A lot of excitement has been developing w.r.t Net Metering policy of Solar Power. Net Metering in simple terms is a mechanism that allows for accounting of units exchanged with grid (Imported as well as exported) by a solar powered consumer. Net-Metering is facilitated by a bi-directional meter that records both imported and exported units through a electricity-line.
While Solar power has advantages of being green and cost-saving for a consumer, it suffers from problem of variability. The rate of solar unit production increases with day-time, peaks at around noon and starts falling thereafter. However, the load of a consumer has marginal variation only.
To compensate for this mis-match a balancing power source is required that can supply units in case of shortage of power and take-up units in case of excess production.
Hence, solar power systems are classified as three types:
1. On-Grid Systems: Where this exchange is supported by grid.
2. Off-Grid Systems: Where this exchange is supported by Batteries.
3. Hybrid Systems: Where the exchange is supported on priority by batteries and then by grid.
See NetMetering Policies of different States of India. Click here