Net metering is an agreement that allows the solar PV system owner to sell excess solar energy to the utility company or buy deficit energy from the utility company using a meter to track this energy exchange.
Following 2 cases take place in this scenario:
Case 1: If at any moment of time, if solar energy generation (kWh) is less than the load requirement at that time, the difference of energy is taken from the main grid and the meter runs forward, as usual. In this case, the system owner is charged for the units (kWh) consumed from the main grid. Eg. During early morning or during late evening/night.
Case 2: If at any moment of time, if solar energy generation (kWh) is more than the load requirement at that time, the excess solar energy is fed back to the main grid and the meter now runs backward. In this case, the system owner gets credit for the units (kWh) fed back to the main grid. Eg. During peak sunshine hours (afternoon).
Thus, at the end of the billing period:
If case 1 > case 2, then the owner is charged for the difference of units as per usual retail tariff
If case1 < case 2, then the difference of units is either carried forward to the next billing period or the owner is paid for the difference of units as per the tariff decided by the concerned utility.
* Kindly refer your state policy/utility company policy for more information about tariff
You can also download this Net Metering in PDF version.
