Since the consumer would be generating the electricity that he uses and throw the rest to the grid, the net meter gives a valuable insight into how much electricity is being produced and how much of it is being consumed. Net metering is an electricity policy to encourage more people to invest into solar. Since the consumer has to pay the grid for overconsumption of electricity, the outstanding record displayed in the net meter helps tackle this by making the people aware of the amount of units they have over consumed.
Net meter reading= (Total units of energy produced) - (Total units of energy consumed)
However, if A's production for the next month is 2000 units but he has consumed 2500 units, the utility would generate a debit note wherein he has to pay for the 500 unit that he has over consumed.
What are the benefits of net metering?
On grid rooftop systems
Hybrid rooftop systems
In one second our Sun produces enough energy to meet the current needs of the entire Earth for 500,000 years.