In India, the average cost of electricity supply was Rs. 3.55 per kWh in FY2010 and Rs. 7.11 per kWh in FY2023. This indicates an average annual inflation rate of 5.9%.
Therefore, electricity bills can sometimes feel like an unwelcome surprise. But what if there was a way to reduce them while using a cleaner source as well – the Sun? That is where solar energy comes in. Many homes and businesses now install solar panels to generate their electricity.
The sun shines throughout the day, continuously generating electricity through your solar panels. Sometimes, this can be more than what you need. Instead of letting the extra power go to waste, net metering allows you to send it back to the grid, helping lower your electricity bills. It mainly operates in on-grid setups. Read the blog on how off grid and on grid solar differ from each other. Let us take a closer look at how Net Metering works and why it is becoming a popular choice for many.
So what is net metering in solar system? It is a billing mechanism used if you have a grid-connected solar energy system such as an on-grid and hybrid system at home or in business. The solar panels make electricity from sunlight. Sometimes, they produce more power than needed or are being used. Instead of wasting it, this extra electricity is sent to the main power grid.
With solar net metering, if your rooftop solar panels make extra electricity, you can send it to the grid and get paid. In case, the total electricity consumption is greater than the units generated, the extra electricity will be used from the grid.
Instead of paying the full electricity bill, you have to pay only for the extra units used from the DISCOM’s grid. In India, net metering was introduced to make this calculation easier and reduce your overall bill. However, the rules vary by state.
A net meter is a special electricity meter used in homes or businesses with grid-connected solar systems. It measures 2 things; electricity used from the DISCOM’s power grid and electricity sent to the grid when solar panels make extra power.
The net meter calculates the difference between these two amounts. If more electricity is sent to the grid than used, you get paid or get a credit. If more electricity is taken from the grid than produced, you need to pay only for the extra amount.
There are two types of grid-connected solar systems where a net meter connection is used; on-grid solar system (which is connected to the main power grid) and hybrid solar system (where the solar system is connected with both; solar batteries and electricity grid).
Remember that, this meter is not installed with off-grid solar systems as there is no connectivity with the grid. In short, this electricity meter helps keep track of energy use and saving which makes solar power even more useful.
Solar net metering helps people in India with solar panels use electricity wisely. It works in the following way:
Without net metering, this extra electricity would be wasted. However, with net metering, the extra power goes to the main electricity grid. A net meter keeps track of how much energy is sent.
The electricity company gives you credits for the power your solar panels send to the grid. These credits are added to your electricity bill.
At night or on cloudy days, when solar panels do not make enough electricity, you take power from the grid. Now, instead of paying full price, your credits cover the cost.
Since the net meter records all the power you send and take, you only pay for what you use. This helps reduce electricity bills and makes good use of solar energy.
Here is an example of how your DISCOM calculates the electricity bill with a net metering system:
|
Total Consumed Electricity |
350 Units |
|
Total Electricity Exported to the Grid |
250 Units |
|
Net Units Consumed |
(350-250) = 100 Units |
|
Final Bill |
Rs. (100 x Cost of 1 Unit) |
The various advantages of solar net metering are:
The steps to install net metering in India vary from state to state, however, the general process includes:
You can find the list of empanelled vendors on the official website of the national portal for rooftop solar.
The cost of solar net metering installation differs in every state of India. Generally, you have to pay an application charge of Rs. 500, with a registration charge that depends on the solar panel’s capacity.
The table below shows charges for net metering based on the size of each solar panel:
| Capacity (kW) | Charge (Rs.) |
| 1 to 10 | 1,000 |
| 10 to 50 | 3,000 |
| 50 to 100 | 6,000 |
| 100 to 300 | 9,000 |
| 300 to 500 | 12,000 |
| Above 500 | 15,000 |
The table below gives details about the fees that you have to pay for your net meter installations:
| Type of Net Meter | Charge (Rs.) |
| Single-phase net meter | 1,500 |
| Three-phase net meter | 7,800 |
| LTCT net meter | 9,200 |
| HT net meter | 10,400 |
The net metering policies and regulations in India are:
The government may introduce time-based tariffs and promote energy storage for better grid management.
To conclude, solar net metering is a smart way to use the Sun’s energy. It helps save money by sending extra electricity back to the grid. This is a combination of less pollution and lower electricity bills. It also makes our planet greener. With solar net metering, we can use clean energy wisely and make the future bright. At Sunsure Energy, we specialize in round the clock PPA solutions helping businesses and individuals transition to clean, cost-effective energy.
In India, solar net metering applications allow homes and businesses with solar panels to send extra electricity back to the main power grid. This helps you to reduce electricity bills and promotes the use of clean energy. However, net metering policies vary across different states.
Yes, you can upgrade your existing solar system to include net metering. This allows you to send extra electricity your solar panels produce back to the main power grid, reducing your electricity bills. To do this you need to contact your electricity provider to understand their specific requirements and procedures.
The main drawback of solar net metering is that this system is unavailable in all locations and from all providers and you must connect your solar panels to the grid. On the other hand, you do not receive any in-hand payment for the power you produce and after a certain time, if you do not use the units, you will lose the credits.
