#benefitsofnetmetering

Net Metering or Net Energy Metering are the same terms. This blog will make clear the direct benefit and the Indian Government’s amendment of Net Energy Metering.

You are already familiar with the various benefits of Solar Energy. However, net metering is a major benefit that users can claim directly. With net metering, you can get credit for the extra clean energy that your solar panels produce and send back to the electric grid.

The Process of Net Metering

Solar panels generate energy that goes to a grid-connect-inverter. The grid-connect-inverter diverts this energy to the utility. Your utility uses the required energy, whereas, unused power is diverted to the power grid.

As you know that most homeowners rely on the grid to power supply their utility at night. Therefore, the grid-connect-inverter takes energy from the power grid and transfers it to the utility. In the whole ‘give and take process’ your meter works as a power bank. It maintains all power-sharing records between grid-connect-inverter and power grid.

How Net Metering Impacts Prosumer

When users consume power grid electricity, they are charged with regular ongoing tariffs. But with net metering, when access or unused energy goes in reverse to the power grid, makes the electric meter run backwards.

Therefore, under the net metering program, the prosumer receives a credit for that grid-bound energy at the same retail rate charged by their utility for any in-bound energy needed. As a result, at the end of the billing period, the utility provides a credit on their electricity bill for the net amount of energy they send back to the power grid.

Also Read: Solve India's Power Crisis with Solar Energy

In India, solar energy prosumers get credit in their electricity bill for unused solar energy. However, net metering credits vary from country to country. Indian Govt capped the limit up to 1MW initially, but later they drastically reduced it to 10 kW. However, in 2021 the government issued a new amendment and changed this limit again.

Net Metering and Latest Amendment to Electricity 2020 Rules

The Ministry of Power (MoP) has finally passed the much-awaited amendment to Electricity 2020 Rules in 2021. This amendment permits net metering to prosumers (Solar energy producers cum consumers) up to 500 kW or sanctioned limit, whichever is less.

How you can make benefit from Net metering?

We understand homeowners can not produce enough power from their solar panels that can yield them a regular income. But they can use excess power supply credits to compensate for their excess usage during summers or on days when they need more power supply than average.