What is the mechanism of Net-Metering? How it Work?

Your solar panels are capable of producing plenty of energy during the day—even when you aren’t home to use it. But the solar panels don’t generate energy at night when you use more power. To overcome this problem we use batteries to store extra energy (Off-grid or Hybrid solar systems). But what if your panels are producing way more power than what your household could use in a day?

With net metering, you can exchange your excess power for credits from a utility company. Net metering is a mechanism that credits solar energy system owners for the electricity they send to the grid. These credits can be used whenever you need to withdraw power from the grid. In this way, net metering helps you store your excess power, in the form of credits, for any unfortunate time when your solar system is not able to produce enough energy.

If you’re planning to go Solar, this article will help you understand more about net metering and its advantages.


Net metering keeps your solar system connected to the grid so that you can draw or trade power according to your requirement. Secondly, a bidirectional meter is used to measure the energy you produce and utilize. If your solar system is generating excess energy, the two-way meter will run in reverse and send that energy back to the grid. Finally, the utility company will give you credits in return for your excess energy.
Net metering is a course of action that lets you attain credit for the solar electricity you produce but don’t use right away. If you are aware of how solar energy works and are thinking of switching to solar, the first question that pops up in your mind is how one can keep the house powered up during non-sunny days. This is where the concept of net metering arises. Your solar panels will make ample electricity when the sun is shining at its full power during the day. That electricity is either stored as DC in batteries or converted to AC through an inverter. If your solar system is generating units of electricity more than the units that are being consumed, your electric meter will start running in reverse and send the excess units back to the grid. In exchange, for the extra units that are being exported to the grid, your utility will give you credits on your electricity bill. Also, at night when it’s dark, those units can be consumed and there will never be a blackout at your residence.

In September 2015, NEPRA issued the regulations that all DISCOs can purchase extra units of electricity produced by the solar systems of customers and adjust them against the units consumed from the grid. After the issuance of these regulations, customers found numerous benefits of the net metering mechanism. Firstly, it reduces your electricity bills drastically. Then you will also save energy since by generating energy through solar panels, you will become more energy independent by relying less on non-renewable resources. Lastly, you are providing power to the community and in short, contributing towards saving power.

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