Net Billing

Net-Billing is similar to Net-Metering, with the key difference being how the surplus energy generated by the PV system is compensated. 

Instead of receiving credits that offset future electricity bills, under Net-Billing, excess electricity produced by the consumer's renewable energy system is sold to the grid at a predetermined price. 

1. Energy Generation: When a solar PV system generates more electricity than the consumer uses, the surplus energy is sent to the national grid.

2. Energy Purchase and Sale: The consumer still draws energy from the grid when their solar system isn’t producing enough electricity (like at night or on cloudy days). However, instead of receiving credits for the excess energy they send to the grid, the consumer is paid for this surplus energy, typically at a fixed rate or a price determined by the authorities.

3. Payment for Surplus Energy: In net billing, consumers receive payment for the excess energy they supply to the grid. The rate of payment is lower than the rate they pay for electricity drawn from the grid. This means consumers are compensated, but they don't get a one-to-one offset for energy produced versus energy consumed.

4. Billing: At the end of the billing period, the consumer is billed for the net energy they have consumed from the grid (i.e., the energy they took from the grid minus any excess energy they sold back to it). However, any energy supplied to the grid is compensated at the set rate.