‘Net metering’ is sometimes seen in the news in the context of promoting the
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This question was previously asked in
UPSC IAS – 2016
‘Net metering’ is a billing mechanism applied to solar energy systems and other renewable energy systems.
It allows consumers who generate their own electricity (e.g., using rooftop solar panels) to send excess electricity back to the grid. The consumer’s electricity meter runs backward to provide a credit for the energy fed to the grid, or the utility tracks the credit separately. This credits the consumer for the energy produced, effectively promoting the production and use of renewable energy, particularly solar energy, by households and other consumers.