Solar Net Metering In Australia: A Comprehensive Guide

When it comes to residential solar panel installations, no other country can beat Australia. The excellent sunny weather and savings on power bills are the main reasons behind the huge solar shift. However, switching to solar power doesn’t mean its users would go off the grid completely.

Instead, they can go hybrid and choose solar net metering for more profits and savings. Now, without further ado, let’s learn about net metering, its working, and its benefits.

What is a Net Meter?

It is a special meter that measures the total energy used within solar user property. It shows how much power users produce and use daily.

Net Metering is a billing contract and regulatory policy between electricity utility providers and solar panel users. It allows users to use both grid power and solar power simultaneously.

Net metering allows solar users to connect their solar PV system to the grid and when solar panels produce extra power it get exported back to the grid, which in return earns credits. This technique helps solar users offset the electricity import price from the grid when users use it i.e. in case of low solar power production due to cloudy weather or in night hours.

This way, solar users will only pay for the difference between excess solar power production and net power consumption, saving them from paying extra bucks on solar battery installations.

What Is Solar Net Metering?

Many countries are shifting to sustainable power alternatives and their governments facilitate their citizens to increase the use of solar panels to reduce dependence on conventional power i.e. fossil fuels. Power production through fossil fuels causes great harm to the environment and is expensive as well.

However, many solar consumers can’t rely completely on solar as solar batteries require high investments so they prefer to remain hybrid, that is they utilize solar power in the daytime and grid electricity at night hours.

In this scenario, solar PV systems are connected to grids and allow meters to measure power consumption. Various metering methods are used to adjust different incentive programs and tariffs. Net metering is one of the popular methods, that use a meter that can measure in both directions. And users pay only for the net power they consume. If users generate more electricity than their capacity, they will get solar credit for that at predetermined conditions and rates.

In Australia, excess solar energy is balanced at the market electricity cost. Energy bills are also calculated, as per the difference between total energy usage and the solar power produced.

Policy of Net Metering in Australia

Net metering is getting popular across Australia. However, the solar incentives and net metering options may differ state-wise. Unlike 2011, when net metering was introduced in some states, now, net metering is available nationwide in Australia.

Measurement Of Solar Power System

Australian solar users measure solar power through two systems: Gross net metering in which solar power is directly exported to the grid and the solar consumer gets compensated for it and solar net metering which offers credits for extra solar electricity.

Gross metering uses distinct measurements for power import and export. However, net metering applies a two-way reading method that tracks the spare and usable solar energy fed into the grid. With net metering solar users can avail themselves of feed-in tariffs.

When solar users get power from the grid, it is imported and charged at the retail power rate, varying from 22c to 55c per kWh. Export means the solar energy is fed into the grid and users receive compensation via feed-in tariffs per kWh of exported electricity.

Important Points to Pay Attention

• It is essential to set up a meter after solar PV system installation.
• Smart meter customers can configure their meters for net metering.
• Basic meter users will require a new compatible meter for solar PV systems.
• Solar installation processes include net meter upgradation for customers in VIC and QLD.
• Users in other states can request net metering from their recent power providers.

Advantages of Solar Net Metering

Net metering is the most beneficial method for solar users to save hundreds of dollars on grid power bills annually. It lowers monthly power expenses by 50%! But it highly depends on solar system size.

Unlike conventional power, solar users can power multiple home spaces, such as cabins, garages, sheds, and even EVs, to save money.

The Bottom Line

After reading this blog, we are sure that Australian solar users can understand solar net metering and how to leverage it. And the good thing is that besides net metering, many states offer other financial incentives to compensate for solar setup costs partly. So, it is high time to avail this opportunity and gain more on solar installations.