Net Metering Explained: How You Earn From the Sun

Solar panels can produce more electricity than your home needs during certain parts of the day. Instead of letting that extra energy go unused, a grid-connected solar system can send it to the electricity grid. Net metering is one way utilities account for this energy and adjust the electricity charges based on the applicable rules.

⚡ What Is Net Metering?

Net metering is a billing arrangement for eligible grid-connected solar systems. When your panels produce more electricity than your home is using, the excess can be exported to the grid. When your solar system is not producing enough electricity, you can draw power from the grid as usual.

A bidirectional meter records the electricity flowing in both directions.

⚡ How Does It Work?

During the day, your solar panels generate electricity. Your home uses the power it needs first, while surplus electricity may be sent to the grid.

Later, when your panels produce less power, such as in the evening, your home can draw electricity from the grid. The electricity imported and exported is then accounted for according to the applicable metering and billing rules.

⚡ Can Net Metering Reduce Your Electricity Bill?

It can. By using solar electricity directly and receiving credit or other billing adjustments for eligible electricity exported to the grid, a household may reduce the amount it pays for electricity.

The actual savings depend on factors such as system size, household consumption, electricity tariffs, export rules, and the policy followed by the local distribution company.

⚡ Why Is A Bidirectional Meter Important?

A normal electricity meter generally records electricity flowing into your property. A solar-connected system needs a meter capable of recording both imported and exported electricity.

This allows the utility to track how much electricity your property takes from the grid and how much excess solar electricity it sends back.

⚡ Is Net Metering Available Everywhere?

Not necessarily. Solar metering arrangements and eligibility requirements can vary by state, electricity distribution company, system size, and applicable regulations.

Before installing solar, homeowners should check the latest requirements with their local DISCOM or the relevant government authority.

⚡ Make Your Solar Energy Work For You

Net metering can make rooftop solar more useful by allowing excess electricity to be accounted for through the grid. When combined with a properly sized solar system and sensible electricity usage, it can help homeowners make better use of the energy their panels produce.

The exact financial benefit depends on local rules, so understanding your area's current regulations is an important step before investing in a rooftop solar system.