The net-metering system helps solar consumers reduce their electricity bills. In net metering, when the solar system produces electricity, electricity first goes to the consumer’s home load, only then does the excess power go to the local power grid.
When the load of the consumer’s house increases and more power is required, electricity is imported from the local power grid. In this process, the consumer uses a bi-directional meter for measuring the exported electricity to the local grid and the imported electricity from the local grid. At the end, when the power consumption bill is generated, if the exported electricity is more, then the consumer gets credits for the excess energy injected into the grid. This can be carried forward to the next month or reimbursed at a rate provided by the state authority. & if the imported electricity is more, then the consumer will pay the bill for the excess amount of consumed electricity at the same rate provided by the state authority.
In net metering, the consumer uses the local grid as battery storage. which can be used to stabilize the solar energy demand and provide energy independence and sustainability.
As we know, tariffs & policies are different in every state, it makes solar a workable option at one place and a non-workable option at another. For applying net-metering policies successfully, the tariffs and policies must be market-driven rather than regulated.
One more issue in net metering policy, the solar system is connected to the grid, if the grid turns-off, the consumer cannot use the electricity generated by the solar system as the grid-tied inverter turns off the supply of power from the PV system.