A Comprehensive Guide to Understanding & Applying for Net Metering
When you purchase a solar panel or PV system, you have the option of installing an on-grid or off-grid solar system. An on-grid system is connected to a local grid owned by the state, while an off-grid system is connected to a battery.
Why Is This Important?
Electricity is also a substance. It needs to have storage space. Either you could store the electricity not used in a battery you own or give it away to the government. The government figurately stores the current in a utility grid or re-allocates it to consumers wherever needed.
A Utility Grid is a storehouse for electric current. It is a place where the state generates and distributes electricity. They can use the electricity you transfer to power other houses. For this, they will reward you in the form of credits. But to avail of this transaction, you need to apply for Net-Metering.
Net-Metering Mechanism
Your solar panel absorbs the sun's energy and converts it into electrical energy in the form of DC current. Since DC current is unusable, a converter turns DC into AC current and sends it to the main switchboard. It then gets distributed to all your load-bearing appliances. Any leftover electricity is sent to the local grid. An instrument called the bi-directional meter tells you exactly how much current got exported.
Sometimes, your solar system may not produce enough electricity. In such cases, the state imports the difference and adds the balance to your next electricity bill.
Net metering works both ways -- the meter shows what the state owes you and what you owe to the state in the form of electricity rates KW per hour.
If you export more than you import, then the state rewards this positive difference with credit. You will not get any cash, just lower bills in your next cycle.
If you export less than what you import, the state charges this negative difference by raising your bill. The amount lowered or increased depends on the per-watt charges described by the DISCOM of your area.
How Does This Help?
It reduces your electricity cost significantly! If in this month you exported electricity, then in the next month, your electricity bill reduces automatically. In case you need imported electricity in the following months, you will only have to pay the difference, not the whole amount.
How to Apply for Net Metering?
- **First Step- **
** **Fill out the online application form found on your region's DISCOM website. Or you can approach and apply through the Executive Engineer, a nodal officer, of your state's electricity provider.
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Recent electricity bill
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Technical details of the solar system and its components
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Registration receipt for proof
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For an application filed by a partnership firm only: General power of attorney and a copy of a resolution signed by the board of directors.
- Second Step-
A Jr. Engineer may verify whether your solar system can be connected to the local distribution network (utility grid) based on certain parameters. To ensure no disturbance to the electricity generation and distribution practices, they impose a certain limit on how many solar panels are allowed connections to their distribution transformer capacity.
The Jr. Engineer verifies if your system falls under the limit. Also, your system should not exceed the sanctioned load limit. If it does, you will first need to apply for load enhancement before applying.
They will let you know anywhere between 7 -15 working days. If accepted, you will receive a Technical Feasibility Intimation letter.
- Third Step-
You can now install the solar panel. You can take six months to purchase and install a solar system. Once installed, you are required to send a letter stating your readiness to the nodal officer (Executive engineer) of your state electricity provider.
- Fourth Step-
Within 10 days of receiving the letter, your solar system will go through some safety checks. Depending on the capacity of your PV system, either a DISCOM inspector or any state-official inspector may pay a visit. You will receive a certificate verifying your system's safety.
- Fifth Step-
The state electricity provider or DISCOM officer will install a bi-directional service meter for your system and remove the existing service connection meter for a charge.
It's a simple but time-consuming process. But once done, your electricity bill payment will benefit hugely from this!
Reference links:
https://www.loomsolar.com/blogs/collections/how-to-apply-for-net-metering-state-wise-procedures
https://www.seia.org/initiatives/net-metering
https://www.energysage.com/solar/solar-101/net-metering/
https://www.mahadiscom.in/consumer/wp-content/uploads/2018/09/Anexure-Procedure-for-net-metering.pdf