May 20, 2025 / Solar Inverters

What is Net Metering in a Grid Tie Solar System?

Ever imagined your electricity meter running backwards? Or better yet, the idea of earning from your electricity bill? That’s exactly what net metering makes possible.

If you have a grid-connected solar system at home, you’re not just using the sun to power your appliances, you’re also getting rewarded for the extra energy your system generates.

How Does Net Metering Work?

Think of it like this. Your rooftop solar panels generate electricity when the sun is shining brightly. If you’re not using all of it at that moment, the extra electricity does not go to waste. It flows back to the main electricity grid.

Now here’s the best part. For every extra unit of electricity your system sends to the grid, you earn credit from your electricity provider.

Later, when your solar panels are not producing enough power, like at night or on rainy days, you can use those credits to draw electricity from the grid. And instead of paying money, the credit covers your usage.

It’s like giving and taking, but with sunshine.

Net Metering in Simple Terms

Let’s take an example. Suppose your solar system generates fifteen units of electricity in a day. You use only ten units at home. The extra five units are automatically sent to the grid.

That evening, when your panels stop producing electricity, you use six units from the grid. Out of those six, five are covered by the credits you earned during the day. You only need to pay for one unit.

That’s how your solar panels help reduce your bill, sometimes to zero, depending on your usage and system size.

Why Net Metering is a Big Deal in India

For Indian homes, where electricity bills can be a major monthly expense, net metering is a practical way to save money while doing good for the environment.

• You reduce your power bill
• You avoid wastage of solar energy
• You make the most of your rooftop investment
• You contribute to India’s clean energy goals

And the best part? It’s all automatic. Once your system is connected and net metering is activated, everything works in the background without you having to lift a finger.

What You Need to Get Started

To enjoy net metering benefits, make sure your solar system is:

• Connected to the main electricity grid
• Installed by an approved vendor or company
• Registered with your local electricity board
• Equipped with a bi-directional meter (which measures both incoming and outgoing electricity)

You may need to apply for net metering through your electricity board’s portal. The process is different in each state, but the overall idea remains the same, your meter tracks how much power you send and how much you take, and your bill shows the balance.