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What is net metering in the solar system? And How does it work?

What is net metering in the solar system? And How does it work?

Net metering is a concept of electricity bills used for both commercial and residential users who also generate electricity using solar rooftop panels or photovoltaic cells. This concept is also useful for those who are connected to on-grid or hybrid systems and send back excess energy to the electricity company.

Solar net metering concept

We live during a time when individuals across the world are turning out to be progressively aware of the climate. State-run administrations are encouraging and boosting organisations and residents to embrace inexhaustible wellsprings of energy. As an ever-increasing number of individuals are choosing to practice environmental safety, there are a couple of terms that have crawled into our vocabulary. One of them is Net Metering.

It is famously used by solar rooftop solution provider salespersons while you finalise and deal with them to install solar power systems on your site. 

Solar net metering is a mechanism that incorporates a subtle calculation based on a difference between energy consumed and energy generate to generate a final electricity bill. 

For example, if you consumed 1000 units in a month and generated 900 units in the same month then you will only have to pay for those extra 100 units you consumed to the electricity company. That way, net metering has brought down your electricity bill by a whopping 90%.

How does net metering work?

The net metering systems work only for either on-grid solar systems or hybrid solar systems i.e. the connection to the main grid is a must to implement the net metering system. 

Now the solar power systems are connected to the utility grid which passes through the main service panel and customer meter. In the situations where the solar power systems generate more electricity needed at the site, the excess electricity runs through the connection to the utility grid and the electricity company.

To tackle this situation, a bi-directional meter is needed. This bi-directional meter keeps a track of units generated and units utilised on-site. Thus final electricity bill is a net of the difference and not based on absolute usage. 

Knowing the mechanism and working systems of net metering, let’s have a quick look at the benefits of net metering systems.

Benefits of net metering

  • You can have full transparency and control over your electricity billing
  • No need to go off-grid and invest in huge batteries to go green
  • Zero maintenance systems
  • Accurate data measurement and storage. In some cases, it can also be synced to your phone via apps
  • You are now an active contributor towards helping others use green energy that you generate and earn in exchange for it


So if you are looking to install solar rooftop systems which have smart utilities like net metering synced with your smartphone then feel free to contact Saysolar anytime.

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