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

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:

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.

Consumption and Production Tracking

Consumption and Production Tracking

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.

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.

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.