Fundamentals of Net Metering

What is Net Metering ??

    

Net Metering is an agreement signed by the system owner and utility which allows the owner to buy or sell the energy from utility using Net Meter which tracks energy exchange.

An Example

During early morning or evening hours when there is no sun, energy required to fulfill the load is taken from the utility grid and net-meter moves forward. While in day time, during peak sun hours the load is less and energy generated is in excess. This excess energy is fed back to the grid and net-meter moves backward.

NOTE- Electricity generated needs to be fed in real time as electricity travels with speed of light.

Advantage of using Net Meter

1) Financial Benefits - Per unit cost of excess energy generated is paid to the user by utility.

2) No need of battery backup - Excess energy from PV panels need not to be stored in battery as it can be fed directly to grid. Thus there is no battery capital cost and maintenance cost.

Feasibility of Net Metering System

Usually DISCOM that are active in your area do a feasibility check of your system under certain guidelines such as - The total capacity of solar plant to be installed should not be more than 30% capacity of the distribution transformer.

      Other guidelines vary as  per local DISCOM's criteria.