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Which is better Net Metering or Gross Metering?

In gross metering, ROI from the solar is fixed for 25 years as all the energy generated is exported, as PPA is for 25 years. Here solar power generated is offset against regular electricity bill, which increases by 5 to 7% yearly.

In net metering, ROI is dependent on savings on the electricity bill. Here solar power generated is offset against regular electricity bill, means as electricity bill increases every year, the savings from solar also increases.

Comparing gross metering has a marginal advantage in terms of revenue generated. But in succeeding years the benefit from self-consuming the energy will make net metering more advantages. As solar is a long term asset, net metering has better advantage in terms of financials. Also, there is only one bill generated, there is less confusion in terms of the payment to be received from Utility and the amount that has to be paid to utility. In terms of long term benefits and ease of the system, net metering will reap good benefits for customer and that’s why we call Net-metering the NEAT METERING.