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An on-grid solar system on your rooftop will mandatorily have a net meter. Questions like what is net metering, what is the role of a net meter, how is it different from a conventional meter and how does the billing process work might come to your mind. Scroll below to find answers to these questions.

What Is Net Metering?

A net meter is a bidirectional meter installed with rooftop solar panels. It is a necessary component of an on-grid rooftop solar system as it measures the total import and export of electricity.

It helps in reducing your electricity bill per month by allowing you to pay for the net imported units. In case your export is more than your import, these additional units are carried forward to the next month. For instance, if you exported 200 units to the grid and imported 150 units in a month, the remaining 50 units will be carried forward to the next month.

What Is the Role of Net Meter in Electricity Bill Generation?

Net meter plays an important role in on-grid solar systems and the electricity billing process. Here is its role in electricity bill generation.

1) Reduces Electricity Bill

As a net meter captures both exports and imports of electricity, to and from the grid, you will have to pay for the net import. This will reduce your total electricity bill. Consider the following example to understand how your electricity bill will decrease if you install a 2KW solar panel.

Let’s assume that the monthly energy needs = 260 units.

2 kW solar system produced electricity = 240 units (1 KW solar panel can produce approximately 4 units each day)

Total energy consumed = 260 units

Net imported electricity = 260 – 240 units = 20 units

Thus, you will have to pay for 20 units with solar panels. However, in the absence of solar panels, you will have to pay for 260 units. So, your electricity will be reduced with an on-grid solar panel installation and a net meter.

2) Records Electricity Usage

Net metering helps you monitor the electricity export and import without relying on other devices. As a result, you can track the total electricity you consume and produce with your rooftop solar panel.

3) Eliminates The Need to Store Electricity

As a net meter helps in exporting electricity to the grid, you will not need to store electricity in batteries. This will further eliminate maintenance needs for batteries while reducing your installation cost. In this regard, you may also like to know about the total installation price of solar systems for home.

Electric Bill Before and After Solar Panels

The electricity bill before and after installing solar panels will differ significantly. Notably, after installing solar panels you will have lower electricity bills per month. Here is why your bills will differ:

	Bill before Solar	Bill after Solar
Bill Amount	As usual, you will have to pay for the total unit you consume	Lower with solar panels; as you produce electricity from solar system

In this regard, you may also like to know that the gross metering option is also available in India. In this metering system, the buying price for imported electricity is different from the selling price of exported electricity. Know the difference between net metering and gross metering.

Method of Electricity Billing with Net Meter

In electricity billing with a net meter, you have to pay for the excess units imported from the grid. Refer to the following scenarios to understand the billing process.

Scenario 1

Suppose, per unit cost of electricity is Rs. 8 and you export 100 units to the grid in a month. Further, you imported 150 units from the grid in the same month. Then your electric bill will be as follows:

Rs. (150 – 100) x 8 = Rs. 400

On the other hand, your electricity bill without solar panel benefits would have been Rs. 150 x 8 = Rs. 1200. Thus you will save Rs. 1200 – Rs. 400 = Rs. 800.

Scenario 2

Suppose, per unit cost of electricity is Rs. 8 and you export 200 units to the grid in a month. However, you import 50 units in that month. Since your imports are lower than your exports, 200-50 = 150 units will be carried forward to the next month for adjustment in the bill.

Reducing your electricity bill is the most important role of a net meter in an on-grid solar system. To increase your savings per month ensure you install an on-grid solar system on your rooftop.

You can install an on-grid solar system with Das Energie Private Limited. It is a customer-vendor connecting platform that lets you get charge-free solar quotations from solar vendors at your location for your home rooftop solar panel installation.