Benefits of net metering for residential and commercial consumers

One of the major selling points of solar energy solutions is the fact that they provide energy and utility, allowing consumers to save big on their energy bills. There are other advantages as well, but the savings factor headlines the entire thing and is the main reason why people are so receptive to solar energy solutions and solar in general, especially in Pakistan. Net-metering is one such factor that allows consumers to double down on their savings and make the most out of their solar energy solution and their investment in clean, green energy. In this blog post, we will look at the many benefits of net-metering for both residential and commercial consumers.

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Net-Metering: What Is It?

Let’s start with an analogy. Suppose you use the grid for any utility, like gas or water. You pay for it based on your usage, and how much you use is what you are debited for. For example, if you use 10 liters of water a day, you’ll be debited for 10 liters. What will happen when you don’t use the said 10 liters and instead of using it, you route back the water through the main pipeline towards the water utility distributor? The logical answer is: you’ll be credited for pumping water back into the system, right? This is exactly what net-metering is.

Net-metering, therefore, at its core, is essentially you (the consumer) generating electricity that goes into the grid—not returning power, but generating power, which you might do through renewable energy sources like solar or wind power. It's important to be aware of this distinction: solar panels produce energy that is fed back into the grid; this power is not returned to the grid (as it would imply the power was taken from the grid in the first place).

How Net-Metering Works

Now that you understand the basic principle behind net-metering, let's look at how it works. Solar panels generate power for home consumption, which may or may not all be utilized, depending on the weather conditions. Excess power produced by the solar panels, if the right equipment has been installed along with agreements from the local DISCO, will then be fed to the grid, thereby crediting you for the power that has been fed back into the grid.

Payment for net-metering in a solar energy system works in the debit and credit mode, which means that you won’t get cash for the energy being generated into the grid. Rather, you will be credited for the energy that has been sent into the grid. These credits can be utilized during conditions where the solar panels aren’t generating much energy (during cloudy, rainy weather) but the energy requirement remains the usual.

What Are the Benefits of Net-Metering for Consumers?

There are several advantages of enabling net-metering for your solar energy system. Let’s take a brief look at each of them:

• Financial Incentive: Solar energy systems by default save you a lot of money in utility bills. With net-metering enabled, this can be further compounded. By selling your unused energy to the grid, you can reap credits from the utility company, thereby offering more saving potential and financial incentive.
• Reduces Bills Even More: Solar energy systems take the load off the grid, allowing you to tap into solar energy for your consumption requirements. With net-metering enabled, the excess energy is sold to the grid itself, reducing your bills even more. With the right system in ideal conditions, your bill can even be zeroed, with the utility company offering you credits over subsequent bills after net-metering.
• Reduces Transmission Losses: With net-metering enabled, long-distance transmission losses are no longer a problem. Simply enable it on your hybrid or on-grid solar energy system and experience seamless energy reliability at all times.

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For the best hybrid solar energy solutions and complete solar energy systems in Pakistan, your partner for complete energy efficiency is RS Energy, Pakistan’s best solar energy company. We have comprehensive solutions and offer NOC-based services that keep you energized and your solar energy system always at the peak of efficiency. Experience the best of solar with RS Energy.