Gross Metering versus Net Metering: What’s The Distinction?


There’s distinction in the way gross metering and net metering operates, which is explained here below. Let’s first start with gross metering and then we’ll move over to net metering.

Gross Metering

When gross meter for the solar system is installed, it will transmit all the solar energy produced directly to the grid. This means, you’ll receive a payment i.e. feed-in tariff for the solar power your system feeds into the grid and you need to pay for the solar energy your household uses.

Gross Metering works as follows:

  • With the help of sunlight, your solar system produces electricity.
  • The gross meter that you have installed measures all of the electricity generated by your solar system and then transmits it to the electricity grid.
  • Consumption meter installed at your home measures all the electricity that your home utilises.

Net Metering

Net meter for the solar system is installed in a way to transmit energy to your home first and then transmit the surplus energy back into the grid. It means the solar energy not utilised in your home is transmitted to the grid and for that you receive a payment, which is known as a feed-in tariff for the surplus energy. In short, a net meter records the solar energy your household consumes from the grid, as well as, the surplus solar energy your solar system produces.

Net Metering works as follows:

  • To produce solar energy, your solar system uses sunlight, which is freely available.
  • The generated energy is first transmitted to your home and if your home requires more electricity, it will be supplied from the grid.
  • The net meter installed at your home measures both your household’s total energy intake, as well as, the total solar energy produced by your solar system.
  • Any surplus solar energy is transmitted to the grid and relevant feed-in tariff is applied.

Net Metering Advantage

Typically, if your feed-in tariff is lower than the price you actually pay for electricity, then you’ll be at an advantage with net metering. In net metering, you’ll be using your own solar energy first, so you won’t have to pay for it. And you’ll be just paying for whatever extra energy your household uses from the grid, which might well lower your overall electricity bill.

Move to Net Metering With A Remotely Read Digital Meter

Smart Meter

  • Smart meters measure energy intake in real time and can remotely read and operate.
  • When a smart meter installed, it facilitates you to have better access to the data concerning your home’s energy intake.

Other advantages are:

  • You can use all of the solar energy produced using your solar system, and then if any extra energy remains is exported to the grid. This is a fantastic way to lower your electricity bills.
  • No longer is “meter read access” to your property needed.
  • It gives TOU (Time of use) tariff capability.
  • Get ready for future products and services that use smart meter technology i.e. access your usage data and export data through a secure web portal.

If you want to install a smart meter at your home, straightaway contact an accredited level 2 electrician in Sydney.



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