Net metering is a well-known compensation scheme that credits solar energy system owners for the energy they add to the grid. In simple words, it is a meter that records the inflow and outflow of your solar energy to the grid system.  

The policy of net metering is applicable only to on-grid systems that are connected to the main utility grid. However, off-grid systems are completely independent and have battery storage systems to store excess energy that can be used during the night.

How Does Net Metering Work?

To know how net metering works, you should first know where this meter is placed. A net meter is installed between the inverter and the main utility grid. As it keeps track of the amount of energy that you send to the grid and what you pull back from the grid, therefore it is also known as a ‘bi-directional meter.’

When your solar system produces more electricity than your consumption capacity at any point during the day, the excess electricity is sent back to the grid, running your meter in reverse. Furthermore, when you need energy either at night or on cloudy days, you can pull electricity back from the grid, running your meter forward. At the end of the month or year, you’ll be billed the net amount.

Net metering helps you to keep account of electricity production along the seasonal differences, as more electricity is produced on a bright summer day and less during the winter or any cloudy day. You can credit the excess electricity generated on sunnier days by your panels so that you can use it at a later date. Additionally, before installing a solar panel, review all the compensation schemes for net metering in your area. 

Types of Net Metering

For affordable residential solar panel packages in Perth, you should leverage the most suitable type of net metering. The most popular way to receive credits back from solar energy generated is via a traditional net metering method, but there are many other ways available as well. These are, namely, the buy all/ sell all and net billing methods of net metering.

Buy All/ Sell All

Under this model, all the energy generated by your solar panel is supplied to the utility company via the grid at a wholesale price, and you get energy for your consumption at a retail price from the solar company. This model of net metering works by selling 100% of the solar energy generated by your solar panel. You do not directly consume any of the energy your solar panels generate.

Net Billing

Unlike the buy all/ sell all model, the net billing model allows you to directly use the electricity generated by your solar panels. The only difference between the net metering model and net billing is that the utility company buys your excess electricity at a retail price. The method is more widely adopted in commercial situations.

Benefits of Net Metering

With net metering, you should explore guide for WA Solar Rebates 2023 so you can get the best return on investment on your solar panel and earn while getting the benefits of renewable energy. Here are some of the advantages of using net metering in your solar system:

Financial or Energy Credits

Net metering is one of the best ways to earn credits for the excess energy generated by your solar panel. Energy credits under residential plans and you can also reap the financial benefits under the net billing model of net metering.

Efficient and Low maintenance 

It is an efficient way to keep a record of the electricity supplied and consumed by the grid. As only one bi-directional meter is installed, it is easier to keep track of the energy credits. 

Savings On Utility Bill 

Net metering allows you to use credits earned from supplying excess electricity to the utility company via the grid. You can use these credits in the future to save more on utility bills as these will be auto-deducted from your electricity bill.

Eliminates The Use Of Battery Storage 

When you choose to go for a net metering mechanism, you have made a choice to install an on-grid solar panel system. Therefore, you have eliminated the extra cost of installing the battery storage system and generators. This helps you make your PV system more compact and will be directly connected to the grid. 

Choose ESA for the best Savings with Net Metering

With net metering, you can implement a new saving technique and see how it is a great way to get the most out of your solar panel system. The system of net metering not only provides an opportunity to earn extra credits but can also be used to monetize your energy generation by selling the excess power to the grid.


Net metering is one of the most common and effective ways to utilize the benefits of solar panels in today’s world. With the help of the best solar panel installation company in Perth like ESA, you can use net metering without any additional effort in your area and reap its benefits along with other solar incentives and rebates.