Gross and Net Metering

Energy storage systems are a great step forward for many net metered solar systems, yet many consumers don’t know if they are net, gross, or what the difference is. Below we have outlined the basic difference for you, and our belief to why energy storage systems will be an exciting opportunity for many solar system owners.

Net Metering

When energy is created through a net metered solar system, the energy is first fed to the home or business’ appliances and internal power needs, with any excess being exported to the grid. If any additional energy is needed by a consumer, such as during periods of bad weather, or at night, energy can be taken from the grid, just as a consumer without solar would use. Net meters measure how much energy a consumer uses through these periods of extra energy requirements, and also how much excess they export to the grid, with a rebate being paid to the solar system owner for their excess.

This model of metering is the only available version for new installations within the ACT and NSW, with gross tariffs no longer available. Additionally, it has been announced that it will be a requirement that all NSW gross systems will be switched to net metered at the end of 2016.

Gross Metering

Gross metering works differently from net by sending all the energy generated back to the grid from the consumers solar system. When this same consumer needs energy, they draw it directly from the grid instead of their own system, as opposed to how net systems, where they use their generated power. Gross metering systems are also based on a set price, each one dependant on the contract with the energy supplier, these can range anywhere from $0.20kW to $1kW and everywhere in between.

Energy Storage Systems

As net metered systems are the only option for new solar system owners, the introduction of energy storage systems like the Tesla Powerwall, or the LG Chem have made the playing field more interesting. Consumers are now able to store their excess energy they would have sold back for use at a later time, with less dependency on purchasing energy from the grid. This allows them to store the energy that they create during the day, and may not have been able to use, and use it at night when they are at home. Technologies such as Reposit Power then take this further, with the ability to sell back stored excess energy when prices are good, giving the consumer even more energy independence.

If you would like to find out more, please contact us on (02) 6140 4678 or sales@solarhub.net.au