Regulation, paperwork and institutions
Net metering
Also known as: surplus offsetting, net balance.
Definition
Net metering is the scheme that lets you deduct from your bill the energy your system exports to the grid when it produces more than you consume. In Colombia it is regulated for small-scale self-generators by CREG Resolution 174 of 2021, which replaced CREG 030 of 2018.
Sources: Resolución CREG 174 de 2021 (net metering regulation) (opens in a new tab)
The mechanism is easiest to grasp through an ordinary day. Between ten in the morning and three in the afternoon your system produces more than you consume: that surplus flows out to the grid and the bidirectional meter records it. At night the opposite happens: you consume from the grid and the meter records it in the other direction. At the end of the period, the retailer settles both flows and bills the result under the rules in force.
What makes that offsetting possible is the regulatory category of small-scale self-generator and the connection process with the grid operator. Without that process there is no bidirectional meter, and without a bidirectional meter the surplus is exported to the grid with nobody accounting for it. It is the most expensive mistake you can make on a grid-connected installation.
Offsetting does not automatically mean swapping kWh for kWh at the same tariff: the conditions and limits of the settlement are set by the regulation in force and applied by your retailer. So rather than looking for a general rule, it is worth asking the installer to explain how your bill will look in your specific case and with your retailer.
The essentials of Net metering
- It requires the connection process and a bidirectional meter from the grid operator.
- Framework in force: CREG Resolution 174 of 2021, successor to CREG 030 of 2018.
- It applies to the small-scale self-generator category.
- Without legalizing the system, surplus is exported to the grid with no offsetting.
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Frequently asked questions about Net metering
Does net metering take my bill to zero?
No. It offsets the energy component, but the bill keeps fixed charges and other service items, and surplus settlement follows the rules of the regulation in force. The realistic expectation is a significant reduction in billed consumption, not the disappearance of the bill.
What happens to surplus I never consume?
It is exported to the grid and settled according to what the regulation applicable to your case and your retailer establishes. That is precisely why oversizing a system well above your own consumption is rarely a good economic decision: what pays is matching output to what you actually consume.
Who handles the net metering process?
The application is filed with the grid operator for your area, and in practice the installer usually handles it as part of the project. It is worth confirming in writing that the quote includes that process: it is one of the most frequent omissions in cheap proposals.
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