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What are Net Metering arrangements?

Under net metering arrangements, the electricity you generate is used to supply your own energy requirements i.e. sent to your home first and then any excess generation that is not used in the home is exported to the grid. By reducing the need for grid electricity, you can reduce your electricity bill as your reduce the need of purchasing electricity from the network. Bill savings will increase as electricity prices increase.

Net meters work by continuously sampling how much electricity is being generated and how much electricity is consumed at your home. At each point in time the meter instantaneously reads the generation and consumption of the premises and the meter records both these amounts. The data is then accumulated in the appropriate register over the billing cycle. The meter is read and the bill is calculated. Now that high government sponsored feed-in tariff have stopped to be available for new customers, it is very likely that a net meter is the best way to meter your electricity after you solar power system has been installed.

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