Solar panels generate direct current, say 100 units, which is being transformed to alternating current by the inverter. Inverters efficiency varies between 97 and 99%. Let’s take KSTAR and Fronius inverters with 99% efficiency offered by Shtigen. With these inverters we’d have 99 units of alternating current at the output. Don’t forget that inverter is an electric device and consumes electricity. Also there are losses on the wires which depend on the wiring length. Let’s take losses equal to 1 unit. Electricity is supplied from inverter to the consumption, say 70 units, while the excess electricity together with losses – 99-70-1=28 units, is directed to the grid, being registered by the bi-directional meter. Don’t forget that the meter like the inverter is an electric device which consumes electriity. In the end the reading on the meter’s display will show less than 28 units while the reading on the inverter’s display was 100 units. As you can see there is no fraud in our example, you just need to know the meanings of readings on electric devices.