1. What is Net Metering?

Net metering is a billing mechanism that credits solar energy system owners for the electricity they add to the grid. It allows residential and commercial customers to generate their own electricity and receive credit for excess power sent back to the utility grid.

2. How Does Net Metering Work?

The net metering calculation follows this simple formula:

Where:

• \( \text{Gross Bill} \) — Total electricity charges before credits
• \( \text{Credit from Export} \) — Credit received for excess electricity exported to grid
• \( \text{Net Bill} \) — Final bill amount after applying credits

Explanation: When your solar panels produce more electricity than you use, the excess is sent to the grid and you receive credits that offset your electricity costs.

3. Importance of Net Metering Calculation

Details: Accurate net metering calculation helps solar system owners understand their energy savings, optimize system performance, and maximize return on investment. It also helps utilities manage grid load and promote renewable energy adoption.

4. Using the Calculator

Tips: Enter your gross electricity bill amount and the credit received from exporting excess solar energy to the grid. Both values should be in the same currency and represent the same billing period.

5. Frequently Asked Questions (FAQ)

Q1: What is the difference between gross bill and net bill?
A: Gross bill is your total electricity charges before any solar credits, while net bill is the final amount you pay after applying export credits.

Q2: How is credit from export calculated?
A: Credit is typically calculated based on the amount of excess electricity (in kWh) exported to the grid multiplied by the utility's export rate.

Q3: Can my net bill be negative?
A: In some net metering programs, if your credits exceed your gross bill, the excess may roll over to future months or be paid out at the end of the year.

Q4: What factors affect net metering savings?
A: System size, energy consumption patterns, local climate, utility rates, and net metering policies all impact your savings.

Q5: Are there limitations to net metering?
A: Some utilities have caps on system size, time-of-use rates, or may offer different compensation rates for exported electricity.