What is net metering?

Net metering is a way of billing in which people with solar energy systems get credits (called "feed-in tariffs") for sending extra power to the grid.

Aug 03, 2022
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Net metering is a way of billing in which people with solar energy systems get credits (called "feed-in tariffs") for sending extra power to the grid. A net meter keeps track of how much energy goes from a solar energy system to the grid and back again.

When you decide to put a solar power system in your home, you'll have to below options:

  • A system that isn't connected to the grid (standalone system)
  • One that is hooked up to the grid

Below are the reasons when net metering comes into play if you connect your system to the grid:

If you produce surplus energy

When a solar energy system makes more energy than is needed, the extra energy goes to the grid, and your meter spins backward.

If your energy consumption is higher than what your solar panel system produces.

If your solar energy system doesn't produce as much energy as you need, your home draws the extra energy it needs from the grid making your meter spin forward, incurring charges.

How does net metering work in Australia?


In a nutshell, net metering allows you to receive credit for the solar energy you send back to the grid and offsets the electricity you will eventually purchase from the utility. This enables you to receive the full economic value of all the solar energy your solar panels create. As a result, your monthly electric expenditures will be minimized if your solar panel system is sized correctly.

When your solar panels aren't producing throughout the night, you draw power from the grid, which causes your electric meter to spin again. The phrase "net metering" actually refers to a billing method where the utility computes your final bill by netting the amount of electricity you used and sent to the grid after the billing period.

Benefits of net metering?

Huge savings on utility bills

Reducing utility costs is net metering's significant advantage for solar homeowners. Net metering can save tens of thousands of dollars throughout your solar panel system's lifetime. However, net metering cannot eliminate some fixed charges found on most electric bills.


Reduced payback times

Payback times will be substantially shorter in areas with complete retail net metering than in those without it. This is because solar-powered homeowners will save more on their electricity bills and accelerate the amortization of their investment. Your solar system's payback period is impacted by various factors, not just net metering. How long it takes for your solar panels to pay for themselves will depend on several factors, including the size of your solar panel system, how much electricity you use, the installation cost, and the availability of solar incentives and rebates in your area.


Reduces the grid's stress

Because they lessen the strain on the electric grid distribution system, residential solar panels are very advantageous to utilities (and their consumers). There are fewer people directly using power from the grid since solar homeowners are using their own electricity rather than the grid. Additionally, when a solar system delivers extra energy to the grid, other utility customers who do not use solar panel systems use that energy to meet their own energy needs. This relieves utility power plants of even more stress.


Solar net metering agreement types

Solar Net Metering and Gross Net Metering are the two types of solar energy meters used in Australia

Net Metering

When solar energy is used in your home, and only the surplus amount is exported to the grid, this is referred to as net metering.

Gross Net Metering

The term "gross metering" refers to a metering configuration in which all solar electricity produced is exported to the external electricity network via a separate meter. You would keep using a different meter to track your energy usage. Because the quantity received is exceptionally evident with gross metering, and it is simple to charge consumers more for solar production, it is thought to be an effective approach to persuade homeowners to invest in solar. According to this layout, the main meter box, or the site of the gross meter, is where the solar system's cabling must go.

So why not switch to solar panels with www.sunboost.com.au and make a positive change?

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