Detailed Guide on Commercial Electricity Meter types: What is Meter Kwh?

If you want to monitor your business’s or home’s power consumption, it is crucial to install the right type of electricity meter on your premises. 

An energy meter Kwh measures and records the units of electricity consumption in a building and sends it to the supplier to generate accurate bills. In case you have a solar system, installing a proper energy meter becomes vital for increasing your savings.

Now the question arises – which energy meter to choose and what is the solar metering scheme?

If you are concerned about these topics, you have hit a goldmine. In this blog, we will cover everything related to commercial electricity meter types including the meter Kwh. But first, let’s understand what an electricity meter is.

What is an Electricity Meter?

An electricity meter is a device that calculates the units of power consumption in a residential or industrial setting.

Electric appliances at places where there’s a solar system installed use power from solar panels during the day and transport the extra units to the connected grid. At night, those units are imported from the grid to run appliances.  

The electric meter Kwh accurately records the exchange of power between the grid and solar plant to generate the net bill. 

But do you know that meter Kwh types vary in specifications according to their area of application? The next section provides information about the same.

Classification of Energy Meter Kwh According to the Area of Application 

You need to install a meter Kwh according to the power consumption and the area of operation. All the electricity meters are grouped in the following categories:

  • Residential meter: This electrical meter applies to domestic properties. It is bidirectional in nature and lacks PT and CT.
  • Commercial electricity meter: It applies to commercial areas for accurate measurement of power usage. The presence of CT and PT makes it relatively more efficient than a residential energy meter.
  • Industrial electricity meter: It is carefully designed for heavy-duty applications in large industries. It has an ABT which records the power utility every 15 minutes for precision.  

Among all the three-meter categories, the industrial meter is the most efficient because it records every minute change in unit consumption. This helps in better power optimization to reduce electricity bills.

Electricity Meter Kwh Scheme for Solar Systems

If you have a solar system for power generation, it is crucial to understand the metering schemes to get the maximum benefits from the solar plant. 

There are primarily three types that you should be concerned about. Have a look:

1. Net metering

This consists of installing a net meter for your solar system. It records the exchange of power between the grid and your solar system. It’s a bi-directional meter kWh.

2. Net billing

This is a relatively new concept, and it is concerned with the calculation of electricity units exported to the grid for making a payment. 

Here is an example to simplify this calculation:

Suppose your solar system generates a total of 120 units of power, and your daily consumption is 100 units. In this case, the extra 20 units go to the grid, and you receive a payment for these 20 units.

3. Behind the meter

This solar metering scheme is quite unique. Here’s an example to understand it better:

Suppose, you have a 5 kW solar system that produces 20 units of power every day. All 20 units will be consumed within the building; hence, no power will be left to be exported to the grid. Hence, there’s no need for a bi-directional meter in such cases.

Types of Energy Meter Kwh

Now that you know all about the metering schemes and areas of application, let’s look at the types of meter Kwh. 

1. Single phase energy meter

It is the basic meter Kwh, which is connected to the power load. It has two wires (one, a phase wire and the other, a neutral wire) that ensure a smooth power supply to the household. 

However, you can use this meter only for the circulation of AC current. Moreover, it requires a motor for operation as it does not support manual operation.

2. Three-phase energy meter

This is the most common type of energy meter Kwh which offers good power efficiency. It is generally used in industrial or commercial premises.

3. BTU meter

BTU is an acronym for British Thermal Units. Similar to a three-phase meter, BTU is also suitable for industrial applications. 

However, it has an additional temperature sensing feature, which makes it more efficient for high power consumption circuits.

4. Smart electricity meter

This meter is one of the best solutions to remotely transmit the power consumption data to the user. 

Moreover, it communicates the data in two ways, meaning it sends the unit consumption to the grid utility and receives the information from the automatic meter recording system and utility connection.

However, it’s relatively new and not yet installed in many parts of India.

5. Prepaid electricity meter

The concept behind this meter is similar to other prepaid devices. You first need to recharge the meter. 

As you use the electricity, your prepaid value keeps decreasing. This meter is one of the best ways to manage your power consumption because you can track the balance left and recharge your meter Kwh accordingly, in time.


Electricity meters are essential components for every setting that uses solar and utility power supply. However, they are available in multiple types and have different functions to suit particular applications. 

If you want to install a meter Kwh to monitor your power consumption, consider checking the meter specifications to make an intelligent buying decision.


Q. Which is the best energy meter for industrial application?

A three-phase energy meter is the best option for monitoring power usage in commercial and industrial settings.

Q. Which net metering scheme is suitable for getting money for power supply?

You can generate income by selling excess solar power through a net billing scheme. This scheme records the units of power transferred to the grid, and you receive money for these units.

However, it is never recommended to install a higher-capacity solar system just so that you can sell excess power and earn money. Keep in mind that the discom purchases solar electricity at very less rates; not the tariff that you otherwise pay for grid-supplied electricity. 

Q. Why is the industrial electric meter the most efficient?

The industrial meter precisely records power consumption every 15 minutes. Therefore, it is considered the most efficient meter.