What is Netmetering and What is Gross metering. // Netmetering and Gross metering bill method.
Gross Metering
Net metering is an arrangement in which electricity exports are adjusted against imports, lowering the electricity bill, such that, electricity produced is deducted from the total electricity consumed over a fixed period of time. The adjustment may be done either on a monthly, half-yearly or annual basis. Typically, a bidirectional ‘net meter’ accounts for both import and export of power. If the exported electricity is higher than the imported electricity, a consumer may or may not be compensated for the excess electricity being fed into the grid (depending up a state’s net metering policy).
Netmetering
Relevance & Impact
With increasing awareness and availability of new business models, more and more consumers are adopting rooftop solar systems. In the current context while many distribution companies are inclined to discourage rooftop installations due to potential revenue loss, few have proposed to shift from net metering to gross metering. This is because under the gross metering arrangement, compensation to consumers is typically lower than the retail supply tariff (at which they buy electricity from discoms). While, under net metering since import of power is adjusted against the export, the compensation is effectively at retail supply tariff. Therefore, as a revenue protection measure, they are inclined to adopt gross metering instead of net metering[1]. However, there may be exceptions and consumers should understand the benefit and impact before choosing net or gross metering for their solar rooftop system (if discom provides the option).
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