Net Metering

  

Net Metering   is   a   new   concept   where   an instrument  which  has  a  special  metering  and billing  agreement  between  utilities  and  their customers,  facilitates  the  connection  of  small,renewable energy-generating systems to the power grid. This new  programme  is  being  developed  to  encourage  small-scale  renewable  energy  systems  to  ensure  that  customers always  have  a  reliable  source  of  energy  even  when  their renewable  generators  are  not  producing  energy,  and  to provide substantial benefits to the electric power-generating system as well as the environment.

When  a  net  metering  client’s  renewable  generator  is producing more power than is being consumed, the electric meter runs backward generating credits. Whenever the net metering customer uses more power than is being produced, the meter runs forward normally. Net metering customers are charged only for the net power that they consume from the electricity service provider that has accumulated over a specific  period.  In  other  words,  if  their  renewable  energy-generating systems make more electricity than is consumed, they  may  be  credited  or  paid  for  the  excess  electricity contributed to the grid over that same period. Net metering is  also  a  way  to  increase  the  energy  in  the  power  grid  to keep  up  with  increase  in  demand  during  peak  power  use

Although net metering system is a new concept in India, this  programme  is  successfully  working  in  countries  like Australia,  Canada,  Italy,  Spain,  Denmark  and  United States.  In 2002, Thailand was the first country to initiate the  first  net  metering  policy  in  the  developing  world.  The Very Small Power Producer (VSPP) regulations were aimed at encouraging the use of small scale renewable generation almost under 1 MW.  The Thailand Government mandates the  purchase  of  any  surplus  electricity  generated  through renewables at rates which are adjusted every three months.