NET METERING AND GROSS
METERING IN INDIA
SUBMITTED BY-
VISHAL KUMAR -
2019UEE1271
BATCH- E 2
CONTEXT
Generating electricity is easier than ever.
Drastic price decline in the last decade, combined with policy incentives for
rooftop systems, have allowed consumers to install solar system on their
rooftop.
It is expensive to store electricity, systems are often connected to the grid so
that surplus can be exported to the grid and deficit can be imported from the
grid.
Two arrangements are often defined by governments when designing the
regulations for solar rooftop system –
Net metering.
Gross metering.
NET METERING AND IT’S BUSINESS MODEL
Net-metering is a concept wherein the solar power generated at a site, is first consumed by
the load demand at the site and the excess solar power (if any) is then exported to the grid.
The user consumes electricity generated by the rooftop solar system and excess electricity is
injected into the grid.
When solar panels produce excess power, that power is sent to the grid. And this power can
be ‘taken back’ when the solar plants are not functioning – example, during the night.
When a unit of solar energy that has been ‘net metered’, the bi-directional electricity
meter will run backwards. Customers are billed only for the ‘net’ energy use.
How does Net Metering Work?
In case, the load demand is more than the solar power generated (i.e. during the cloudy
days / night), the excess power required is imported from the grid. The consumer, in
this regard, has to pay only for the 'net' units imported from the grid.
Mathematical notation,
Net units = Imported units from the grid - Exported units to The grid.
(1 unit = 1 kWh)
Bi-Directional Meter
A bi-directional meter is used to record both energy import (from the grid to
consumer) and energy export (from the consumer to the grid).
This meter does not record the total power generated by solar, but just the excess
power exported to and imported from the grid.
CASE STUDY-
Case 1
i. Consumption: 200 units
ii. Solar Power Generation: 175 units
The difference of 25 units is imported from the grid.
Here, the consumer pays for the 25 units of power imported from the grid at the retail tariff rate.
Case 2
i. Consumption: 120 units
ii. Solar Power Generation: 160 units
The difference of 40 units is exported to the grid.
Here, the exported power is more than the power imported from the grid, this excess 40 units is
carried over to the next billing cycle.
NET METERING IN INDIA
17 States are using net metering
19 States are using both net and gross metering
GROSS METERING AND IT’S BUSINESS MODEL
In gross metering, total electricity generated by the solar system is injected into the grid, and
consumer imports electricity from the grid for consumption at retail tariff.
At the end of the settlement period, consumer is compensated for the electricity exported to the
grid at Feed-in-Tariff (FiT), as determined by the state commission.
In this case, the energy generated from your system is not consumed by you in any capacity.
Once the energy is generated from your solar system it is transferred to the grid, and the grid
further sells the energy to the power consumers at a certain tariff rate.
How does Gross Metering Work?
In gross metering, you won’t be able to directly use any of the power generated by your rooftop system.
More beneficial for those property owners who have ideal spaces and surplus generation.
The power is directly exported to the grid through a separate circuit, and the power for your home comes
from the grid.
There are two circuits here, there will be two meters: one for your consumption of electricity and the
other for the production.
Your billing for consumption will continue to be the same as it always was, and you will get paid for the
electricity you produce separately
CASE STUDY
COMPARISION BETWEEN GROSS AND NET METERING
CONCLUSION
Gross metering is slightly more beneficial than Net Metering, when it comes to
financial benefits.
The ROI from Gross metering arrangement is fixed for the next 25 years, as well as the
amount of energy to be generated and exported is fixed, while in the case of Net
Metering, the returns thoroughly depend upon the savings of the electricity.
If we talk about the long term benefits, Net Metering definitely has the upper hand.
In Gross Metering, you will be billed for your cumulative electricity consumption, and
you will be paid for the “gross amount of electricity” you pumped into the grid.
That means you’ll be billed twice. But in Net Metering, only one bill is generated
which gives a measure of both the total consumption and export done by you.
REFERENCES
https://india-re-navigator.com/rooftop/policy-compendium
https://www.psrindia.com/Upload/Resource/Brochures/Document/PSR_Stat
e-wise%20Rooftop%20Solar%20Regulatory%20Framework20210401182013378.p
df
https://www.ecosoch.com/net-metering-vs-gross-metering-basics/
https://www.bijlibachao.com/using-renewables/net-metering-policy-for-roof
-top-pvs-in-various-states-in-india.html
https://www.tndindia.com/gross-metering-is-a-monopolistic-policy-artha-ene
rgy-resources/
https://www.thehindubusinessline.com/specials/clean-tech/why-gross-meter
ing-for-rooftop-solars-is-a-problem-for-sellers/article64557888.ece
THANKING YOU
