Solar Powered Household

How Does Net Metering Work?

Net metering plays a major role when going solar. It allows customers to enjoy credits for any excess solar production generated by their home, which creates more savings.

How does Net Metering work?

A rooftop solar pv system connected to the net metering program enjoys the benefit of receiving credits from their distribution utility, thus allowing them to save on electricity costs. In fact, when a household doesn’t consume the energy produced by one’s Solar Home system, the unused pv production generated is then credited to the next month’s electricity bill.

How does credit-system in the Net Metering Program work?

The excess solar pv production generated by the solar pv system is exported back to the DU grid. In this case, the additional power generated is then credited to the customer’s electricity bill, making it much lower than normal.

How do you compute for the deduction on your next bill?

If a solar home produces 400 kilowatt-hours in a month,  but only uses 320 kilowatt-hours, an excess of 80 kilowatt-hours is generated. Calculate for the generation rate–what is paid to the power plant to generate electricity and the kwh rate of the distribution utility–then multiply it by the excess kilowatt-hours produced. The total amount will be deducted from one’s next monthly bill.

 

For example:
[PHP 5 (Generation Rate) + PHP 5 (Distribution Utility Rate per kilowatt-hour)] x 80 kWh (Excess Energy Produced by Solar Installation) = PHP 800

PHP 800 will be reduced from the next electricity bill.

 

How does net metering work-01 - Buskowitz Energy

What is the process to apply for the Net Metering program?

  1. Apply for the Net Metering program with Buskowitz Solar’s liaison officer
  2. The liaison officer will assist in compiling the required documents and  filling-out the required forms from Meralco, Capelco, etc. depending on the distribution utility, and submit them on the client’s behalf
  3. Upon receiving the documents, a representative from the distribution utility will conduct the Distribution Impact Study. This is to ensure that the solar installation will not affect their distribution line. Once passed, the home is eligible to be part of the net metering program
  4. A net metering agreement will be issued by the DU for signing
  5. Buskowitz Solar submits the signed agreement to the DU
  6. The Distribution Utility will forward all document to the Energy Regulatory Commission
  7. The ERC will create a “Certificate of Compliance”, which formalizes that the household is now part of the Net Metering program.

What are the requirements?

  1. Barangay Clearance for Solar Installation
  2. Transfer Certificate of Title
  3. Tax Declaration
  4. Tax Receipts
  5. Latest Distribution Utility Bill (Meralco)
  6. Owner’s Valid ID

Are you interested to learn more about how Net Metering works and take your solar home to the next level? To request assistance for a Net Metered home, reach out to Buskowitz Solar at info@buskowitz.com.

 

Comment (1)
jeffro Yap
July 5, 2020

I dont understand the computation for net metering. Please explain to me again. If a solar home produces 400kw hours in a month and uses only 320 kw hours a month for the total home consumption. I have an excess of 80 kw hours of solar power and i wont have to pay for my electricity bill anymore because my usage is below than what my solar is producing. Do i understand it correctly? Thanks

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