What is Net Metering ?

Solar panels only generate electricity when exposed to sunshine, with the most energy production around noon. For example, solar owners away at work may not use all the energy their panels produce during the day, creating a surplus. Solar Net metering is a billing mechanism that credits solar energy system owners for the electricity they add to the grid. For example, if a residential customer in Lucknow has a PV system on their roof, it may generate more electricity than the home uses during daylight hours.                                                                                                                                                                                                                        If the home is net-metered, the electricity meter will run backward to provide a credit against what electricity is consumed at night or other periods when the home’s electricity use exceeds the system’s output. Customers are only billed for their “net” energy use. On average, only 20-40% of a solar energy system’s output ever goes into the grid, and this exported solar electricity serves nearby customers’ loads. Net metering is a billing method that measures your excess energy production in exchange for credits to subtract from your next monthly bill. In other words, you can sell surplus solar energy to the local electric company.  Any excess electricity generated by the solar system is fed back into the grid, and the owner receives credits for the surplus energy. These credits can then be used to offset the energy consumed by the grid when the solar system is not producing sufficient electricity, such as during nighttime or cloudy days.

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