As solar energy adoption grows in India, many homeowners and businesses are looking for ways to maximise their savings. One of the most effective ways to do this is through net metering. This system allows users to send excess solar energy back to the grid, earning credits that reduce electricity bills. Net metering, combined with government subsidies like Surya Ghar Yojana, makes solar energy an even more attractive investment.
What is Net Metering?
Net metering is a billing mechanism that lets solar panel users export excess electricity to the grid in exchange for credits. When a solar on-grid system generates more power than a household or business consumes, the surplus energy is sent to the grid. At times when the system produces less energy than needed (such as at night), the consumer draws electricity from the grid. At the end of the billing cycle, the consumer is charged only for the net electricity consumed (imported power minus exported power).
How Does Net Metering Work?
Net metering is a system that allows solar panel users to send excess electricity back to the grid and receive credit, reducing their overall electricity costs. The process works through four key steps. The first step is solar power generation, where solar module panels capture sunlight and convert it into direct current (DC) electricity. However, most appliances run on alternating current (AC) electricity, so a PV inverter is used to transform DC electricity into AC, making it suitable for home or business use.
Next is consumption and export. During the day, when solar panels produce more electricity than is needed, the excess power is automatically sent to the electricity grid. Instead of going to waste, this surplus energy helps power nearby homes and businesses. At times when solar production is low, such as at night, electricity is drawn back from the grid to meet energy needs.
A billing adjustment takes place to ensure fairness. The electricity provider tracks the amount of power sent to the grid and subtracts it from the power consumed. The difference is called net consumption, which determines how much the user is billed. If more energy is exported than consumed, the excess credit may carry forward to future bills, depending on state policies.
Finally, net metering results in a reduced electricity bill. Instead of paying for the full amount of electricity used, the consumer is charged only for the difference between the energy taken from the grid and the energy sent back. This leads to significant cost savings, making solar energy a smart financial investment for homes and businesses.
Financial Benefits of Net Metering
Net metering helps reduce electricity costs and makes solar energy a profitable investment. Here are some financial benefits you can consider:
- Lower Electricity Bills: Households and businesses can significantly reduce their monthly electricity expenses.
- Faster Return on Investment (ROI): A well-sized solar installation can pay for itself in 4-5 years through savings.
- Additional Earnings: In some states, consumers can earn money if their solar generation exceeds consumption.
Government Subsidies and Schemes
The Indian government is actively promoting rooftop solar adoption through subsidies. Under the Surya Ghar Yojana, homeowners can get up to Rs. 78,000 subsidy for installing solar panels. The MNRE Grid-Connected Solar Program also provides financial incentives to residential users.
Why Choose Mahindra Solarize?
Mahindra Solarize provides high-quality solar installations, ensuring maximum efficiency and savings. With expertise in solar ground mount and rooftop solar solutions, the company helps customers benefit from net metering, government subsidies, and long-term cost savings.
With rising electricity costs, switching to solar with net metering is a wise financial decision. It lowers your electricity bills and contributes to a greener future. Partnering with trusted brands like Mahindra Solarize ensures hassle-free installation, maintenance, and long-term performance.
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