Net Metering vs Gross Metering What Homeowners Should Know

As such, selecting the appropriate solar panel is not the only factor that you have to consider when deciding on whether to go solar.

It may also be essential to know how the solar energy you generate will be measured and settled against the power grid.

Net metering India becomes relevant at this point.

Innovel have come across several homeowners who know how to produce solar energy, but lack knowledge about how they manage the excess energy that they don’t use.

What Is Net Metering?

With net metering, you use electricity produced by your solar panel first in your house. The extra electricity generated by your solar system above your current requirement will be transmitted to the power grid.

If the electricity generated is less than the demand in your household, you get electricity from the power grid.

A bidirectional meter measures all this, and at the end of your billing period, your electricity used gets credited against the electricity transmitted.

This makes rooftop solar quite helpful for the homeowner due to the presence of the grid which complements your solar system.

Innovel takes into account the electricity requirement of the household, conditions on the rooftop, and DISCOM regulations while planning for a solar system.

What Is Gross Metering?

Here, the gross metering process differs.

Whereas the previous method involved using the electricity generated from the solar power for domestic use and reconciling later, here the entire generated electricity is sold to the grid and the consumer uses electricity from the grid for domestic use.

The DISCOM pays/reimburses the system owner based on the tariff under the state regulations for the exported generation.

It, therefore, implies that the electricity generation and domestic use of electricity are separate processes.

For a client contemplating the installation of a rooftop solar panel, it becomes important as it makes a difference financially.

Net Metering vs Gross Metering

The most straightforward approach would be to examine how the electricity generated by the sun is utilized.

In the case of net metering:

  • Electricity produced by the solar system is used for the consumption of the house.
  • Any extra electricity is sent into the grid.
  • Imported electricity is offset against exported electricity.
  • The user is billed for net electricity consumption.

In the case of gross metering:

  • Electricity produced by the solar system is fed into the grid.
  • The consumption of the house continues through the grid.
  • Separate billing of electricity production takes place.

The Ministry of New and Renewable Energy explains this difference in its guidelines on rooftop solar systems.

Which Option Makes More Sense for Homeowners?

No universal solution exists for all houses.

For many families, net metering in India may appear as a good option, as it directly saves the money paid for electricity supplied from the power grid. But the details that will be offered to a particular customer will depend on the state, DISCOM, capacity of the system, category of the consumer, and existing regulations.

That’s why Innovel doesn’t regard metering as an add-on service. We take into account the energy consumption and local requirements before making any recommendations about the system during the planning stage.

The objective is clear: it should provide the benefit for the family rather than simply fit the roof area.

Why Your Daytime Consumption Matters

Solar panels produce electricity only when there is sunlight. In a house where there is high consumption of electricity during the day, the percentage of electricity consumed will go up.

In a case where an individual consumes electricity to cool his air conditioner, run the washing machine, water pumps, and other appliances during the day, the percentage of solar power used will be higher.

This will lead to lower consumption of electricity from the power grid. At Innovel, we analyze how much electricity is consumed before installing the roof solar panel system. Looking at past utility bills and consumption pattern of the household will prevent both over and under sizing of the system.

What Happens During a Power Cut?

An average rooftop solar system, which is connected to the grid, will not offer backup power during an outage in the grid.

This is because the average grid connected system will stop working in case of a grid failure due to safety reasons.

Innovel offers both on-grid, off-grid, and hybrid systems of solar power generation.

The Right Metering Choice Starts With the Right Solar Design

Net metering and gross metering do not simply refer to the technologies themselves but affect how a homeowner harnesses his solar energy and records his electricity output.

In net metering in India, it is important to understand the local regulation and processes at the DISCOMs before setting up one’s system as the metering systems differ in each place.

In Innovel Solar, the procedure encompasses site assessment, system design, documentation, installation, and metering process wherever it applies to help make the journey easier for our clients from solar plan to solar savings.

Solar energy on the rooftop can be made to work most effectively only when all factors related to panels, household consumption, grid, and metering system are taken into consideration. For homeowners, this means that making the right choice depends not only on creating more electricity but utilizing it efficiently.

FAQs

  1. What is net metering and gross metering?

Whereas net metering enables the use of solar energy supplied to the grid to offset energy usage, gross metering treats both forms of energy differently.

  1. Is net metering feasible for rooftop solar in residential settings in India?

It is feasible, provided that you adhere to the relevant state and DISCOM regulations. You may look at the regulations regarding your electricity supply.

  1. Would rooftop solar completely eliminate my electricity bills?

Though solar energy can definitely reduce electricity bills considerably, there would be some fixed charges and maybe other charges.