Net Metering: How it Works and Why it's the Perfect Solution for Solar on Grid Systems

PUBLISHED ON May 17,2023 By : Harikrishnan k.r

With the increasing adoption of renewable energy sources, net metering has emerged as a popular way to promote clean and sustainable energy generation. Kerala, known for its lush green landscapes and commitment to environmental conservation, has implemented net metering to encourage the use of solar power. In this article, we will delve into the intricacies of how net metering works in Kerala and provide an example of net metering billing, showcasing the practical aspects of this system.

  1. How Does Net Metering Work in Kerala?

    Net metering is a billing arrangement that allows residential and commercial consumers who generate their own electricity through solar power to feed any excess electricity they produce back into the grid. This excess energy is then credited to their electricity bill, effectively spinning their electricity meter backwards. Let's explore the process of net metering in Kerala:


  2. Installation of Solar Panels and Bi-Directional Meter

    To participate in net metering, consumers must install solar panels on their rooftops or any other suitable location where they can harness solar energy. These panels convert sunlight into direct current (DC) electricity. The generated electricity passes through an inverter, which converts it into alternating current (AC) electricity suitable for household or commercial use.


    Alongside solar panel installation, a bi-directional meter is installed to track the amount of electricity consumed and the surplus electricity fed back into the grid. This meter measures both the electricity imported from the grid and the electricity exported to the grid.


  3. Consumption and Production Tracking

    Consumption and Production Tracking


  4. Billing and Accounting

    At the end of the billing cycle, the consumer receives an electricity bill that takes into account both their electricity consumption from the grid and the surplus electricity they exported. This is where the concept of net metering comes into play. The surplus electricity exported to the grid is subtracted from the electricity consumed from the grid, resulting in a "net" consumption value.

  5. Credit and Carry-Forward

    If the consumer has exported more electricity than they have consumed during the billing cycle, a credit is applied to their electricity bill. This credit can be carried forward to subsequent billing cycles, effectively offsetting future electricity consumption from the grid. However, it's important to note that the policies regarding credit carry-forward may vary depending on the specific regulations implemented in Kerala.

  6. Example of Net Metering Billing

    To illustrate how net metering billing works in Kerala, let's consider the case of Mr Rajesh, a residential consumer who installed solar panels on his rooftop.


    1. Mr Rajesh's solar panels generate 500 kilowatt-hours (kWh) of electricity during a billing cycle.

    2. Throughout the same period, Mr. Rajesh consumes 800 kWh of electricity from the grid.

    3. The surplus 500 kWh of electricity generated by Mr. Rajesh's solar panels is exported to the grid.

    4. The net consumption is calculated by subtracting the exported electricity (500 kWh) from the imported electricity (800 kWh), resulting in a net consumption of 300 kWh.

    5. Mr. Rajesh's electricity bill reflects the net consumption of 300 kWh, and he is

    applied a credit for the excess 200 kWh that he exported to the grid. This credit can be carried forward to future billing cycles, reducing his electricity expenses.


    By participating in net metering, Mr. Rajesh not only reduces his dependence on the grid but also contributes to the overall electricity generation from clean and renewable sources. Net metering allows him to make the most of his solar power system and enjoy the financial benefits of reduced electricity bills.


Net metering plays a vital role in promoting renewable energy adoption and reducing carbon footprints. In Kerala, the implementation of net metering has provided an avenue for consumers to generate clean electricity and benefit financially from surplus energy production. By understanding how net metering works and the example of net metering billing in Kerala, individuals and businesses can make informed decisions about harnessing solar power and contributing to a sustainable future.


Have more questions regarding the solar metering systems? Comment down your questions below and our experts will help you out.




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