Net metering is a concept that has been talked about extensively in the world of solar. But, what exactly does it mean for you and when will it come to India?
What is Net-Metering?
Net metering is basically you generating you own electricity and then feeding whatever you dont use into the existing grid. The policies in this differ a lot from region to region. There are two main benefits of net metering:
1. Feed Extra in to Grid: Whatever extra energy you produce, can be fed into the grid. This basically is significantly important because it allows you to bypass using battery bank to store energy that you dont consume for later. Batteries are expensive with high maintenance, net metering allows for a significant reduction in cost savings.
2. Switch to Grid when you use extra: Imagine that you have your own way of producing electricity; maybe a diesel genset or solar panels and one day you need extra electricity to power your new air-conditioner, but your generated electricity isnt enough. Net metering will allow you to take electricity that you are not able to cover from your system with grid electricity.
Ideally, net metering stands to benefit consumers substantially. Not only will you be able to save money by cutting the cost of batteries but you might also earn money by feeding extra electricity into grid.
How will you earn money? Most government policies give incentives for feeding electricity into the grid. So, lets say you have your own solar panels and you keep feeding energy into the grid, then you should actually get money for the amount of electricity you fed in.
What is Solar Net Metering?
Small scale or residential component of solar relies heavily on net metering. Net metering will reduce the cost of installing a solar system significantly because now you no longer need a battery bank. Also, net metering will allow you to earn money by feeding in the extra energy into the grid, this will bring the return on investment down significantly.
What's going on with Solar Net Metering in India?
First its important to understand what going around the world. USA has successfully deployed net metering in most states, resulting in a substantial increase in solar acceptance. However, it is coming under fire for not charging its users for infrastructure and it's maintenance. In India, no state has as of now rolled out net metering to a full extent.
1. Andhra Pradesh: NREDCAP/ APERC have policies to provide residential roof top net metering along with incentives. Govt. of AP also gives an additional subsidy on top of MNRE subsidy.
2. Gujrat: State Agency; GEDA is preparing to roll out net metering state wide in Gujrat.
3. Tamilnadu: TANGEDCO, has brought a commission for solar energy policy. However, net metering is yet to be adopted.
4. Other States: We will keep you updated on this page.
- Andhra Pradesh Solar Net Metering Policy
- Gujrat Net Metering Policy
- Tamilnadu Solar Energy Policy
- Karnataka Energy Policy
Image source: Apteva
See Saurya Answers for more details: https://sauryaenertech.com/answer/question/solar-net-metering-india
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