On-grid photovoltaic powered systems convert the energy in the sunlight to electricity. DC electricity generated by the PVs is converted to AC by using an inverter. A production meter is an integral part of the system to measure electricity flowing to the grid. The system needs to stay connected to the grid.
Feed-in tariff and net-metering are incentive methods for the private sector to be compensated for the energy that flows back to the utility grid.
In a net-metering solution the excess electricity credit accumulated by the end of the month is transferred to the month after etc. and by the end of the year if the credit still remains the government compensates the client for it.
The feed-in tariff solution’s production is independent of the consumption at the site where it’s installed. This enables electricity consumption and electricity generation to be priced separately. The client is paid for the produced electricity at a tariff determined by the government.
The on-grid solar solution can be a superior choice economically for homes in the residential sector that have high electricity consumption and an available area to install the solution.