Net Metering in the context of Renewable energy systems

You might have heard a lot about Net Metering. Haven’t you?

In this article, I will go through this concept in the context of renewable energy systems.

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What is Net Metering? Net metering is a billing mechanism or system adopted by utility companies that promotes and encourages individuals or businesses generating their own electricity from renewable energy sources (such as solar or wind) to feed excess amount of electricity back into the national grid. This surplus electricity is measured by a bi-directional meter installed in the consumer premises, which keeps a record of both the electricity consumed from the grid and the surplus electricity sent back to the grid.

Renewable energy system: A renewable energy system is a setup that produces energy from naturally replenishing sources, which are naturally unbounded and environmentally sustainable and friendly. These systems generate electricity or provide heating and cooling solutions using renewable energy resources that can be naturally and easily replenished, such as solar energy, wind, water, geothermal, fossil fuels and biomass.

To further elaborate the concept of Net Metering, when a renewable energy system, like solar panels, generates more electricity than is currently being used on-site (by the consumer), the surplus is transmitted back to the grid. Net metering gives credit to the account holder for the excess electricity generated, effectively turning the meter backward or providing credits that offset the future electricity bills (the utility bills will be lower due to the credit given for such transmission of the excess electricity back to the grid.

During times of the day, when the renewable energy system does not generate enough electricity to fulfill the immediate demand of the consumer, such as at night for solar panels, electricity is drawn from the grid as usual. The two-way meter records this consumption of electricity units, and the account is charged based on the net energy used after considering the account of any excess energy previously transmitted to the grid.

Benefits of Net Metering: Net metering is of immense importance and provides a lot of benefits for the development of a society, as it allows consumers to cut their electricity bills, and potentially earn credits by generating clean, green and cheap renewable energy. It encourages and promotes the adoption of renewable energy systems by making them more economically and environmentally viable, and helps reduce overall dependence on non-renewable and traditional energy sources, benefiting both the consumers and the environment, as well as utilities, thus playing a vital role in the development of economy and overall wellbeing of a country.