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In a solar powered system, usually following two types metering systems are involved:

● Gross metering
● Net Metering
In gross metering, entire energy generated by the solar PV system is fed back directly
into the utility grid. In this case, the owner gets incentives based on feed-in tariffs
proportional to the energy fed back to the grid.
However, net metering takes into account the difference of excess energy fed back to
the grid and total energy consumed from the grid by the system owner.

Net Metering

Net metering is an agreement that allows the solar PV system owner to sell excess solar energy to the utility company or buy deficit energy from the utility company using a meter to track this energy exchange.

Net metering is a billing mechanism that credits solar energy system owners for the electricity they add to the grid. For example, if a residential customer has a PV system on the home’s rooftop, it may generate more electricity than the home uses during daylight hours. If the home is net-metered, the electricity meter will run backwards to provide a credit against what electricity is consumed at night or other periods where the home’s electricity use exceeds the system’s output. Customers are only billed for their “net” energy use. On average, only 20-40% of a solar energy system’s output ever goes into the grid.

The customer’s utility bill is reduced by the number of Net Metering Credits, which correspond to the number of kilowatt hours (kWh) produced by the array offsite. The customer, in turn, pays the independent power producer for each Net Metering Credit at a rate lower than the value of the credit, thus saving the customer money.

KBSol Energetics will provide Net Metering as per your requirements.

Advantages of Net Metering:

The 3 most important advantages of net metering are: 

1. Financial benefit for the system owner

Since the system owner is charged for the net energy consumed from the utility grid, the owner gets financial benefits, i.e. If energy generation is less than energy consumed: owner pays just for the net amount. If energy generation is more than energy
consumed: the owner gets credit for excess generation.

2. Avoid the use of batteries

In a grid connected solar PV system, any excess energy generated can be fed back to local utility grid and can be taken back at later stage when required. Thus, there is no need to store the surplus energy in batteries for later use, thus, avoiding the heavy costs of batteries. Also, since batteries are eliminated, the maintenance costs of the system also reduce to a great extent. Batteries may be required only when there are frequent power fluctuations/outages. (please note, in a battery less grid connected system, if there is an power outage and the grid fails, your solar power system has to stop generating power to ensure safety of the wiremen working on the failed gridlines.)

3. Produce more today, use that tomorrow

Typically, a solar power system produces more energy in summer and comparatively less energy in winter, .i.e. If in summer, solar power generates 100 units and load requirement is 80 units, then 20 units can be fed back to the grid. In winter, solar power generates only 60 units and load requirement is 80 units, then 20 units can be taken from the grid. Thus, overall excess generation from solar power system is taken care of and net units consumed from the grid become zero.

Power Purchase Agreement

  • A power purchase agreement (PPA) is the energy source for the profitable business. Most of the top companies and business houses are placing PPAs at the center of their energy strategy.
  • PPAs create an energy delivery agreement between commercial & institutional (C&I) buyers and renewable energy project developers that allow the organization to lock in energy prices for up to 20 years. This is great news in a volatile energy market, and for organizations that are looking to swiftly meet their sustainability goals. With PPAs, institutional buyers get flexibility and creativity that traditional energy structures cannot provide.
  • You might not want to build your own solar plant, but rather buy just the electricity produced by the solar system. That way, you don’t have the upfront costs, construction and maintenance to worry about.
  • We, KBSol Energetics LLP will be happy to build a solar plant on your roof (or nearby) and sell you the power through a Power Purchase Agreement (PPA).

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