When your home is equipped with Renewable Energy Facilities such as wind or solar power (Photovoltaic cells), Net-metering allows residential and commercial customers to generate their own electricity and feed electricity they do not use back into the grid. An electrical converter called an inverter turns the DC (direct current) power coming from your renewable energy facility into AC (alternating current) power, which matches the voltage of the electricity flowing through the power line.
An Import Meter and Export Meter are provided and record’s the reading of electricity taken and fed back to the grid. If the renewable facility generates more energy than you’ve used, your electric company may pay you back for the extra power at the retail rate.
It is the like selling electricity to the Distribution Utility. But there is no financial credit for selling the units; they remain as electricity units. At night or at any time when you use more than the electricity produced by the renewable facility, the extra power is imported from the grid. An import meter records the electricity taken from the grid and an export meter records the electricity fed to the grid.
At the end of the month when the electricity bill is calculated, the value of the units imported from the grid is set off against the units you have exported. When you produce more electricity than you use in the month, your electricity bill drops by 100% and the value of the excess units goes towards your next bill. If you haven’t produced enough units for your own use, you pay only for the units imported from the grid, at the normal tariff.
The most obvious benefit of net metering is to consumers. If you install net metering in your home, you can reduce the amount of money you spend each month on energy. You can even make money if you produce more than you consume and your utility company pays you for that excess energy at the retail rate.
Benefits of NET Metering System
- Financial Credit for Extra Solar Power Produced
- No Battery Storage System Needed
- No Maintenance
- System Feed the Power to Main Grid Even Peoples Away From Home
- Environment Friendly
- Reliable After Sales Service