Net metering is a special metering and billing agreement between power utilities and their consumers, which facilitates the connection of renewable energy-generating systems to the discoms’ network. It allows consumers to export surplus power to the grid and helps reduce their electricity bills.
The most important benefit of net metering to consumers is the reduction in the amount spent each year on energy. The consumer can even make money if the production is more than the consumption and the electricity distribution utility company pays the consumer for that excess energy at a predefined rate.
The other benefits of net metering are:
- The system is easy to install. It enables consumers to get real value for the energy they produce, without having to install an expensive battery storage system.
- Banking of surplus solar with the grid through export
- The power generated from the solar system can be utilised during the peak hours which results in decongestion of the grid.
- It encourages consumers to play an active role in alternative energy production, which both protects the environment and helps preserve natural energy resources