Net Metering Policy

Solar Net Metering Concept

We live in an age where people across the world are becoming increasingly conscious of the environment. Governments are urging and incentivizing companies and citizens to embrace renewable sources of energy. As more and more people are deciding to go green, there are a few terms that have crept into our lexicon. One of them is Net Metering.

What is Net Metering?

Net Metering is a system that gives solar energy owners credits for the power that they add to the grid. When solar panels produce excess power, that power is sent to the grid. And this power can be ‘taken back’ when the solar plants are not functioning – example, during the night. When a unit of solar energy that has been ‘net metered’, the bi-directional electricity meter will run backwards. Customers are billed only for the ‘net’ energy use.

How does Net Metering Work?

The solar power systems are connected to the utility grid via the customers’ main service panel and meter and, when generating more power than is needed at the site, return excess electricity to the grid through the power meter, reversing the meter from its usual direction. Thus, a bi-directional meter is needed to avail net metering. Since the meter works in both directions (i.e. bi-directional meter)– one way to measure power purchased (when on-site demand is greater than on-site power production), and the other way to measure power returned to the grid – the customer pays the “net” of both transactions.

The Way Ahead

While a greener environment is the overall benefit of solar energy, introducing progressive net-metering policies will make the sector grow exponentially. The union government must come up with better ways to implement the policy framework on net-metering so that 40 GW solar target can be reached by 2022.

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