Here’s All That You Must Know About Net Metering Before You Go Solar
While solar panels help produce free energy during the day, you may still have to rely on your local grid for energy during nighttime or on days when the solar panels don’t receive sufficient sunlight. Bearing this additional cost of electricity could be a major deal-breaker for someone contemplating the installation of a solar power plant. Also, installing batteries to avoid drawing electricity from the grid is not a very economically viable option as batteries are expensive and need to be replaced every 3 to 5 years (depending on their warranty).
The good news is that the Net Metering System is a great alternative to tackle this issue. For those of you who are not aware of what a net metering system is, or have limited understanding about it and its working, here’s a post that talks about everything that you must know about net metering before you go solar.
Let’s get started.
What is a net metering system??
A net meter is a device that records the units of electricity drawn from, and sent to, the local grid. It is quite similar to the electricity meter that is installed in our residences and is used to keep a track of the units of electricity consumed. The only difference being that, unlike our regular meter that records only the incoming units, a net meter is a bi-directional meter that records both outcoming and incoming units.
How does a net meter work?
The meter records the units of electricity imported and exported. If the number of imported units is more than the number of exported units then the user pays, the local grid, for the net units used. In case, the number of exported units exceeds the number of imported units then the local grid/distributor pays to the user or adjusts those units in the future bills (depending on their policy).
What are the benefits it offers?
As it is obvious from its working, a net meter helps you keep a track of the number of exported and imported units. This in turn offers two major benefits.
1. The tracking helps you understand your consumption. It helps you understand how your usage varies across the year. It also gives you an idea about the amount of energy produced by the solar panels during different seasons. This in turn helps you correctly size a solar energy system that matches your home’s electricity consumption.
2. The most important benefit of having a net meter is that it helps you reduce your energy bills by allowing you to pass on the surplus energy to your local grid.
Is it necessary to have a Net Meter?
No, it’s not but it’s the most prudent thing to do. If your solar power system is connected to a local grid, we suggest that you get a net metering system that can help you track your power consumption and also reap the benefits of offsetting the units imported with the units exported, in order to save on your electricity bills.
Want to Go Solar?
Make sure you choose the right solar power system based on your unique needs. Go check out Luminous’ wide portfolio of solar panels, inverters and batteries. If you have any questions or need someone to help you choose the right solar power system, the solar experts team will help you with the same.
