How to set up Net Metering

Net metering helps Aussies maximise their return on investment by feeding excess solar power back into the grid, and receiving credits on their energy bills in return. From understanding the basics of how it works, to installing the necessary equipment and connecting with your energy retailer, there’s a few steps involved in setting up net metering. Here’s our guide to help you navigate this process.

How to set up net metering

What’s net metering?

Net metering allows Aussies to receive credits on their electricity bill, by feeding unused electricity generated by their solar panels back into the grid. It’s a great way to lower bills even more, helping to offset the cost of a solar system.

Benefits of net metering

There are two main benefits to be had from net metering: financial savings and environmental impact. By earning credits, you can offset the cost of grid electricity whenever you use it, or use these savings to offset the cost of your solar system. Environmentally, feeding solar power back into the grid helps to reduce the overall demand for fossil fuels. This helps support the transition to renewable energy.

How net metering works in NSW

In NSW, the primary net metering initiative is through feed-in tariffs. The rates for feed-in tariffs are not set by the government, but are offered by electricity retailers. This means the rate can vary from retailer to retailer. The NSW Independent Pricing and Regulatory Tribunal (IPART), however, does provide a benchmark range for feed-in tariffs. This is typically between 5 to 7 cents per kilowatt-hour (kWh).*

Eligibility criteria in NSW

To be eligible for feed-in tariffs in NSW, you must have a small-scale solar PV system installed on your property, which is usually up to 10kW for homeowners.

The solar system must be connected to the grid and there must be a smart meter installed that measures the import and export of electricity.

Step-by-step guide to setting up net metering

Step 1: Evaluate your solar system

• Assess the size and capacity of your solar panels to determine if they can generate excess electricity – over and above your typical energy usage
• Calculate your average energy consumption and estimate the potential excess energy your system can generate

Step 2: Check state regulations and requirements

• Research net metering policies and incentives in New South Wales (or Queensland if you’re reading this from just across the boarder)
• Ensure your solar system is compatible with net metering eligibility criteria e.g. up to 10kW for a residential system, and, connected to the grid with a smart meter installed

Step 3: Research and select a net metering-friendly energy retailer

• Research and compare energy retailers that offer net metering. Look for decent feed-in tariffs, customer reviews and contract terms
• Contact retailers about their net metering policies and procedures. Make sure that their customer service is helpful and willing to guide you through the setup process easily

Step 4: Smart meter

• Ensure that you have a smart meter installed to measure the import and the export of electricity
• If you have an existing meter that isn’t a smart meter, upgrade this. Your energy retailer should be able to arrange the installation or upgrade for you

Step 5: Apply for connection

• Submit all necessary forms and documentation to your selected energy retailer. This would include details about your solar system, smart meter and installation
• Wait for the approval from your energy retailer

Step 6: Installation

• If not already connected, engage a certified electrician to install and connect your net metering system
• Ensure thorough testing is conducted to demonstrate that the system is functioning correctly

Step 7: Monitor and maintain

• Use monitoring tools and applications to track your solar energy production and consumption
• Maintain your solar panels and smart meter to ensure optimal performance

Related reading: How system checks maximise solar performance

 

From evaluating your solar system, understanding NSW regulations, selecting a compatible energy retailer and installing equipment, there’s a few steps involved in setting up net metering. But, for the ongoing financial benefit, its well worth it. Use this guide as a starting point, but always do your own research. If you need any help or advice along the way, feel free to reach out to us on 1300 4 SOLAR.

 

You might find these links useful: