We all know that using solar energy saves up to 95% of your electricity bills. But can you also save on your business or factory bills? Well, the answer is Yes. For bigger needs, you need to install commercial & industrial solar systems.
Net metering is a policy that will help you save on your electricity bill based on the energy generated by your solar plant. The commercial and residential net metering systems are the same, but the size differs. In this blog, you will explore more about the net metering system’s working process, electricity bill calculation process, installation process, and other details.
What is Net Metering?
Net Metering or Net Energy Metering is a bill calculation mechanism for solar systems with grid connectivity such as on-grid and hybrid solar systems. In this process, you can set off your electricity bills by sending the excess energy to the power grids.
A bi-directional meter is installed to calculate both side transactions called net meter. This meter is installed beside your old electricity meter. You need to contact your local DISCOM for net metering.
As an illustration, consider that you live in Assam. You will have to contact a DISCOM-empanelled solar company in Assam to install the solar system. After installation, you will have to apply to your DISCOM for net metering. Once the net meter is installed, you can start exporting electricity to the DISCOM’s grid.
Electricity Bill Calculation With Example
Here is a simple example to help you understand how the electricity bill calculation process works in this process:
- For instance, in the last month, the energy consumed by your factory/business is 16,000 kWh and the total electricity transferred to the power grid of your DISCOM is 15,000 kWh.
- Now your DISCOM will calculate the final electricity bill in this method:
- Net Electricity Consumption = (Import from Grid Electricity – Export of Solar Plant Generated Electricity)
- Therefore, you have to pay the bill only for the = (1600 – 1500) kWh = 1000 units
Will You Get Net Metering for Commercial Solar?
Now, the main question is: Can you get the net metering facility if you buy a commercial or industrial solar plant? The answer is ‘Yes’; you are eligible for this. Using this system, you can also reduce your electricity bills by up to 70%—80%.
For example, if you have a business in the tea industry, you can save a lot on your electricity bills by opting for solar for tea industry. This way, you can reduce the electricity bill for running small to big machines of the factory.
To install a net meter for your consumer ID, you need to follow some basic steps:
- Visit the website/office of your electricity supply company/DISCOM and fill out an application.
- Now you need to wait for the site verification by DISCOM officials.
- They will check the installation location, solar plant, and sanction load to give you approval.
- Once approved, you need to sign the net metering agreement
- Submit the documents (briefly described below) of your property, installation certificate, solar system certificate
- With these documents, you have to deposit the net meter cost and installation charges to your DISCOM
Note- The actual installation process, required documents, net meter cost and installation fees vary between different states and DISCOMs
To get support and assistance, you can contact Das Energie Private Limited, one of the best solar system installers in India. With commercial & industrial solar systems, you can also get solar panel installation for homes with experienced solar installation partners.
Advantages of Net Metering in Commercial Uses
These are some advantages of choosing a net metering system for your commercial solar plant:
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No Cost For Battery
When you are using a net metering system with your commercial solar plant, you don’t need to buy/install solar batteries. Even if there is some unused energy, it will be directly transferred to the power grid and you will save bills for it. Besides commercial solar plants, your home solar installation cost also varies if you choose a solar battery or not.
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Electricity Bill Reduction
In the net metering system, a bidirectional meter helps to calculate your net electricity bill based on the electricity generated by your solar system. In this system, you become eligible to buy and sell the electricity units at the same price.
For example, universities can install solar solutions for universities to export electricity to the DISCOM’s grid and reduce their electricity bills. The solar panels can be installed on the roof of the university.
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Zero Maintenance Cost
To use the excess electricity, if you use solar batteries, you need to pay additional costs. Additionally, it needs maintenance and needs to be changed once every 7 – 8 years. On the other hand, the net meter has zero maintenance cost which helps you to save money.
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Encouragement of Renewable Energy Use
Net metering promotes the installation of solar panels by rewarding those who install it. It allows homeowners to capitalise on their investment, thus fostering a greater transition towards sustainable energy sources and reducing reliance on fossil fuels.
Documents Required for Net Meter Installation Approval
Here is a list of documents required to get the net metering approval from your DISCOM:
- Detailed project report of your commercial solar power plant
- Recent Passport Size Photograph of the Applicant
- Identification Documents such as Aaadhar Card, Passport, etc.
- Xerox Copy of Your Latest Electricity Bill
- Documents to Proof the Ownership of the Property
- Offline or Online Application Form
Note- The DISCOM official may ask you to submit some additional documents (if required)
You can check the state-wise DISCOM list and their empanelled vendors from the National Portal for Rooftop Solar.
A commercial solar system net metering system is a mandatory option to save your high electricity bills. It can lead to immense cost reduction in a business. For example, in the biotechnology, food processing, and pharmaceutical industries, there is a tremendous need for cold storage. By installing solar for cold storage, businesses can enjoy excellent return on investment and save on their power bills.
In this whole blog, you have got all the required information to clear all your doubts. Even if you have doubts, you may contact a solar system installer for further guidance.
In this case, you get the best help from Das Energie Private Limited. Here you will get free guidance on solar installation, different types of solar services, etc. in a single platform.
