laagruthi Power & Infra Pvt. Ltd.

What is Net Metering?

Net n-retering is a mechanism which allows domestic or commercial users who geuerate
their own electricity using solar panels or photovoltaic systems to expott their surplus
energy back to the grid. An of grid system is generally a stand-alone system while an on-
grid system is connected to the main utility grid and incorporates the policy of net metering.
The process of net metering provides system owners with the opportunity to gain extra
revenue by selling their excess power to the grid while also making up fbr shortfalls via
the grid. If the amount of energy generated is more than the amount of energy consumed,
then the owner gets compensated fbr the excess amount. However. if the amount of energy
consumed is more than the amount of energy generated, then it is imported from the utility
grid and the owner pays only the net amollnt. In India, net metering was introduced as an
initiative to make renewable energy more economical and accessible with the regulations
differing on a state-to-state basis.

Method of Billing

In net metering, the owner is billed for the "net" energy that is used, which is the difference
between total energy produced by the system and total energy consumed. Net meterir-rg
accounls the diflerence of excess power exported back to the grid and total power
consumed by the owner. Hence, surplus energy earns revenue while the shortage of energy
is covered by the grid.

Adyantages of Net Metering

Extra Financial Credit

If the amount of energy generated by the owner's system is more than the amount
of energy consumed, then the owner will receive extra credits and revenue.
Eliminates the need for Battery Storage and Backup generator
tJnlike off-grid PV systems, owners don't require battery storage systems while
using net metering since the extra power is stored by the utility grid itself. lt also
eliminates the need for exorbitant generators since the electricity grid also acts as a
backup generator
Inexpensive and Low Maintenance
Since solar panels themselves are low maintenance, the main parts of a PV system
that require maintenance would be the battery and generator. However, through
net metering, you can eliminate these components and further decrease the
maintenance requirements

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Phone: 040 - 23119059, Website: www.jaagruthi.in
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