The net metering policy makes solar energy more attractive and affordable for users. It not only brings down the energy cost drastically, but also helps create small power generation units in almost every nook and corner of the country. Here are some of the benefits of net metering policy:
What Net Metering does is that it gives customers an opportunity to generate clean and efficient electricity. During sunlight hours, most solar customers produce more than they can consume – this surplus is exported to the grid reducing electricity bills.
1. Value addition to DISCOMs: One of the biggest advantages of Net Metering is that it helps trim peak load demand during the day and reduces load shedding. Further it helps State DISCOMS reduce their T&C wheeling losses.
2. Value addition to end-users: Net Metering helps corporates, industrial establishments and educational research institutes save money on electricity bills. The money saved can be invested into in their existing business or can be used to improve educational infrastructure in universities and schools.
In Net Metering, the grid acts as a huge ‘bank’ and ‘stores’ your extra solar power for times when you don’t have enough. This eliminates the need for an expensive battery bank. A small battery backup system should be sufficient for power outages.
The major components you need for a grid-tied net metering system are solar modules, that produce power and an inverter that converts the DC power from the solar panels to the standard AC power produced by the utility. Both these components require little maintenance because there are no moving parts. Modules have a long warranty and are manufactured from a semiconductor material that is usually protected by a tempered glass front.
Net metering records the energy generated and sent to the grid and consumed from the grid, providing vital data. Your electricity bill is the net difference of the two, accounting for any time of use plans you might select and other charges.
As solar energy systems are connected to the state’s distribution system, the demand for electricity generated by traditional methods will reduce – thus preserving the environment.
Major challenge with net metering policy in India is that:
While many states in India have created net metering policies, the implementation has almost been universally slow and there are arbitrary constraints and limits. Tamil Nadu does not allow net-metering for HT power consumers i.e. large off-takers of power and in most states, there is a cap on the size of the solar plant that can be availed under net metering.
“Many industries have lots of idle space on roofs which can be used for solar plants. But very few do so because of several issues, one of them being unfriendly net-metering rules. Rooftop solar sector has not really taken off mainly due to the poor implementation of net metering policy,” says Kuldeep Jain, Managing Director, CleanMax.
Despite these challenges, CleanMax has helped 130+ corporates in India in their solar journey - making us India’s leading Solar Company.