How Net Metering Works?
Net metering is quite an innovative concept of this age where an instrument has been developed to boost up the production of small scale renewable energy systems even when their renewable generators are not producing energy. The net metering system provides substantial benefits to the electric power-generating system as well as the environment. It is a special agreement on metering and billing of utilities of energy, which facilitates the connection of small, renewable energy-generating systems to the power grid.
Net metering customers are charged only for the net power that they consume from the electricity service provider that has accumulated over a specific period. In other words, the extra renewable energy generating systems may be credited or paid for the excess electricity contributed to the grid over that same period.
Net Metering System and Power supply
The net metering system has a provision to increase the energy in the power grid to keep up with increased demand during peak power use times, and this is a benefit for the areas facing power shortages. If the solar power system produces less electricity than you need, or if you need energy in the absence of sunlight, that power is automatically supplied from the utility grid.
If your solar power system generates more electricity than you need, the extra electricity is delivered back to the utility grid. In a state with a net metering solar power system, you get credited for the electricity delivered back to the grid at the same retail price that you pay for the electricity you take from the grid.
States which do not run the power supply on net metering follow the law, according to which the customer is paid for the excess electricity at the so-called “avoided cost” of electricity, which is generally the wholesale cost of purchasing the power.
The Benefits of Net Metering System
The net metering solar power system makes residential solar energy system ownership much attractive and affordable for many families. It helps save customers’ money spent per year on their utility bills. It makes the process of accounting for the energy flow, to and from the utility, simpler to administer.
The net Metering system has been successful in many states of developed and developing nations. Net metering in Maharashtra in India can serve as a good example to other Indian states as well who have not yet started the use of this system. This advanced technology of using solar power will definitely be a hallmark of success in the time to come.
