Net metering is a way of billing in which people with solar energy systems get credits (called "feed-in tariffs") for sending extra power to the grid. A net meter keeps track of how much energy goes from a solar energy system to the grid and back again.
When you decide to put a solar power system in your home, you'll have to below options:
A system that isn't connected to the grid (standalone system)
One that is hooked up to the grid
Below are the reasons when net metering comes into play if you connect your system to the grid:
If you produce surplus energy
When a solar energy system makes more energy than is needed, the extra energy goes to the grid, and your meter spins backward.
If your energy consumption is higher than what your solar panel system produces.
If your solar energy system doesn't produce as much energy as you need, your home draws the extra energy it needs from the grid making your meter spin forward, incurring charges.
How does net metering work in Australia?
In a nutshell, net metering allows you to receive credit for the solar energy you send back to the grid and offsets the electricity you will eventually purchase from the utility. This enables you to receive the full economic value of all the solar energy your solar panels create. As a result, your monthly electric expenditures will be minimized if your solar panel system is sized correctly.
When your solar panels aren't producing throughout the night, you draw power from the grid, which causes your electric meter to spin again. The phrase "net metering" actually refers to a billing method where the utility computes your final bill by netting the amount of electricity you used and sent to the grid after the billing period.
Benefits of net metering?
Huge savings on utility bills
Reducing utility costs is net metering's significant advantage for solar homeowners. Net metering can save tens of thousands of dollars throughout your solar panel system's lifetime. However, net metering cannot eliminate some fixed charges found on most electric bills.
Read more information Click here