Net Metering is the answer to your question: What happens if my solar power plant generates more power than what I consume?

Well, what happens is that, when your solar power plant on the roof generates more power than what you are consuming in your house or factory, the extra amount of electricity is sent (“exported”) to the grid.

Net Metering is simply a method by which the state electricity company/utility (the company that supplies you the power today) figures out how much electricity your rooftop solar power system has exported to the grid after consumption at your house or factory.

It is called Net Metering because it meters the amount of electricity exported to the grid net of the consumption at the premises.

You usually get paid some money for every unit you export to the grid, though this amount varies from state to state.

Net Metering is a useful idea as it ensures that any excess solar power generated by your solar power plant exported to the grid is measured and can hence be incentivized. Imagine you are running a company that works only five days a week. If not for Net Metering, the power generated from the solar power plant during weekends will be unaccounted for!

When you plan to put up a rooftop solar power plant, a key aspect on which you should gather information is the Net Metering policy in your state, and details on the monetization for the excess electricity your rooftop solar power plant supplies to the grid.


Stuff to Remember

Net Metering helps a rooftop solar power producer monetize surplus power generated and not consumed on the premises, but exported to the grid. This makes rooftop solar commercially more viable to businesses.