Net Metering The Economics Of Power Consumption Part 1

When it comes to net-metering arrangements, the focus lies in the fact of self-sustenance of the electricity generation system used by the consumer. Now how this is taken care of is a major point of discussion of this post. Well, the mechanism work in a way that the excess/surplus energy is sold to or banked with the local utility. Thus, it won't be outlandish to say that the NET METERING brings together the elements of captive consumption while exchanging power with utility.

Meanwhile, for those of you still unaware about the term, NET METERING is an electricity policy formulated for the utility customers who operate their own on-site "self-generation" power systems like photovoltaic systems. The PV systems are connected to the utility grid via the customers' main service panel and meter. And, during the process of power generation if more power is generated than is needed at the site, the excess electricity is returned to the grid through the power meter while reversing the meter from its usual direction. Thus we can say that as a result of the meter working in both directions, there are two ways to measure the power purchased by the consumer. One way to measure is when on-site demand is greater than on-site power production while on the other hand, we can measure the power returned to the grid. So in the end the customer gets to pay the "net" of both transactions.

At the same time, it should be understood that adopting net metering models call for distinct and customized policy support from the Government for various benefits, incentives and subsidy mechanisms.

While the Jawaharlal Nehru National Solar Mission (JNNSM) opened up the solar electricity sector in India, the focus has been on the large-scale grid-connected power plants. This can be understood in the fact that the fall in prices of solar photovoltaic (PV) modules and balance of systems (BOS) in comparison to the rising tariffs of certain consumer categories in India has resulted in making the grid-connected solar Rooftop PV (RTPV) systems economically viable.

What is worth mentioning is that solar Rooftop PV (RTPV) systems can offer substantial benefits in terms of providing peak power supply, reducing T&D losses, improving tail end voltages, and creating local jobs. Considering the existing governance and M"> 'NET METERING' to encourage a power generation system in place geared towards self-consumption together with the provisions of grid inter-connection and energy banking facilities from the local utility.

The post Net Metering - The Economics of Power Consumption (Part 1) appeared first on Jakson.

Source: bioenergysystems.blogspot.com