What is net-metering?

In a nut shell, Net-metering allows a customer of a Power Utilities (DU) such as Meralco to install a Solar Panel System that does not exceed 100kilowatts (kW) in capacity so they can generate electricity for their own use. Any electricity generated that is not consumed by the customer is automatically exported to the  (The Meralco) distribution system. Meralco then gives a credit paid to you in pesos off of your electricity bill for the excess electricity received equivalent to Meralco’s blended generation cost, excluding other generation adjustments, and deducts the credits earned to the customer’s electric bill.  In essence the Power Company Pays You to generate electricity using Unlimited Free Sun Power.

How Grid-tied Systems Work?

  • The installed array of Solar Panels produces DC Power by gathering energy from sunlight and separating electrons to make a current.

o    This DC power is then sent to an inverter, which:

o    matches the exact alternating current and frequency of your building’s grid

o    and converts the Direct current of the panels to Alternating Current

  • The power that is converted is then transmitted to the nearest load

o    If the building consumes more than what the solar produces, the supplement is taken from the regular source of power

o    No switches are necessary with this system. Power usage is done automatically and No Batteries are needed.

  • Overall your Meralco electricity bill reads a lower demand/consumption – Power bill is therefore reduced.
  • Excess energy produced by the Solar Panels and that is not consumed, is sent out to Meralco and will be credited to the overall electricity bill through the newly implemented Net-Metering process as of June of 2014.