deliver unused energy back to the grid & receive a credit for the same. If the credit received is higher than the grid-power tariff, it is called “feed-in-tariff” & if the credit is the same as grid tariff, it is more commonly known as net metering.
Net metering was devised as a policy to promote wide-spread adoption of solar because in certain cases such as residential homes, during daytime the solar panels might be generating more energy than the home is consuming, so, under the policy the homeowner is able to export the excess solar power & receive a credit for the same.
A net metering implementation is typically accompanied by the installation of a utility approved bi-directional meter in place of the existing meter. The bi-directional meter records the energy flow happening in both directions, i.e. energy being drawn from the grid into the building & solar energy being exported from the building to the grid and is used to calculate the net billing at the end of the month. Secondly, a long-term Power Purchase Agreement (PPA), typically for a period of 25yrs is signed between the homeowner & the utility company so that the homeowner receives credit for the exported solar power.
Further details regarding the comparison of different types of solar power systems & the challenges around net metering are available here
Other Questions
What kind of electrical appliances can be run on solar?
Do I need permissions from the Utility Company or Regulatory authorities to install a Solar Power System?
How to buy a solar power system online on Glowship.com?
How to buy pre-engineeredsolar kits upto 2kW for your home or office online on Glowship.com?
How does the Glowship solar sizing calculator work?
Going Solar Made Easy
Pre-Engineered Solar Kits
(Solar Capacity <2kW)
Suitable for :
- Electricity Bill Upto
Rs 1,000/mth - Solar Energy Upto
8 Units/day or 240 Units/mth
Customized Solar Rooftop Systems
(Solar Capacity >2kW)
Suitable for :
- Electricity Bill Upto
Rs 15,000/mth - Electricity Bill Reduction
Upto 90%
Solar Retrofit Kits
(For your existing
UPS/Battery System)
Suitable for :
- Inverter Capacities Upto
5.5kVA - Solar Energy upto
20 Units/day or 600 Units/mth