Here’s How Solar Panel Net Metering Works

How does net metering works?

  1. As solar panels produce a great amount of energy during daytime, the excess of it is delivered to the utility grid.
  2. Then at nighttime, which is when the solar panels cannot produce energy, the supply is being taken from the utility grid.
  3. Should the consumption at night be more than what is delivered to the grid from the previous day, the excess amount will be billed to the homeowner.
  4. However, if the consumption at night is lesser than what is delivered to the grid, the excess amount will be credited.
  5. All credits will build up over the year and can be used during critical seasons where the panels cannot generate enough energy.


Have you ever heard of net metering? Today, more and more home owners in the Philippines are using solar systems (a.k.a. solar power systems), and net metering is among the programs that utility companies are now offering solar owners. It is indeed a great thing that a person is able to produce his/her own source of energy during the day, but did you know you could also store the excess energy?


What is Net Metering?

Net metering is a program among utility distributors (UD) such as MERALCO in the Philippines that allows solar panel owners to sell their excess energy supply and be delivered to the grid. In order to monitor the electricity generated by the solar panel system and the electricity consumed by the owners, net meters are installed.

Of course, the electricity is used first at home. Whatever energy is not consumed is delivered to the utility grid. This does not only help the home owners, but also the renewable energy supply of the country.

What are the Benefits of Net Metering?

Aside from the home owners being able to sell their excess energy to utility distributors, here are other benefits of net metering:

  • This program allows businesses and home owners to maximize their resource and produce energy for themselves. This becomes most essential during the summer season where electricity is at peak consumption.
  • This goes way back to the first benefit, given that businesses and other home owners can already be self-reliant during periods of time where energy consumption is at its peak, the load on the utility grid can be reduced.
  • Net metering also helps in promoting the green advocacy to consumers, and encourage them in taking part of the campaign. Not only are they able to keep the environment clean and green, but also help in preserving the renewable resources such as the solar.
  • More so, it promotes discipline and awareness on energy consumption to the public.

How does Net Metering Work?

Typically, solar panel systems produce a huge amount of energy during daytime hours in contrast to the amount of energy consumed at home. With net metering, this excess then is delivered to the utility grid, in which it may be stored for extra supply. It may also be used to equip other homes with the electricity that they need.

In the night time, your solar panel system obviously would not be able to produce energy. Hence, your energy supply will be taken from the utility grid (this scenario is just the same as how you use energy before you installed solar panels). At time of usage, which is during the night, your energy consumption billing will start at a negative balance. This is because you will only be charged with the amount of energy that exceeds the amount of energy you have contributed to the utility grid the other day.

Take this for example, if your solar panel produced and delivered a good 90kwh of energy to the grid during the day, and you have consumed a 110kwh during the night, you will be paying for the 20kwh that you have exceeded. However, if you have produced 90kwh and have only consumed 50kwh, then you will be credited for 40kwh.

These credits will build up over the year, and it will be very helpful for you at times that your solar panels wouldn’t generate much energy.


Net metering is among the most efficient programs in the Philippines that one can use to maximize the energy generated by solar panels. Not only does this help home owners, but also businesses and utility distributors alike. With how it works, definitely, you wouldn’t need to worry about blackouts and peak consumptions anymore.