Commerical Solar Power is now being used widely by factories and industries where power backup is a must. Moreover, it helps reducing the consumption of electricity. Let’s see how commercial solar power works.

1. Solar Modules – They are mounted on the grounds or on the roof of the building where the sunlight gets converted into Direct Current

2. Inverter – The generated power will then be sent to a device named “Inverter”, also known as power converter which converts the Direct Current from the solar modules to Alternate Current

3. Electrical Panel – The power converted by the inverter will then travel to your electrical panel where it gets distributed to various electrical loads all around your facility

4. Utility Grid – Through an electric meter, the excess power generated by the solar modules will flow into the utility grid. This will result in running your meter backwards and gain you backup power

There is another term involved in this, called “Net Metering”.

It is an agreement between the customer, you and an utility company. This agreement states that the excess electricity produced by you will be credited to your account by the utlity and feed the same into the utility grid.

Whereas if you opted to install a Time-of-use meter, the power can be credited at different rates such as off peak rates and peak rates. These rates are dependent on the day of the week, time of the day and month of the year. Generally, peak periods are week day afternoons in the summer. You will be credited at a higher peak rate, if you generate the power and sent to the utility grid during these peak times. And if you utilise this power during off peak times then you will be debited at off peak rates.

Hence, it is advised to install “time-of-use meter” rather than an ordinary one, in order to gain maximum.