Advantages Of Net Metering For Indian Customers
One of the most beneficial things that you hear about solar, besides cutting out your electricity bills, is net metering. With solar panel prices falling significantly, Most Indians are taking an interest in the adoption of solar power. India is eager to realize its solar energy goals and the Government finds net metering to be an efficient way to execute the energy targets.
Let us explore everything related to the net metering system in India.
Understanding Net Metering in India
Net metering is the system that provides credits to solar energy owners when they add power to the grid. This is a bill crediting system where the generated on-site energy is fed into the grid and the net metering credits will be shared among the subscribers.
The solar net metering bill mechanism concept not only encourages the consumers to produce energy for their own power consumption requirements but also pays for the excess energy produced by the solar energy systems.
The surplus energy generated by the system is sent to the grid and this mechanism allows for the accounting of units that are exchanged with the grid, both imported and exported by a solar-powered consumer.
How does it work?
Net-metering facilitates electricity unit accounting that is typically exchanged with grids. In this billing mechanism, the common electricity meters which measure only electricity units will be replaced by a bi-directional meter. This meter can measure both supplied as well as exported electricity units.
Net metering in India has been regarded as the way to enable distributed solar energy to be more affordable and accessible to energy customers. This net metering concept is based on the calculation of the difference between the export of power produced by the solar owner and the importing of power from distribution companies (DISCOM).
On considering the extra energy produced by the solar owners, consumers will be only billed for their net energy use. It means as per the net metering policy, you will be given credit for the electricity that you give back to the grid at the same retail price for the electricity that can be taken from the grid.
Net metering policy in India
Net metering is applicable to those customers who have sufficient rooftop space, enough loads at a single location, and high tariffs from their relevant DISCOM. As per this policy, the consumers are offered notable financial incentives to install solar systems and help in reducing their energy bills. Moreover, it also helps in facilitating the growth of the adoption of solar energy.
Based on the latest amendments, the consumers are allowed for loads above 500 kW, or sanctioned load – whichever is lower. Gross metering is also allowed for loads exceeding 500 kW. Rather than using net metering, Prosumers can utilize gross metering and sell the energy to DISCOM. The commission will determine the generic tariff based on the tariff regulation.
The Ministry of New and Renewable Energy has enforced the Solar Net Metering policy to be implemented across India.
Different types of Net metering
Solar Net-metering – In this system, you offset the electricity from the grid with the solar energy that your system generates.
Gross-metering – It is almost similar to net metering, but the only difference is you can’t receive any credits for the extra energy produced by the system.
Feed-in tariff – exported power is compensated at a feed-in tariff. This is comparatively low compared to the utility tariff.
Advantages of Net metering for consumers in India
Reduced power bill
With a net metering system, the consumers pay only for the deficit of consumed power. This is the difference between the power consumption from the household from the grid and the overall power produced from the solar system.
Extra financial credit
If the owner of the solar system generates more amount of energy than he/she consumes for his/her own needs, then it is allowed to avail extra credits and revenue. Solar credits for the owner will serve as a passive income source. When the person requires grid electricity, he can purchase it.
Renewable Energy Adoption
Net metering encourages individuals across the nation to adopt solar power. Net metering incentivizes businesses and individuals to install solar systems and promotes adopting renewable energy resources for a self-energy world.
Low Maintenance Cost
When compared with solar batteries that have high replacement and maintenance costs, a net metering system is truly a cost-effective solution as it does not need a battery storage system.
No requirement for backup systems
There is a direct switch between the energy resources. So, there is no dependency situation for batteries or any backup systems.
Offsets Electricity Consumption
If your solar panels are not generating enough power, you can use the accumulated credits to purchase from the grid and thus lower the price of electricity.
Net Metering – A promising solution
India records transmission losses of 22% to 27% on average. Net-metering possesses the potential of bringing this figure to less than 2%. Reduced transmission loss means more money in the accounts of the Power Distribution Company. Net metering is India’s serious effort towards reducing the dependency on fossil fuel power.
There are immense benefits to net metering for Indian customers. Thanks to Virtual Net Metering, solar power can also now be used by those people who do not own the houses where they live.
