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All you need to know about Net Metering

Turning to green and unconventional sources of energy is a huge step towards conserving the environment, and is now, the need of the hour. Non-profit organizations, research institutes as well as governments across the globe are working towards spreading the awareness and incentivizing the adoption of renewable sources of energy. In line with the same efforts, governments across various regions have introduced the concept of Net Metering for green energy generation and usage.

With Net Metering reap the benefits of going solar even when the sun is not shining.

Clients who are contemplating to #GoSolar, when they approach us, often have two common queries:

  1. What happens when the electricity generated by the solar panels is higher or lower than our consumption?
  2. How do we get power at night time or when it is cloudy?

Are you planning to #GoSolar but fiddling with the same questions in your mind? The answer to your queries is Net Metering. Read on to know what is net metering, how it works and the benefits of Net Metering when you turn to renewable energy sources.

What is Net Metering?

The benefit of living in India is that we have abundant solar energy at our disposal across the nation. However, this still doesn’t put to rest the dilemma among people considering solar as a renewable energy source:

In the daytime, the solar plant may end up producing more energy than required; while at night time or cloudy periods, when you need energy to power lights, machines, air-conditioners, etc., there is no sunlight.

To address this dilemma the government introduced the concept of Net Metering. Net Metering is essentially an instrument that helps your renewable energy plant stay connected to the main power grid. You can send excess power to the grid and consume power from the grid when required. A special metering and billing arrangement is made between your energy generating system and the utility. Thus, Net Metering allows you to consume the solar energy that the plant produces, conserve any excess energy produced and simultaneously stay connected to the grid at all times.

So, how does it work?

As we mentioned earlier, with Net Metering your renewable solar energy-producing system stays connected to the main power grid always. Now, in the daytime, while the system is producing solar energy, any excess energy that is not consumed by you is sent to the grid and your meter runs backward; meaning you get credit units to use when required. The grid buys the excess energy sent to it from your plant at APPC (Average Power Purchase Cost) rate.

Again, at any point in the day if your energy consumption is higher than the generated amount or at night when the solar plant is at rest, thanks to Net Metering, you can use electricity from the grid.

The difference of the units credited and units consumed will be billed to you.

Thus, with Net Metering, you will pay only for the net power that you consume from the electricity service provider that has accumulated over a specific period of time.

What are the benefits?

One of the most significant benefits of Net Metering is the opportunity to reduce your energy consumption costs. Between the units of solar energy credited to the grid and the units bought from the grid, you pay only for the net power you consume.

Secondly, if your solar plant generates electricity higher than your consumption, you stand a chance to get paid for the excess energy sent to the grid via Net Metering. The grid purchases any excess energy produced by your plant at APPC rate.

Last but not the least, having Net Metering installed with your solar plant you can contribute towards an environmentally friendly and power efficient electricity evaluation system.

Thus, Net Metering makes for an easy option to #GoSolar, stay connected to the grid and reduce your energy consumption cost. It gives the assurance that you will always have a reliable source of energy. Simultaneously, it provides substantial benefit to both the electric power-generating system as well as the environment.

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Top 5 Benefits of #GoingSolar for Industries and Commercial Organizations

More than at any other time in the history of the human race, the demand for power is at its highest in today’s times. The soaring prices of conventional sources of energy and the environmental concerns have amounted to businesses opting for alternative energy sources. Among green and renewable energy sources, for commercial and industrial organizations in Gujarat, Madhya Pradesh and Rajasthan, going solar is not just a sustainable, but also a profitable choice. The Power is clean, unrestricted and has numerous financial advantages.

According to Mercom speculations, solar installations would have reached approximately 10 GW in 2017 making India one of the most important solar markets in the world, after China and the United States; with large-scale projects under the National Solar Policy (NSM or JNNSM) leading in the states of Tamil Nadu, Gujarat, Telangana and Karnataka.

Still deciding if Solar is for your business or not? Here’s a list of top five benefits to help you make the right choice:

  • Reduced Power Costs: Solar Power vs. Grid Electricity

This is a given! Solar power won’t just decrease but almost eliminate your organization’s electricity usage bills. The cost of power per unit is significantly lowered from your current energy costs. Investing in a solar power system is almost like prepaying for your energy consumption at a fraction of the cost. Greater savings is always good for business – big and small.

  • Attractive and Real Return on Investment

The Government of India has been making efforts on its part to promote sustainable energy production and consumption, and safeguard the future of the earth. The Central Government (MNRE) provides 30% subsidy to Non Profitable Organizations as an incentive to boost solar production. Furthermore, according to the solar policy of each state, Gujarat permits 50% solar installation of contract demand load, Maharashtra allows 100%, Rajasthan allows 80% while Madhya Pradesh has no limits on solar capacity for private projects. Investing in solar power generates both long-term savings and quick payback. You would attain your ROI within 4-6 years of investment. Accelerated Depreciation Benefit

One of the major incentives of solar power is the tax relief due to higher rate of depreciation that businesses can avail under section 32 of Income Tax act. As per the act, the normal depreciation rate for plant and machinery is 15-20%; whereas for solar installations the rate is 40%. This accelerated depreciation accounts for major relief in the upfront cost of solar power plant by 40% in the first year of operation, 40% in the second year and 20% in the third year. Thus, within a period of three years, a business can claim 100% depreciation for a solar project at effective tax rate (as per government) of 33%.

  • Fulfilling the Renewable Power Purchase Obligation (RPO) and Becoming Green

On May 13, 2015 the Supreme Court pronounced a landmark judgment on the applicability of RPO regulations stating: “…The object of imposing RE Obligation is protection of environment and preventing pollution by utilising Renewable Energy Sources as much as possible in larger public interest.” As per the amended National Tariff Policy, RPO has been increased from a minimum of 0.25 per cent in 2012 to 3 per cent by 2022.  Additionally, CERC and SERCs have issued various regulations on solar RPOs making it mandatory for the industries using conventional source of energy from open access market.

Your business can become a part of the global initiative to battle against global warming, adhere to your carbon credits and meet your RPO obligation.

  • Low Maintenance and Reliable Operation and Power Generation

Any solar power system requires little to zero maintenance post installation. At MI Solar, we go a step beyond by putting our rich experience of 44 years of being one of the oldest EPC players. We use the best-in-class technology and components from Tier 1 Original Equipment Manufacturers; offer a limited product warranty of 10 years and product limited output warranty of 25 years; and guarantee a performance ratio of 75% on our system for 25 years. Thus, once installed, your solar power system with continue to fulfil your energy demands unrestrictedly and cleanly for next 25 years to come.

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Why rooftop solar solutions may be best for you

rooftop solar solutions

rooftop solar solutions

It is not uncommon to find a rooftop solar solutions system installed in a building around you.

Irrespective of what you understand about generating power through Sun. You would agree that the energy generated through Solar is a clean and renewable source of power.

If you are contemplating on installing a roof top solar solutions in your premises. Then this article will help figure out if indeed it is what you should go ahead with.

What exactly we mean by rooftop solar solutions

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