# Net Metering in India — How It Works and How to Get Approved **Last Updated:** January 25, 2026 Net metering is the mechanism that makes rooftop solar financially viable in India. Without it, excess solar power you generate during the day would simply be wasted. With net metering, it flows into the grid and your DISCOM credits you for it — reducing your electricity bill to near zero or even generating earnings. Here's everything you need to know. --- ## What is Net Metering? Net metering is a billing arrangement where: - Solar panels on your roof generate electricity - Excess electricity (not consumed by you) flows into the grid - Your DISCOM measures the net difference between what you consumed and what you exported - You only pay for the **net electricity consumed** (consumed minus exported) ### Simple Example: - Your home consumes 300 units/month - Your solar panels generate 400 units/month - You export 100 units to the grid - DISCOM credits you 100 units at a set rate - **You pay zero bill** (some states even pay you for net export) --- ## How the Bi-Directional Meter Works After solar installation, your existing single-directional meter is replaced with a **bi-directional (net) meter** that measures: - **Import:** Electricity drawn from grid (when solar is insufficient) - **Export:** Electricity sent to grid (when solar produces more than needed) At billing time: Net Units = Import – Export If Export > Import, you have a **banking credit** that carries forward to the next billing cycle. --- ## Net Metering Regulations in India The Central Electricity Regulatory Commission (CERC) and each state's electricity regulatory commission (SERC) set net metering rules. The key regulations: ### CERC Framework (2023): - Net metering allowed for systems up to **500 kW** for residential, up to 1 MW for commercial - Smaller systems (up to 10 kW) — net metering by right (DISCOM cannot refuse) - Systems 10 kW–500 kW — subject to DISCOM technical feasibility ### Settlement Period: Most states settle net metering credits on: - **Monthly basis:** Credits expire each month - **Annual basis:** Credits accumulate for 12 months, then settled (financially) Annual settlement is better for solar owners — gives you time to export in summer and draw back in monsoon/winter. --- ## State-Wise Net Metering Policies (2025) | State | Max System Size | Credit Rate | Settlement | Key DISCOM | |-------|----------------|-------------|------------|------------| | Maharashtra | 500 kW | Average purchase price | Annual | MSEDCL, Adani, BEST | | Gujarat | 500 kW | ₹2.25/unit export | Annual | PGVCL, DGVCL, Torrent | | Delhi | 500 kW | ₹3.00/unit export | Annual | BSES, Tata DDL | | Rajasthan | 500 kW | ₹3.14/unit export | Annual | JVVNL, AVVNL | | Karnataka | 500 kW | ₹3.56/unit export | Annual | BESCOM, HESCOM | | Tamil Nadu | 500 kW | ₹2.00/unit export | Annual | TANGEDCO | | UP | 500 kW | ₹3.50/unit export | Annual | PVVNL, DVVNL | | Haryana | 500 kW | ₹3.14/unit export | Annual | UHBVN, DHBVN | --- ## Step-by-Step: How to Get Net Metering Approved ### Step 1: Install Solar Through Empanelled Vendor Your solar installer (must be empanelled with the DISCOM) applies for net metering on your behalf. This is usually part of their service package. ### Step 2: DISCOM Technical Feasibility Check DISCOM reviews: - Transformer capacity in your area - Feeder loading - Grid stability considerations This takes **7–30 days** depending on the state. ### Step 3: Net Meter Installation If approved, DISCOM sends a team to: - Remove existing meter - Install bi-directional net meter - Commission the solar system officially ### Step 4: Commissioning Certificate After installation and meter change: - DISCOM issues a **commissioning certificate** - This is required to claim PM Surya Ghar subsidy - Solar system is now legally operational --- ## Why Net Metering Applications Get Rejected 1. **Transformer already overloaded** in your area — DISCOM may ask you to wait or reduce system size 2. **System size too large** relative to your sanctioned load 3. **Vendor not empanelled** — use only DISCOM-approved vendors 4. **Documentation incomplete** — load details, single-line diagram not properly submitted 5. **Apartment conflicts** — society not permitting individual applications --- ## Gross Metering vs Net Metering Some states offer **gross metering** as an alternative: - All solar generation is exported to grid (even what you consume) - You buy all electricity from grid at retail rate - DISCOM pays you a fixed tariff for every unit generated Gross metering suits commercial/industrial consumers with high loads. For residential consumers, **net metering almost always gives better financial returns**. --- ## Financial Impact: How Much Can You Save? ### Example: Mumbai homeowner (3 kW system) **Without solar:** - Monthly bill: ₹3,000–₹5,000 (300–500 units at Adani rates) **With 3 kW solar + net metering:** - Solar generates ~375 units/month - Net consumption: 300 – 375 = -75 units (net export) - Monthly bill: ₹0 (plus small fixed charges ~₹200) - **Annual savings: ₹33,000–₹57,000** - **Payback period: 4–6 years** --- ## Tips for Maximising Net Metering Benefits 1. **Use heavy appliances during daytime** — washing machine, dishwasher, EV charging — to maximise self-consumption 2. **System size to match daytime loads** — oversizing for export has lower financial returns than self-consumption 3. **Monitor generation daily** — apps like SolarEdge, Sungrow, or DISCOM app help track 4. **Check your bill carefully** — errors in credit calculation do occur; escalate if needed --- ## Find a Solar Installer Who Handles Net Metering A good installer will manage the entire net metering application, follow-up with DISCOM, and ensure commissioning. [Find experienced solar installers in your city →](https://gosolarindex.in)