What are the differences between Net Metering and Net Billing?

What are the differences between Net Metering and Net Billing?

The Net Metering scheme is for consumers with a photovoltaic system with power needs up to 10.4 kW. On the other hand, the net billing scheme allows consumers to install a photovoltaic system of more than 10.4 kW and up to 10 mW.

Another difference is the way the consumer benefits from the excess electricity produced during the day by the photovoltaic system. In the Net Metering scheme, the excess electricity stored in the grid is deducted from the next electricity bill while the consumer only pays for storage costs for the excess electricity stored to the grid. On the other hand in the Net Billing scheme the excess electricity sent to the grid is costed according to the avoidance cost of EAC and then this amount is credited to the next electricity bill. The way Net Metering scheme calculate surplus value from the photovoltaic system is more beneficial for the consumer than the net billing scheme.


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