VNM vs. GNM: Key Differences Every Solar Consumer Should Know
If you want to use the best solar energy to reduce your electricity bills and become the energy independent, choosing the Best Solar Company in Lucknow is a great option. As use of solar energy increases, two beneficial programs are gaining traction—Virtual Net Metering (VNM) and Group Net Metering (GNM). These programs let you share or consume solar energy in a more flexible way, even if the panels are not physically located on your home. Knowing what the difference between VNM and GNM is crucial for you when you are getting to choosing solar panel partner to step with the Best Solar Company in Lucknow.
What is Virtual Net Metering (VNM)?
In Virtual Net Metering (VNM), a solar PV system is connected to the grid, and the energy output can be virtually shared by multiple houses within an electricity distribution area.
Rather than slathering every rooftop in solar panels, you can divide up the solar plant itself (it’s typically built off-site) and export all its output to the grid. Then, the produced power is logically assigned to end-users regarding their shares.
What Is Group Net Metering (GNM)?
In Group Net Metering (GNM), on the other hand, is designed for a single consumer who has multiple electricity service connections under the same distribution licensee.
Any solar energy surplus from a renewable energy system is first “netted” at the generation site, and any remaining extra energy is then distributed across the other service connections of that same consumer.
Key Differences Between VNM and GNM
1. Who Participates
- In VNM, multiple distinct consumers (e.g., households, societies) can join a shared plant.
- In GNM, the participants are different service connections of the same consumer (e.g., a company with multiple offices).
2. Credit Allocation
- VNM credits are allocated proportionally, depending on how much each participant has invested or agreed to in the shared plant.
- GNM credits are first netted at the site of generation and then any surplus is distributed based on a set priority or formula across the consumer’s own connections.
3. Location Flexibility
- With VNM, the solar plant does not need to be on a consumer’s premises – it can be off-site.
- GNM requires only one plant, but that can serve several of the consumer’s own premises – though those premises must be in the same license area.
4. Suitable Use Cases
- VNM is ideal for tenants, apartment societies, or any group of consumers who cannot install solar on their own roofs.
- GNM is well-suited for businesses, institutions, or consumers with multiple connections, such as an organization with multiple offices or a factory plus an administrative building.
5. Regulatory Support
- Regulators like the Uttar Pradesh Electricity Regulatory Commission (UPERC) in Lucknow oversee the Implementation of such policies in the State for both VNM and GNM.
- Under recent regulatory frameworks, some costs like network augmentation may be passed through or waived, making both models more attractive.
Why the Best Solar Company in Lucknow Matters in This Context
Choosing the Best Solar Company in Lucknow becomes essential when you plan to leverage VNM or GNM:
- Evaluate whether VNM or GNM is more beneficial for your situation
- Facilitate regulatory and technical procedures, especially since VNM and GNM policies vary by jurisdiction
- Design and build the shared solar infrastructure with the right capacity according to your needs
- Help configure billing and credit allocation systems to properly distribute energy credits under either model
Pros and Trade-Offs: Which Model Is Better for You?
Pros of VNM:
- Makes solar accessible to consumers without usable rooftops
- Enables cost-sharing and lower per-unit cost through scale
- Flexible model that supports “co-ownership” among different users
Pros of GNM:
- Ideal for businesses or individuals with multiple premises
- Simplifies billing: one generation system, credits distributed internally
- Can maximize the utilization of a single solar installation across several users
Trade-Offs:
- VNM can be more complex to administer due to more participants
- GNM requires careful prioritization of credit distribution
- Regulatory and metering infrastructure must support either model, which depends on your DISCOM’s policies
Conclusion
If you’re looking for the Best Solar Company in Lucknow to help you set up a solar system, it’s worth considering whether VNM or GNM would serve your needs better. Both models offer powerful ways to share solar benefits, reduce electricity bills, and support sustainable energy goals — but the right choice depends on your situation: are you multiple distinct consumers, or a single consumer with many connections? A reputed local solar company can guide you through the regulatory landscape, system design, and billing mechanism to make sure you deploy the most efficient and cost-effective solution.