Net Metering Explained: How Solar Panels Help You Save More

In a world where electricity costs are rising, if you think about switching to solar, then it is a great choice. In addition to reducing your electricity costs, installing a solar system can create income from the excess energy it generates. This earning is only possible because of net metering.

So, what is this mechanism, and how does it save one's electricity bills? Let us break down this concept to know how solar systems can also work as a financial tool to help you save more.

What is Solar Net Metering?

Solar net metering is a type of billing method with the help of which you can send back whatever extra electric power generated by your solar system to the grid. In return, your electricity provider will give you credits. These can be used on cloudy days or at night when the solar systems are not producing enough energy.

In simple terms, when your solar system generates more power than your home needs, then the extra energy goes to your electricity provider in solar net metering.

Working Mechanism of Solar Net Metering

During the daytime, when sunlight is at its peak, the solar system produces more energy than your home consumes because, mainly, many of us are outside of our homes at this time for different purposes. It leads to less use of electricity. If you do not have solar net metering, then your solar system’s produced extra energy goes to the grid, but you do not get any type of return.

However, if you have solar net metering, then that excess energy does not get wasted, and it is transferred to the local electricity grid. Here, a special meter called a bidirectional meter tracks the complete energy flow and gives you credit for that additional energy that is sent back to the grid.

You can use these credits to balance your future electricity needs during periods of no or less sunlight. This makes solar systems a more worthwhile option for electricity consumption.

Checklist for Net Metering Approval

If you want net metering approval, then it is mandatory to follow the checklist below:

• Application forms and supporting documents such as proof of roof ownership, ID proof, a copy of a recent electricity bill, a declaration, and an NOC (if applicable).
• Technical and system details such as its specifications, the location plan of the solar, the interconnection agreement, etc.
• Other important requirements, such as fees, affidavits, and certificates.
• Survey to ensure that it matches safety and legal requirements.

Once you complete the inspection step and all requirements are met, you become eligible for the net metering application and can install a bi-directional meter.

Benefits of Net Metering

Installing solar net metering helps you use every portion of the energy that your solar system produces and ensures that nothing gets wasted. Here are some of its advantages:

• Financial savings: It is one of the major advantages for residential users that net metering can help them save on their utility bills. You can reduce utility bills by offsetting electricity consumption with your own solar generation. However, be mindful that the cost of your electricity can’t be almost zero with this net metering; you have to submit some fixed electricity charges. You also don’t need to spend money on batteries to store extra power.
  
  
• Shorter payback periods: The payback period will become comparatively small, and solar system homeowners will recover their investment by saving more money on their electricity bills. It will vary according to the amount of electricity consumed by the customer, the capacity of the solar system, and the cost of the entire solar system installation.
  
  
• Grid stability: It puts less strain on the conventional electricity grid by acting as a more distributed source. Homeowners do not have to depend on conventional power plants, and they can get stable power without any reliance.

Installation Process of Net Metering in India

Net metering installation is approached in India by undergoing a convenient step-wise process that costs anywhere between Rs 10,000 and 15,000. Whereas it is done pretty fast in some states like Gujarat and Uttar Pradesh, it takes a little more time in other places. Key steps are given below:

• Upload a net metering proposal to your nearby DISCOM along with all the necessary documents.
• A site inspection will be conducted by DISCOM officials.
• When the application is accepted, you have to acknowledge a net metering agreement.
• Now, install solar systems from reputed firms like Zodiac Energy Limited based on the guidelines.
• An official will again visit your site to inspect the proper solar system installation and finally give permission for a bi-directional meter.

Conclusion

Net metering proves to be a game-changer for everyone who switches to solar energy. It permits you to extract even more value from solar and generate clean power. So, if you already have a solar system or are thinking of installing a new one, incorporating net metering is one of the smart moves. Start your solar journey with Zodiac Energy Limited today, get the best solar panel installation with net metering, and watch a significant drop in your electricity bills.