When you get electricity bills at your home, office, or school, an electricity meter records the units of electricity you consumed. Conventionally, you only use the electricity generated from the power grid for which you get charged. Though, when you produce power at your home, your entire relationship with the power grid supplier changes.
Your electricity consumption is measured and calculated by a metering device, and a bill is generated based on the readings. The very same principle applies when you connect your rooftop systems to the grid. When you plan to go solar, there are two metering modes available: solar net metering and gross metering.
Have you ever heard of these terms? Do you know exactly how they differ from one another? And which one should you opt for? Let's find out by answering a few questions!
What is Net Metering, and how does this work?
The net metering policy in India, introduced in 2015, made solar energy more economical and accessible for everyone. It measures the difference between energy exported from the rooftop solar power system and the energy import from the grid. Based on the solar net metering system applicable in your state, you either have to pay for the difference in units or get paid by DISCOM for extra units of energy generated by your system at the end of the billing cycle.
In simpler words, solar net metering is achieved when you set up a rooftop solar system for your electricity consumption, with the surplus energy generated being exported into the power grid.
It is a well-known fact that a rooftop system does not generate a steady amount of power at all times owing to numerous reasons like weather conditions. Therefore, the power generated can either be more or less than what is demanded. A bi-directional meter is used to account for both the imported and exported energy in the solar net metering system to balance this excess or lack of power supply. This meter records only the amount of surplus solar electricity exported to and imported from the grid.
For instance, if your daily electricity consumption is 20 units and electricity generated by the solar system generated is 12 units, the net metering system will import 8 units from the grid and charge you for the same. Conversely, if you consume 12 units and generate 20 units a day, then the net metering system will export the excess 8 units to the grid and pay you for the same.
What is Gross Metering, and how does this work?
The gross metering system does not allow you to use the power generated by your solar panels. Instead, it is exported to the grid and then supplied to you. Since it involves two circuits, two meters are installed: one for electricity consumption while the other for its production. Your billing system continues to be the same as it was before the solar panel system installation. The only difference in this type of metering system is that you will get paid for the energy produced by your solar panels separately.
