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A Complete Guide to Net Energy Metering – What it is, Methods of Billing & Advantages.

Net energy metering is a game-changer in the world of renewable energy, providing a smart and efficient way for solar users to manage their energy consumption. This innovative process allows solar users to generate their own electricity and benefit from the excess energy produced by their solar energy setup. 

By allowing consumers to use solar power to offset their energy consumption costs, a net meter not only saves but also supports environmental sustainability. Read this blog as we discuss the basics of net metering, its workings, billing methods, and a lot more.

What is Net metering? 

Net metering, in simple terms, is a process that enables domestic or commercial users to generate their own electricity using solar panels or photovoltaic systems and later send their surplus energy back to the grid. 

An off-grid system is generally a stand-alone system, whereas an on-grid system is connected to the main utility grid and works on the policy of net energy metering. In India, net metering was introduced to make renewable energy more accessible and affordable for common users. In the case of net metering, rules and regulations vary on a state to state basis. 

How Does Net Metering Work?

Net metering is the utility billing process of recording the excess energy generated by a customer’s solar energy setup and then crediting it towards energy drawn from the grid. This way it works just fine to compensate solar panel owners for their contributions in terms of energy contributions. 

True net metering or 1-for-1 net metering is the simplest method that offers credit for every kilowatt-hour (kWh) of electricity sent back to the grid, which can be redeemed toward every kWh used when the sun isn’t there. 

So, when a customer gets a solar energy generation system installed, the utility replaces their electric meter with a new bi-directional energy meter. These net energy meter devices record the amount of energy exported to the grid and the energy the customer withdraws from the grid when the solar panels aren’t making enough power to handle their home needs. 

At the end of every billing period, the utility sums up the energy sent by a customer to the grid and the energy used from the grid. 

If the homeowner uses more electricity than they send, the utility bills them for the difference. If the user sends more energy to the grid than they used, the utility will offer a credit that will be applied to the user’s next monthly bill. 

Advantages of Net Energy Metering 

Net energy metering offers many benefits for solar energy system owners, the grid, and society as a whole. Net metering can save homeowners thousands on their utility bills every year, making it a good decision in the long run. Let’s discuss these benefits in more detail below: 


From cost savings to environmental impact, net metering is revolutionizing the way we think and manage our energy consumption. This approach to energy management offers substantial economic and environmental benefits. With innovative solutions from leading enablers like us, Genus company, the future of energy metering is brighter than ever. 

As we look towards a future powered by renewable energy, adopting net metering can play a crucial role in reducing our carbon footprint and enhancing energy efficiency. For more information, please visit our website or get in touch with our experts now. 


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