What is net metering?
Net metering is the process of receiving credit for electricity generated from renewable sources such as wind, hydro, biomass and solar. The law generally requires utilities to compensate their customers with net metering credits at the retail rate for the electricity produced. The amount of credit available for a customer depends on how much electricity they generate.
How does net metering work?
Generally, net metering allows customers to receive credit for the excess electricity generated by their solar panels. This is called “net” metering because the net amount of electricity received by a customer is equal to the net amount of electricity sent to the utility by the customer minus the net amount of
electricity that the customer uses.
Net metering usually occurs when there is excess electricity during peak hours, or after-hours. When the amount of electricity generated exceeds the amount of electricity consumed, the excess electricity is credited to the customer, and the utility charges the customer at a lower rate. The utility also pays for the electricity that the customer uses during the peak and after-hours hours. The cost of electricity used by the customer during non-peak hours is called “net metering surcharge.”
- Grid connection
- Measure energy usage
- Earn credit
When the amount of electricity generated is less than the amount of electricity consumed, the customer receives less credit than they would if there was no generation of electricity.
Who is eligible for net metering?
Net metering is available to any customer who owns or leases a solar system, and meets certain requirements minimum installed solar capacity is 5kw inverter and 5 kw solar panels. Solar systems that are eligible for net metering include systems with photovoltaic panels, solar hot water heaters, and solar air conditioning systems. Solar systems cannot be connected to the grid until the property owner or lessee submits a request to the utility.
Benefits of Net Metering
- Save energy
- Reduce electric bills
- Power your community
Net Metering Rules:
National Electric Power Regulatory Authority (NEPRA) recently presented their Net Metering facility with alternate energy development board (AEDB) approving certain vendors only after these fulfilled stipulated criteria. Conservation is the lowest cost alternative (net solar) to high utility bills. The cheapest kilowatt is the one you don’t have to go out and purchase.