If you've been thinking about installing solar panels, you've likely come across the term "net metering." But what does it mean, and how does it affect your energy bills?
In this post, we’ll explain what net metering is, how it works in India, and how it can help you get the most from your solar investment. ๐Net Metering: The Simple Definition Net metering is a billing system that lets solar panel owners sell extra electricity back to the grid and receive credits for it. In simple terms: You generate your own solar power, use what you need, and send any surplus to your electricity provider. In return, you earn credits that lower your electricity bill. ๐ ️How Does Net Metering Work? Here’s a step-by-step look at how it works: Your solar panels produce electricity during the day. Your home uses part of this electricity. Any extra energy goes to the power grid. Your electricity meter runs backward, giving you credits. At night or on cloudy days, you draw electricity from the grid. Your credits offset the energy you use from the grid. ๐Example Scenario Let’s say your solar panels generate 500 units of electricity in a month. Your home consumes 300 units. The extra 200 units are sent to the grid. If you then consume 100 units from the grid at night or during rainy days, your net usage is only (100 - 200) = -100 units. So your electricity bill might be zero or even negative, depending on your provider. Net Metering in India The Indian government supports net metering in most states to encourage rooftop solar. Many DISCOMs (Distribution Companies) allow homes to connect their solar systems under rooftop net metering policies. Key features of net metering in India: Most states permit systems up to 10 kW to 1 MW under net metering. You need to apply for net metering approval from your local DISCOM. A bi-directional meter will be installed at your home. Credits typically carry over for up to 12 months. Many states offer a 100% energy offset for residential users. ๐ชBenefits of Net Metering ๐ฐ1. Reduced Electricity Bills Your monthly electricity bill can drop significantly or even reach zero. ⚡2. Better Return on Investment Exporting extra energy helps you earn credits, shortening your payback period. ๐ฑ3. Encourages Renewable Energy Use It promotes clean energy and decreases reliance on fossil fuels. ๐4. Energy Security Even if your production decreases during rainy seasons, credits from sunnier months can balance your usage. ๐ก5. Increases Property Value Homes with solar and net metering tend to attract more buyers. ๐งพWho Can Use Net Metering? Net metering is available for: Homeowners Apartment societies Schools and institutions Businesses and industries Anyone who installs a solar system and receives DISCOM approval can apply. ๐ง Things to Know Before Applying Make sure your solar system is grid-connected. Apply for net metering approval before or right after installation. Choose a certified solar installer who manages the net metering paperwork. Some states may charge a small processing fee.๐ฌ Call to Action
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