Net Metering – An Investment in Solar Energy

Investment on electricity bills         

Investment on electricity bills are beneficial for anyone looking to not only offset the cost of their current electricity bill, but even net a profit by returning some of the gained electrify back to the Ceylon Electricity Board (C.E.B). With so many alternative, green energy options emerging, there is a vast opportunity for investment. Solar Energy is a leading alternative to current utility trends, and with the growing popularity of solar energy, investing in the equipment is become more of a reality, as costs are significantly reduced over previous years. Of course, before anyone should invest in solar energy, it is beneficial to do the necessary research to see if solar energy is profitable and capable of making the investment worthwhile.  

Solar energy equipment creates an AC current that, once generated, is sent from the point of generation to the point of use. In laymen's terms, the electrical current originates in the solar panels and is transported to the power outlet of a home or business facility using the solar energy panels. During the process, an installed meter monitors the amount of electrical consumption used throughout the day. Depending on how much energy is generated through the solar panels, at the conclusion of a billing cycle a statement is either sent to the individual using the solar energy, or the current energy stored on the solar panel's battery system is sent directly to the utility company, which then pays for the received energy.

Net Excess Generation or NEG

In order to both send the electrical current to the home and back to the utility company, the metering processes takes advantage of something known as bi-directional. This allows the current to both flows to the home utilizing the solar energy and back to the electrical company, which then compensates the users. The energy sent back to the electric company is known as 'net excess generation or NEG for short. Additional energy that is sent back to the utility company is credited towards the customer's next billing cycle. This way, if the home or other facility uses more energy than what is produced by the solar panel system, the previous month's credits are able to cover the shortage, ensuring the individual or company never has to pay extra for further power charges. 

The grid-tie without batteries

The net-metering, bi-directional power flow is only utilized in systems that are actually tied back to the grid. Systems not connected to the utility company's grid system have no way of sending unused energy back to the company. Instead, this energy must either be consumed or stored. Batteries connected to the solar panels are capable of storing only a set amount of energy. Once completely full, further energy may not be absorbed by the solar panels. Additional energy may not be absorbed by the solar panels until the user consumes some of the current energy or additional batteries are integrated into the system. Without a bi-directional system, the user of the solar panel equipment is not able to receive the energy credit or funds from generating the surplus of solar power energy.

With Grid-tie solar energy system, without batteries, the entire system price is reduced significantly, although it is not able to store energy. This is acceptable for anyone looking to gradually move into the solar power market and lives in a consistently sunny environment. The grid-tie without batteries are roughly 10-15 percent more efficient and are capable of sending energy back to the grid for further overall saving compared to a battery based system.

Also refer : CEB Approved Net Meter System in Sri Lanka 

Are you thinking about buying a solar electric system for your home or business?

Solar electric systems, which are also called photovoltaic or PV systems, are reliable and pollution-free. They make use of a renewable source of energy— the sun. And PV systems for homes and businesses are becoming more affordable all the time.

PV works best in an energy-efficient building. So, adding insulation and energy-efficient lighting, appliances, and windows is a good idea, to reduce your home’s overall electricity use before you install a PV system.

To make PV systems even more affordable, some utilities have net metering programs, which further enhance the economics of PV. Net metering means that when your PV system generates more power than you need, the excess goes to the utility grid and the meter runs backward. This allows you to receive full retail value for the power that your PV system generates.

A PV system can be a substantial investment. As with any investment, careful planning will help you make the right decisions for your home or business.


What is a solar electric or photovoltaic system?

Photovoltaic (PV) systems convert sunlight directly to electricity. They work any time the sun is shining, but more electricity is produced when the sunlight is more intense and strikes the PV modules directly (as when rays of sunlight are perpendicular to the PV modules). Unlike solar thermal systems for heating water, PV does not use the sun's heat to make electricity. Instead, electrons freed by the interaction of sunlight with semiconductor materials in PV cells are captured as electric current.

PV allows you to produce electricity— without noise or air pollution—from a clean, renewable resource. A PV system never runs out of fuel, and it won't increase oil imports.

The basic building block of PV technology is the solar “cell.” Multiple PV cells are connected to form a PV “module,” the smallest PV component sold commercially. Modules range in power output from about 10 watts to 300 watts.

A PV system connected or “tied” to the utility grid has these components:

• One or more PV modules, which are connected to an inverter

• The inverter, which converts the system's direct-current (DC) electricity to alternating current (AC)

• Batteries (optional) to provide energy storage or backup power in case of a power interruption or outage on the grid.

AC electricity is compatible with the utility grid. It powers our lights, appliances, computers, and televisions.


Net Metering

Special electricity meter (net-meter) will be fixed by the CEB/LECO to monitor additional power used from the grid; your monthly electricity bill will be calculated for these additional units only.

JLANKA systems are approved by the CEB and LECO to connect on to national power grid.  Solaredge and SMA inverters have special inverter settings that enable them to work within the CEB specified grid parameters.


Fixed deposit in the bank vs. Buying a Solar system

In very early days it was possible to pay the electricity bill from the interest by fixed depositing the investment of a solar power generation. But now it is not possible at all because

1. The investment have reduced dramatically as per kW price
2. The electricity tariff has increased to very high levels
3. The interest rates for the fixed deposits is less than rate of rise of electricity bills
4. Protected against sudden rise of electricity tariff rates

Therefore fix deposits are no longer an investment, when compared to investing in solar power generation plants. Exploring market for various solar solution, it’s clear that some provide systems with shorter warranty period and less overall harvesting under Sri Lankan weather conditions. JLanka have the correct solution with longest warranty period to have the maximum return.