What Is Gross Metering & Net Metering And How Does It Work?

India is one of the leading generators of solar energy around the world owing to its perfect geographical location. The country experiences around 300 sunny days every year. This is why going solar has so much potential for any home or business owner in the country.

With an optimized solar system built with the features net or gross metering, you can easily save up to 80% on the monthly electricity bill.  However, which metering facility should you opt for? Let's try to understand both the metering facility available in India:

Gross Metering

In gross metering, the entire energy generated by the solar PV system is supplied directly to the utility grid. In this type, the owner of the system gets compensated based on feed-in tariffs proportional to the energy supplied to the grid. 

Net metering

Solar Net metering is a facility that allows the solar system owner to supply the excess energy generated by the solar system to the grid. Which means the power generated by the system is first used to fulfill the power needs of the home or office, and then any surplus energy left is sent to the grid. The incentive for the same is adjusted in the monthly and yearly bill amount as per the net-metering policy of the state.

How does the net metering work?

Case 1

If at any point in time, solar energy generation (kWh) is less than the load requirement at that time, the difference of energy is then taken from the primary grid, and the meter runs as usual. In this situation, the solar panel owner is charged for the units (kWh) consumed from the main grid.

Case 2

If at any point in time, solar energy generation (kWh) is more than the load requirement, the surplus solar energy is fed back to the main grid, and the meter then runs backward. In this situation, the panel owner gets credit for the units (kWh) supplied back to the main grid. 

At the end of the billing period:

• If case 2 > case 1, the difference of units is either carried forward to the next billing period or the owner is paid for the difference of units as per the tariff decided by the concerned utility.

• If case 2 < case 1, the owner is charged for the difference of units as per regular retail tariff

In short, the owner gains/pays for the ‘net’ energy used over the designated period.

With net metering, one can save a lot

Homeowners are credited for the energy that their solar systems generate at the same rate that they would pay to their utility. As a result,  anyone can save lakhs of rupees on electricity bills every year. You can easily check your estimated savings from solar by using a solar calculator by MYSUN, India’s largest online rooftop solar company.

Hope this article has helped you gain all the necessary information about net metering. If you want to go solar, delay no more because the sooner you go solar the more you save. If you are a home or a business owner in Delhi, you can avail of a limited time 30% solar rooftop subsidy and save big on your solar system cost.