Net Metering: What Is it?

What is Net Metering? Net Metering is defined as the energy offsetting of the energy produced and the energy consumed in the self-producer’s consumption facility and is one of the tools for promoting self-production and self-consumption with RES. The generating station can be installed either on the same site or adjacent to the consumption facility, and the power generation systems can be located on buildings or on the ground.

The process begins with the installation of PV panels, typically on the roof or another suitable area of a property. These panels capture sunlight and convert it into direct current (DC) electricity. This DC electricity is then passed through an inverter, which converts the DC electricity into alternating current (AC) electricity. AC is the standard electrical current used for residential and commercial purposes. Your property then uses this AC power for its electricity needs.

Some PV systems also include a battery storage system. This allows excess power to be stored and then used during peak usage times or when the PV panels aren’t generating electricity, such as at night or during periods of poor weather.

The advantage of Net Metering is the ability to offset the cost of electricity that you consume from the grid with the electricity that your PV system feeds back into it. This means that you only pay for the net amount of electricity used over a given period. This can result in significant savings on your energy bills. The settlement of the energy offset takes place every three years. In particular, in the event that the energy produced is greater than the energy consumed, the excess energy is channeled into the grid and recorded on the meter. Therefore, the debit to the Actual bill is zero and the excess energy is credited to the next bill. This process takes place for up to 3 years. After clearing the three years, the excess energy is not credited to the next bill and the process starts from scratch.

In the event that the installation space of the photovoltaic station is not sufficient, there is the option of Virtual Net Metering.

At MEGVA Energy, we provide comprehensive Net Metering solutions. From installing high-efficiency PV panels and inverters to integrating grid-connection and optional battery storage systems, we’re committed to helping you maximize the benefits of your solar investment. Harness the power of the sun, reduce your environmental footprint, and gain independence from fluctuating energy prices with our specialized services.