Net Metering Benefits

Net metering in India offers several advantages to consumers, primarily by allowing them to offset their electricity bills with the excess energy generated by their solar PV systems. Let's break down its benefits with an example:

Scenario:

Suppose you have a rooftop solar PV system installed on your home in India, and you're enrolled in a net metering program. Throughout the year, your system generates surplus electricity during sunny days when your energy consumption is low. However, during evenings, nights, and cloudy days, you draw electricity from the grid when your solar panels aren't producing enough.

Advantages of Net Metering:

1. Offsetting Consumption with Production:

With net metering, any excess electricity generated by your solar panels is fed back into the grid, and you receive credits for it. These credits can then be used to offset the electricity you draw from the grid when your solar panels aren't producing enough. This means you only pay for the "net" electricity consumed from the grid, effectively reducing your overall electricity bill.

2. Financial Savings:

Net metering helps you save money on your electricity bills by reducing or eliminating the amount you owe to the utility company. Instead of paying for all the electricity you consume from the grid, you only pay for the net amount consumed after accounting for the excess energy exported to the grid.

Numerical Calculation:

Let's illustrate this with a simplified numerical example:

- Total electricity consumed from the grid throughout the year: 5000 kWh

- Total electricity generated by your solar PV system and exported to the grid throughout the year: 3000 kWh

Step-by-Step Calculation:

1. Net Consumption:

Net consumption = Total consumption - Total solar generation

Net consumption = 5000 kWh - 3000 kWh

Net consumption = 2000 kWh

2. Calculation of Bill:

Assuming a tariff rate of ₹8 per kWh, your total bill would be:

Total bill = Net consumption × Tariff rate

Total bill = 2000 kWh × ₹8/kWh

Total bill = ₹16,000

Savings Calculation:

Now, let's calculate how much you saved over the year compared to not having a solar PV system:

- Without net metering, you would have paid ₹8 per kWh for the entire 5000 kWh consumed from the grid, resulting in a total bill of ₹40,000.

- With net metering, your total bill is ₹16,000.

- Savings = Total bill without net metering - Total bill with net metering

Savings = ₹40,000 - ₹16,000

Savings = ₹24,000

Conclusion:

In this example, by participating in a net metering program, you saved ₹24,000 over the year compared to not having solar panels installed. This demonstrates the significant financial benefits of net metering for consumers in India, making renewable energy more accessible and affordable.