What Is Solar Net Metering And How Does It Work?


Counted amongst one of the most promising, clean and abundant energy forms, solar energy is being used across the globe in various industries. Various homeowners and business owners are using solar energy to meet their electricity needs. Choosing solar over non-renewable energy forms will benefit the users in many ways, such as the use of clean energy, independence from grid electricity, and more. But how exactly do solar energy or solar panels help you in managing financial savings? That’s where solar net metering comes in the picture.

What is solar net metering?

In grid-connected solar panels, your equipment remains connected to the main power grid, which supplies electricity in your home. Choosing this system will allow you to get electricity from the grid if your solar panel is not generating enough power. However, if your solar panel is generating more electricity than your consumption, which usually happens, then you can share the excess power with the main electricity grid. Solar net metering works through a bi-directional meter that keeps a track of total electricity that has been sent from your solar panel to the grid and the amount of electricity that you have taken from the grid.

How does solar net metering work?

In the summer months, when your solar panel will receive maximum sunlight, the production of electricity will be more than your consumption. While in winters, the efficiency of the solar panel might get hampered, and you would need additional electricity from the power supplying the main grid. With solar net metering, you will be able to build utilities or incentive points by sending excessive electricity to the main grid. These earned utility points can be further used in winters to meet your energy usage. With the right size rooftop solar panel system, you can easily bring your electricity bill to zero. And that’s some huge financial savings!

Also Read: Things to Know About Home Solar Electricity in 2020

Solar panels produce energy during day time, when electricity consumption is relatively lower than night hours. But during night, in the absence of sun, solar panels don’t produce any energy while the electricity consumption is maximum. When there is high energy output, but low consumption, this indicates that a lot of excess energy is being produced during the day. If you are connected to the main grid, then you can use net metering. With this technique, you can reduce or waive off your electricity bill.

If your solar panel is producing 20 kWh of electricity during peak sun hour, and your consumption is just 2 kWh, then the extra 18 kWh will be sent to the main grid and you can use that grid electricity when the production at your end is not enough. This means that you don’t have to pay for all the power that you receive from the grid. Based on your credit utilitisation, you can cancel some or all of the electricity cost. You only pay for the “net” difference and hence it is called net metering.


Solar net metering is a beneficial concept that has been offered in various parts of the country and people are actively taking part in this process. No use of expensive battery storage and financial savings are the best advantages of net metering in solar panels.

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