Net Metering
Are you looking to install a residential solar power plant to reduce your electricity bill? Then you must know about the net metering or net energy metering system. This device keeps a real-time record of your electricity import and export and net electricity consumption.
Here you will learn about the concept of net metering with its advantages, application process, documents required, installation process, etc.
Solar Net Metering
What is Net Metering?
Net Metering or Net Energy Metering (NEM) is an electricity billing mechanism that helps to calculate the electricity bill of those customers who generate electricity from their solar power system.
The net metering process allows you to buy and sell electric units at the same price. If you are looking for an on-grid or hybrid solar power plant, you must install this device to calculate your electricity bill.
How Does a Net Metering Solar System Work?
The net metering system works only for on-grid solar power plants. This system is not available in the regular metre. Therefore, net metering requires a special metre called, ‘Net Metre’.
This net metre is a bi-directional metre which keeps the account of both the import of electricity from the grid and the export of your solar panel-generated electricity to the grid.
In other words, it calculates how many units of electricity your home has consumed and how many units your solar system has supplied to the power grids.
In a net metering system, your final electricity bill will be the difference between the electricity consumed and the electricity supplied.
Electricity Bill Calculation Process in Net Metering
Formula required
The billing calculation formula is very simple. Here is the formula to calculate the electricity bill of a consumer having an on-grid solar power plant:
Net Electricity Consumption = (Export of Solar Generated Electricity – Import from Grid Electricity)
Here is an example of the electricity bill calculation process in net metering:
Total electricity consumed in a billing cycle: 250 units
Total electricity exported in a billing cycle: 200 units
Net units consumed in the billing cycle: (250 – 200) = 50 units
Final electricity bill = Rs. (50 x cost of 1 unit)
What Are the Advantages of Net Metering?
At Das Energie Private Limited, we provide you with three different types of solar net metering models that are beneficial for you. Let us take a closer look at these options and see how they can work for you
Electricity Bill Reduction
The net metre is a bi-directional metre which calculates both side transactions. It calculates the total electricity imported from power grids and the total electricity exported to grids. By calculating this difference, your DISCOM will generate your final electricity bill.
No Battery Requirement
In an off-grid solar plant, you need to buy solar batteries which are costly and require complex maintenance. However, in an on-grid system, the net meter replaces the requirements of solar batteries and supplies the extra electricity to the grids.
No Maintenance
Compared to solar batteries, a net meter requires low maintenance in terms of effort and cost. The net metre requires an installation fee but it does not require much maintenance hassles and can work for a long time.
Are you interested in installing an on-grid solar power plant?- Before choosing a vendor it is important to get solar quotes from different solar system installers. Contact us today for solar quotes and get multiple quotes within 2 working days from our registered solar installation partners.
How to Apply for Net Metering in India
These are the steps to apply for net metering in India:
Step 1
You have to request your DISCOM or electricity distributing company for the installation of the solar power plant. A net meter is only allowed with an on-grid solar power plant.
Step 2
To verify your request, a DISCOM executive will visit the location within 3 working days. After that, you will get the approval within the next 15 days.
Step 3
Now, you have to complete the net metering application online from the official site of the DISCOM.
Step 4
Once the solar system set-up is complete, you have to sign a net metering contract. With this, you must submit the solar system certificate, property papers (for ownership confirmation), and installation certificate.
Step 5
DISCOM officials will visit your site and you have to clear the net metering installation fee. Once you complete the payment on or after verification, they will install the net metre.
Checklist for Net Metering Approval
These are the documents required for net metering approval:
- Online or offline application form
- Property ownership proof
- ID proof
- Copy of your last electricity bill
- Photograph of applicant
- Project report of your solar power plant
Note- You may have to submit other documents if asked by the authority
If you contact us for solar panel installation, our solar installers will help you from A-Z to complete the net metering installation process. Complete your solar panel installation with Das Energie.
Process of Net Metering Installation
At first, the DISCOM officials visit your location and complete further steps. They will fill up form 15 with the metre number and consumer details.
DISCOM officials will replace your old metre with the new metre. The old metre will be transferred into a new metre box.
After that, they will connect it with the solar power plant. Once the system is successfully connected it will start generating electricity.
Generally, the net metre is installed within 7 days after the Solar Power plant installation. However, it may take more time if the net metre is out of stock.
Difference Between Net Metering and Gross Metering
In net metering, the cost of importing and exporting electricity is considered the same. However, in gross metering the import electricity and the export electricity cost are different.
Follow these examples to learn about electricity bill calculation in net metering and gross metering:
a. Bill Calculation in Net Metering:
Units imported = 100 units
Units exported = 90 units
Import Electricity Cost = Export Electricity Cost = 8 Rs.
Final Bill = Rs. (100 – 90) x 8 = 10 x 8 = Rs. 80
b. Bill Calculation in Gross Metering:
Units imported = 100 units
Units exported = 90 units
Import Electricity Cost = 8 Rs
Export Electricity Cost = 3.5 Rs
Final Bill = Rs. (100 x 8) – (90 x 3.5) = Rs. (800 – 315) = Rs. 485
Therefore, the net metering process is more profitable for you.
FAQs about Net Metering
The concept of net metering and net billing is almost the same. In the net billing system, the value of exported electricity is considered lower than the imported electricity. In net metering, these costs remain the same.
With a net metering system, a consumer can reduce his/her electricity bill based on the electricity transferred to power grids. Your final bill will be the difference between the electricity consumed and the electricity exported.
For a consumer, the net metering is better than the gross metering system. On the other hand, the gross metering system is beneficial for electricity suppliers.
The cost of a net metre is very high. This system helps to reduce the power requirements only in the daytime as it cannot work at night.
Generally, a consumer can save up to 95% of the electricity bill every month with the billing mechanism of net metering.
