Net Metering is one of the best things to happen in the Power Sector. Net Metering gives residential and commercial users an opportunity to generate their own power without having to depend on the grid, as well as selling the excess power generated to the state. Net Metering measures the power flowing in the 2 directions. Most countries including India are enacting legislation to encourage this new trend, which reduces the dependency on hydro-electric or petro-fueled power.
As the name implies, Net Metering is essentially a billing mechanism used in conjunction with Solar Power. In summer months, in night time, during holidays, or whenever the consumption of power by the home or commercial location is less than what is generated, the excess power generated is fed back to the grid. The Net Meter then monitors power flowing in both directions and bills the customer only for the Net power consumed from the grid. According to a study conducted in the US, a 4KW Photovoltaic system in a home can feed as much as 4911KWH of power every year to the grid, thus saving the owner as much as USD 380 on the power bill every year.