With solar becoming extremely popular not just in the industrial segment but the residential as well, there is a dire need for people to know about one of the most important government incentives – Net Metering.
Net metering is a unique metering and billing agreement between power utilities and their consumers, facilitating the connection of renewable energy system to the network. It allows the consumers to export the surplus power to the grid and helps in reducing the electricity bills. It is extremely useful for consumers whose energy consumption on certain days is quite low as compared to the other days.
How solar net metering works?
In grid-connected solar power systems, the DC output produced by the solar panels is converted into AC output by a solar inverter. This output is connected to the distribution board then consumed by the appliances. If the solar energy produced is more than what one consumes, the excess is sent to the distribution network. If the solar energy produced is less than the total energy required, the shortfall energy is supplied by the grid.
Advantages of Net-Metering
- Avoid the use of batteries
- Financial benefit from the system’s owner
- Produce power that can be used later
Net-Metering Policy in Delhi
It’s been a while since net-metering policy in Delhi has been executed. It was implemented in 2014 with aim of promoting the use of renewable energy generation for self-consumption of the user.
Highlights of net-metering in Delhi –
- The connectivity of the renewable energy system will be on first come first serve basis.
- The minimum capacity that must be installed is 1 kW.
- The capacity of the solar power system which can be installed without extra charges will be equal to the sanctioned load of the premises of the consumer.
- The availability of the transformer capacity for net-metering connection can be accessed on the distributor licensee’s website. The total capacity will not be less than 20% of the rated capacity of the transformer.
- In situation when a consumer is willing to install a system higher than the premises sanctioned load, the consumer then needs to pay ‘Service Line cum Development’ charges to enhance the sanctioned load.
Only net-metering policy is applicable in Delhi. It does not abide by the gross metering parameters. Also, there is no cap on the solar power generation for you to be eligible to participate in the net-metering.