Solar Net Metering.
It is an agreement that allows the solar PV system owner to sell excess solar energy to the utility company or buy deficit energy from the utility company using a meter to track this energy exchange.
If at any moment of time, if solar energy generation (kWh) is less than the load requirement at that time, the difference of energy is taken from the main grid and the meter runs forward, as usual. In this case, the system owner is charged for the units (kWh) consumed from the main grid. Eg. During early morning or during late evening/night.
If at any moment of time, if solar energy generation (kWh) is more than the load requirement at that time, the excess solar energy is fed back to the main grid and the meter now runs backward. In this case, the system owner gets credit for the units (kWh) fed back to the main grid. Eg. During peak sunshine hours (afternoon)
How does Net Metering Work?
Solar power systems are connected to the utility grid via the customers’ main service panel and metre. When more power is generated than is required at the site, excess electricity is returned to the grid via the power metre, reversing the metre from its usual direction. To take advantage of net metering a bi-directional metre is required. The customer pays the “net” of both transactions because the metre works in both directions. One way to measure power purchased and the other way to measure power returned to the grid.