Definition:
A billing mechanism that allows solar energy system owners to receive credits for the electricity they add to the grid, offsetting their energy costs.
Key Components:
- Bidirectional Metering: Measures both consumed and exported electricity.
- Utility Credit System: Offsets energy costs by crediting excess generation.
- Grid Interconnection: Requires a connection between the solar system and utility grid.
- Regulatory Framework: Policies vary by country and utility provider.
Use Cases/Industries:
- Residential Solar: Homeowners reducing electricity bills with rooftop solar.
- Commercial & Industrial Users: Businesses leveraging self-generated renewable energy.
- Utilities & Energy Providers: Managing distributed solar generation.
Advantages:
- Lowers Energy Bills: Offsets power costs by feeding surplus energy to the grid.
- Encourages Renewable Adoption: Incentivizes solar investment for consumers.
- Supports Grid Stability: Helps balance peak demand periods.
Challenges:
- Regulatory Changes: Policy adjustments can impact financial benefits.
- Grid Capacity Limitations: Excess solar injection may stress grid infrastructure.
Related Terms:
Feed-in Tariff (FiT), Distributed Generation, Grid-Connected Solar
Example:
A homeowner in California with a 5kW solar system saved $1,200 annually through net metering credits.
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Synonyms:
Solar Net Billing, Grid-Tied Solar Credit, Renewable Energy Metering
