Net Metering is billing mechanism for grid connected Home Rooftop Solar Installation where :-
- 1. The electricity generated by the solar panels is fed into the utility grid.
- 2. Household draws electricity from the utility grid.
The household pays only for the difference between the energy units it consumes from the grid and the energy units fed into the grid. This is measured by a bi-directional meter called Net Meter. In the case of household generating net excess power during a month or a particular billing period, it earns credit for the excess electricity fed to the grid. This credit is carried forward to the next billing period when the credit is deducted from the total power bill of the consumer. This reduces power bill of the household as it only has to pay for the net electricity it consumes from the utility grid.