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Solar Net Metering Principle

Solar Rooftop Net Metering : Benefits ?

Rooftop Solar Photovoltaics – Net Metering System: Energy Security & Freedom.

Solar Net Metering Principle

How Solar PV on Rooftop Gets the term Grid-Tie & Net Metering Connection.

 

Today, Many People are adopting the concepts of a green,clean and sustainable lifestyle by moving closer to Alternate & Clean Sources of Energy like Solar Power, Wind, Bio Gas etc…. All this while still drawing power from Utility Supply aka Traditional Utility Power Grid, which is still running on Conventional Power Generation Methods namely Coal-based power plants, Hydropower plants utilizing Dams.

Connected to these Grid Supplies Utility Metering is done to keep track of the energy consumption by the consumer for the load connected.

 

Now, What is Net Metering or Grid Tie Metering for Solar Rooftop Power plant?

It is a billing arrangement that allows the consumer to sell excess energy to the utility company or buy deficit energy from the utility power company using a meter to track this energy exchange.

In other words,

 Solar Rooftop Net metering takes into account the difference of energy consumed by the grid & energy Fed back to the Grid from your Solar Power Plant on the rooftop of your own property.

 

Net metering Systems are subject to various contingencies put in place by the Utility companies & government to Protect the Interests of Parties Involved in the Business of Electricity, Due to High Investment Assets Put in Place for Long-Term Yields.

Namely due to Huge Setup costs incurred by these undertakings from 

GENCO’s = Generation Companies (owns Power plants/DAMs etc..)

TRANSCO’s = Transmission companies (owns Electricity Lines from Dams to cities) 

DISCOM’s = Distribution Companies ( buys power from Transco to their Sub Stations inside the City, Distributes Power to Consumers using  Grid Setup by them)

Look at this image for a good idea.

Power Industry Interaction

Power Industry major players and their interaction

 

Now, Possibilities for Net Metering Systems? 

CASE #1 

If the Generation from your Rooftop Solar Power Plant is more than the Required Load or more than what you can consume, The Excess Energy is Fed Back to Your Utility Supply Company (DISCOM) and the meter runs backward (only if it’s a Bidirectional meter) else you Get Metered using another Meter for Excess Energy Fed back.

The System owner is Credited for the Units that were Fed back into the System.

 

CASE #2 

If the generation of energy from your rooftop solar power plant is less than the required load, the deficit/extra energy is drawn from the main grid/ Utility power supply, and the meter, as usual, runs forward. System owner is charged the units that were consumed. 

 

In both these Cases, The System owner is charged for the difference of units Consumed VS units Fed back into the Grid as per Standard Retail Tariffs.

Note- A utility Company will never ever pay you for the Power you Supply them, you can only settle the Transaction in terms of your billed amount. 

also, in a grid-tie system, you will never be independent for the electricity bills, It can be Downsized to negligible amounts of INR 40/50 Rupees. 

Why do you ask? 

well, to explain in simple terms, you have opted for a Grid connection to your property, DISCOMs aka your Grid Supply utility company, took that request and layed down Electricity Lines & poles from their Nearest Sub Station to your house To cater to your Electricity needs, This Cost of New Wire, Poles, Transformer was never charged to you, Your Utility supply company took this heavy investment cost with a pinch of salt assuming you will be a good and loyal customer to their company and will continue to pay for electricity bills, and they will eventually be able to recover the amount they invested for you within a period of 20/30 years.

And Now You, get Enlightened about #climateChange #globalWarming and #SolarOcta and opt for #SolarEnergy 

You Cut into their Business model, namely Disrupt their way of doing Business, But then You are only able to Meet your Day Time Electricity Consumption using Rooftop Solar, and still use their Supply network for Night Time Load consumption. 

Whereas, for Institutional & Commercial Consumers, you’ll say that you only Consume Electricity at Daytime & have a Large Enough Roof Space Area, Free From Shadow, Ideal for Solar PV Installation, & Now you opt for Solar Rooftop Power Plant of Capacity Enough to Meet 100% of your Electricity Demand.

Now What?

well, now you still haven’t disconnected from the Grid Supply, but are able to Meet all your Demand independently, Consider the Cost Discom Put in to Bring Electricity to your Property with all those Poles, Transformers, and wires……..

Remember that? 
You are still enlisted on their company as a consumer with connection…

Until you have them connected to your property, no matter how many units you supply them back they will still Charge for Connected load supply as a minimal connection fee, for any day if you want to draw power from the grid – they have it arranged for you.

Benefits of Net Metering?

 Using a Net Metering Connection Comes with Following benefits:

  • Monetary Benefits- The owner is charged for net energy consumed from the utility grid, directly enjoying financial benefits by savings on your monthly electricity bills.
  • Batteryless systems-  This configuration is the Best, Excess energy is directly fed back into the Main Utility grid and deficit energy is directly drawn from the Supply Grid as and when needed. This also helps avoid the high upfront cost of Heavy batteries which were earlier used in Solar power systems to bring a balance & stability to the system.
  • Independence from backup systems- Due to Direct Switch Between Energy Sources and no dependency on backup systems.
  • Less or No Maintenance-  With No moving Parts involved in the rooftop solar power plant, no batteries, maintenance becomes next to negligible, except that you have to keep your solar panels clean from Dust and Bird droppings, Washing panels with water every 10-15 days is all you need.

 

Want to know more about Net Metering – Go through our whole blog Section for Interesting Reads on Solar Power! 

Search your State Solar Policy on our Knowledgebase page and read the criteria in your state for New Net metering connections.

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India Increases 2022 Renewable Energy Target to 227 Gigawatts !

India set what seemed like a lofty target of 175 gigawatts of wind and solar energy by March 2022. Few believed that was a practical target, but then India plowed forward and happily impressed the world. This week that Renewable energy target was increased to 227 gigawatts!

Currently, India has added a little more than 70 gigawatts of that goal. Assessing the progress to date on a linear scale, the trend would seem to indicate the country is behind. However, renewable energy growth is not linear.

SolarOcta Energy Services A Siemens SPV plant .

For a few years, renewable energy prices in India were rather high due to high finance costs. Now that those finance costs have come down substantially, renewable energy investment is accelerating. In a recent statement to the media, the Ministry of New and Renewable Energy (MNRE) wrote, “New opportunities have emerged — altogether a new business space has been created. Indian companies have begun to explore foreign stock exchanges as a source of funds. India is progressively becoming a most favored destination for investment in renewables.”

Of course, global prices for renewable energy have continued to drop as well, allowing this goal to be increased. R K Singh, Union Minister of State for Power and New & Renewable Energy, recently stated at a press conference, “India’s current renewable-based power capacity stands at 70 Gw, and we will cross the 175-Gw target well before 2022. We have new schemes like offshore wind, floating solar, which will help us over-achieve the current target.”

Should India reach this new goal, it will be only behind China and the US in terms of installed renewable energy capacity. This increased goal is perfect timing as it is expected that renewable energy growth in China may contract this year due to lower subsidies.

Energy demand in India continues to grow and renewable energy is allowing that demand to be met at the best price possible. Unfortunately, India continues to add thermal (fossil fuel) power each year, but the good news is its utilization is decreasing. With the old renewable energy target, thermal power plant utilization was expected to be 57%; with the new target, it stands to reason that will drop even further.

The Indian government is going all out to ensure renewable energy is integrated into the national grid and curtailments are minimized. According to the ministry, “We have waived the Inter State Transmission System charges and losses for inter-state sale of solar and wind power for projects to be commissioned by March 2022. This will encourage setting up of the projects in states that have greater resource potential and availability of suitable land.”

Every country can expect to benefit from this drastic investment in renewable energy target by India. Their additions will continue to drive down the cost of renewables. Consequently, we can expect to see more fossil fuel power plants across the world stranded. While it is sad to see that the current US government is taking a step backwards in regards to renewable energy, actions by countries like India can help pick up the slack. When the US political climate changes, renewable energy prices will be substantially lower and we can get on with the transition at a feverous pace.

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