Net metering or gross accounting? This is how solar energy billing will change in 2025.

Solar power systems provide the opportunity to generate your own electricity, but if you are connected to the electrical grid, you need to monitor both the amount of electricity consumed and the amount fed back into the grid.

The accounting can be done in several ways. Currently, net metering is the most well-known method, but soon gross metering will play an increasingly important role. Let's take a look at what this means exactly and how it might impact consumers!

What is net metering?

The term "net metering" originally comes from the Italian word "saldo," which means the settlement of an account. In the case of solar energy systems, net metering shows how much energy was drawn from the grid and how much was fed back into it over a certain period. The settlement is based on the difference between the balance. There are two types of net metering: annual and monthly.

Annual Net Metering

In this case, energy consumption and energy fed back into the grid are summed up once a year. If more electricity was consumed than was fed back, the difference must be paid. However, if there is an excess, the provider credits it in some form.

This method is very advantageous for consumers, as the surplus energy produced during the summer months can be used through the grid in the winter months. However, it is less favorable for the provider because they maintain the infrastructure throughout the year without earning extra income for energy storage.

Monthly Net Metering

Monthly net metering is stricter compared to the annual system: the amount of electricity consumed and fed back into the grid is measured and settled separately each month. This is less favorable for consumers because they cannot carry over the surplus energy produced in summer to the autumn or winter months for free. However, there is an advantage: if there is an excess in a given month, the consumer receives monetary compensation for it. Overall, annual net metering remains the best solution for consumers as it provides greater flexibility.

What is gross metering?

Gross metering is a new system in which the energy consumed and fed back into the grid are treated separately. The balance is not considered, and each kilowatt-hour is compensated separately: the provider buys electricity from the consumer at a low price (currently around 5 HUF/kWh), but returns it to them at a much higher price (around 36 HUF/kWh according to current tariffs).

Who is not subject to gross metering?

Consumers who expressed their intention to install a solar system before September 7, 2023, and install it by January 1, 2026, can still stay on the annual net metering system for 10 years from the system's commissioning. Consumers who are already on monthly net metering can continue to use this system.

How gross metering works

Under gross metering, consumers receive a bill every month showing how much energy they have consumed from the grid and how much they have fed back. The difference is that the compensation for the fed-in energy is much lower than the price at which the consumer buys electricity.

Since fed-back energy is less profitable in this system, the goal of most solar system owners will be to use as much of the energy they produce as possible themselves.

How will net metering change from 2024?

As mentioned above, those who expressed their intention to install a solar system before September 7, 2023, and install it by 2026, can continue with net metering for 10 years from the system's commissioning. New installers, however, will automatically be subject to the rules of gross metering.

This means that net metering will gradually phase out as the 10-year period for the last previously approved consumer expires.

Is it still worth installing solar panels in 2024?

Although the metering systems are changing, installing solar systems remains a long-term investment that pays off. This is especially true if a hybrid system is installed, where energy can be stored with batteries, reducing dependency on the grid.

In the West, self-consumption optimized solar systems are becoming more common, where the energy produced is used or stored locally. For those aiming for full independence, it may be worth considering an off-grid solar system that operates completely independently of the grid.

• Annual net metering is the most favorable for consumers, but it is only available to those who have applied for solar system installation on time.

• Monthly net metering is less favorable because there is no possibility to carry over energy to the next months.

• In gross metering, fed-back and consumed energy are settled separately, which is financially less advantageous.

• Hybrid and off-grid systems may represent the future for those who want to reduce their dependence on the provider.

  
  

Although the accounting conditions may change, solar panels still represent a good investment, especially in the long term and with proper sizing.