Net-metering is a concept which was developed in the year 1983, in the United States of America. It simply meant “To roll over any extra credit generated from renewables upto 40 kW, to the next month or to be paid excess.
Recently in 2014, the Ministry of New and Renewable Energy, India has introduced the Net-metering concept to avail similar benefits for generating energy from Renewable Sources.
In this scheme, specifically for Solar Rooftop plants, power generated from Solar panels during the day, is transmitted either to the house or to the grid via a bi-directional meter. If it is transmitted to the house, the loads are running on solar. If it is transmitted to the grid, your dependence on the Electricity Supply Company (ESCOM) is reduced.
By installing a Renewable Energy plant on your building, you become an Independent Power Producer. The benefits of being an Independent Power Producer is the Feed-in Tariff.
Feed-in Tariff is the per unit price of electricity that is generated in excess and sent back to the grid. “You Earn while the Sun and Wind does the work.”
In brief,
- Install Renewable Plant
- Become Independent Power Producer
- Generate excess energy
- Send excess energy to the ESCOM
- Get paid for the excess energy
- Don’t sweat for 25 years.
