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How does net Metering Work in Solar Energy Systems?


Metering Work in Solar Energy Systems

Net metering is a billing mechanism that allows owners of solar energy systems to receive credit for the electricity they generate but do not use immediately. Here's how net metering works in solar energy systems:

 

  1. Solar Energy Generation: When a solar energy system, such as a rooftop solar PV system, generates electricity from sunlight, it produces direct current (DC) electricity, which is converted into alternating current (AC) electricity by an inverter. This AC electricity can then be used to power electrical appliances, lights, and other devices in the home or business.

  2. Usage and Excess Generation: During periods when the solar energy system generates more electricity than is being used on-site, the excess electricity flows back into the electric grid. This typically occurs during sunny days when energy demand is low or when energy consumption within the building is minimal.

  3. Net Metering: A bi-directional meter, also known as a net meter, is installed by the utility company to measure both the electricity consumed from the grid and the electricity exported to the grid by the solar energy system. The net meter tracks the difference between the electricity consumed and the electricity exported over a specific billing period, usually monthly.

  4. Billing and Credit: With net metering, the customer is billed only for the net energy consumed from the grid, which is the difference between the electricity consumed from the grid and the electricity exported to the grid. If the solar energy system generates more electricity than is consumed over the billing period, the customer receives a credit on their electricity bill for the excess generation.

  5. Credit Roll-Over: In many net metering programs, any excess electricity generated beyond what is used in a given month is carried forward as a credit to future billing periods, typically for a set period of time, such as one year. This allows customers to offset their electricity bills during periods of low solar energy production, such as in the winter months or on cloudy days.

  6. Settlement and True-Up: At the end of the designated period, such as the end of the month or the end of the billing cycle, the customer's electricity usage and generation are reconciled. If the customer has consumed more electricity than they have generated over the billing period, they pay the net amount owed to the utility. If they have generated more electricity than they have consumed, they may carry forward any remaining credits or receive compensation from the utility for the excess generation.

 

Net metering policies vary by location and utility company, and eligibility and specific terms may differ depending on local regulations and utility tariffs. However, net metering provides an incentive for solar energy system owners to generate clean, renewable energy and can help reduce electricity bills while promoting the adoption of solar energy technologies.

 

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