Net Metering vs. Net Billing vs. Gross Metering Understanding the Key Differences

As more homeowners and businesses switch to solar energy, understanding energy policies like net metering, net billing, and gross metering is essential. These mechanisms determine how you get credited or compensated for the excess electricity your solar system generates. If you're considering rooftop solar panel installation in Lucknow, knowing these differences will help you maximize your savings.
At Jai Kisaan Solar, recognized as the best solar company in Lucknow, we guide you in choosing the right solar system while ensuring you benefit from state-specific metering policies.
1. What is Net Metering?
Net metering is one of the most common policies used for on-grid solar systems in Lucknow. It allows homeowners and businesses to export surplus electricity to the grid and receive credits adjusted against their electricity consumption.
How Net Metering Works:
✅ A bidirectional meter tracks both imported and exported electricity.
✅ Excess power sent to the grid is deducted from your total electricity bill.
✅ Compensation and policies vary based on your state’s regulations.
2. What is Gross Metering?
Under gross metering, all the electricity produced by your solar panels is exported to the grid at a fixed feed-in tariff (a pre-determined price per unit of energy). You still purchase electricity from the grid for your consumption at the standard retail rate.
How Gross Metering Works:
✅ A separate meter records the total energy produced by your solar system.
✅ The utility pays you for the exported electricity at a fixed tariff.
✅ You continue to pay the grid for electricity at retail rates.
3. What is Net Billing?
Net billing is similar to net metering, but instead of receiving credits against your electricity bill, you are paid for the excess energy sent to the grid at a fixed rate (often lower than the retail electricity price). The electricity you consume from the grid is charged at the standard rate.
How Net Billing Works:
✅ Your solar system supplies extra energy to the grid, which the utility company buys from you.
✅ You receive direct payment for exported energy instead of bill credits.
✅ Energy used from the grid is charged at full retail rates.
Which Metering Policy is Best for You?
• If you want to lower your electricity bill, net metering is the best option.
• If you're looking for fixed payments for solar power generation, gross metering is ideal.
• If you prefer direct financial compensation for excess energy, net billing works well.
At Jai Kisaan Solar, we specialize in rooftop solar panel installation in Lucknow and provide expert guidance on metering policies.
Make the Switch to Solar Today!
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