Net Metering in India
How It Works & State-Wise Rules
Net metering is what makes rooftop solar financially viable. Here's exactly how it works and what rules apply in your state.
What is Net Metering?
Net metering lets you export surplus solar electricity to the grid and receive credit on your bill. A bi-directional meter tracks imports and exports — you only pay for the net difference.
How Net Metering Works
The Daily Energy Flow
You generate more than you use → Export to grid
You use grid power → Import from grid
At month-end, you only pay for the net difference. Most 3kW+ systems result in a ₹0 bill.
The bi-directional meter has two registers — one for import, one for export. Most DISCOMs replace your existing meter at their cost (some charge ₹2,000–₹5,000).
State-Wise Policies
| State | DISCOM | Surplus Treatment |
|---|---|---|
| Maharashtra | MSEDCL | Carry forward 12 months, then lapse |
| Karnataka | BESCOM | Carry forward 12 months |
| Delhi | BSES/Tata | Compensated at APPC rate (~₹3/unit) |
| Gujarat | GUVNL | Buyback at ₹2.25/unit |
| Tamil Nadu | TANGEDCO | Carry forward, settle annually |
| Uttar Pradesh | UPPCL | Carry forward 12 months |
Application Process
Apply via PM Surya Ghar
Initiate net metering request during your solar subsidy application.
DISCOM Feasibility Check
Verifies local transformer and grid can handle additional generation. 7–15 working days.
Install Solar System
Empaneled vendor installs the system after feasibility approval.
Submit Commissioning Request
Upload installation photos, panel serial numbers, and inverter details to DISCOM.
DISCOM Inspection
Engineer inspects for safety compliance, proper earthing, and correct wiring.
Meter Replacement
DISCOM replaces your meter with a bi-directional meter. This is the final step.
Net Metering Goes Live
Once the new meter is activated, net metering begins automatically.
Surplus Credit Rules
Monthly rollover — Unused credits carry forward. October surplus offsets November imports.
Annual settlement — March 31 reset. Remaining credits paid at APPC rate (₹2–3/unit) or zeroed.
No banking beyond 12 months — Credits don't accumulate indefinitely.
Fixed charges still apply — Even with ₹0 consumption, expect ₹200–500/month in fixed charges and duties.
Common Issues & Solutions
Delayed meter replacement
File a grievance on the PM Surya Ghar portal and escalate to your state SERC if delayed beyond 30 days.
Incorrect billing
Verify your first net-metered bill carefully. Raise an immediate dispute if import/export readings seem wrong.
Transformer capacity issues
If feasibility is rejected, appeal to the DISCOM for a transformer upgrade.
System underperformance
Check for panel soiling, inverter issues, or unexpected shading. Use our calculator to verify expected generation.
How to Read Your First Net Metering Bill
Your first bill after net metering activation will look very different from your previous electricity bills. Many homeowners panic when they see unfamiliar line items — understanding each field prevents costly disputes and helps you verify that the DISCOM has applied your credits correctly.
Sample Net Metering Bill Breakdown (Maharashtra, MSEDCL)
Key things to verify on your first net-metered bill: Confirm that the export reading has actually been recorded (some older meters need a manual activation by the DISCOM engineer). Check that the surplus is being carried forward at the correct unit rate, not converted to rupees prematurely. If your DISCOM charges a separate "renewable energy surcharge" or "solar banking fee," this is state-specific and should be declared in your state's tariff order — file a complaint if any undisclosed charge appears.
Gross Metering vs Net Metering: Which is Better?
While net metering is the dominant framework, some states and certain consumer categories are offered gross metering — where all solar power generated is sold to the grid at a feed-in tariff (FiT), and you buy all your household electricity separately at the retail rate. Here is when each makes sense for an Indian residential household:
| Factor | Net Metering | Gross Metering |
|---|---|---|
| Solar revenue per unit | ₹7–11 (retail tariff offset) | ₹2–4 (FiT rate) |
| Daytime self-consumption | Directly offsets retail rate | Sold first, then bought back |
| High-consumption households | Excellent — offsets high slabs | Poor — pays retail for all imports |
| Low-consumption households | Good — credits carry forward | May be better if FiT > self-use offset |
| Bill complexity | Moderate (2 registers) | High (2 separate meters) |
| Who benefits most | Households consuming >400 units/month | Households consuming <150 units/month |
Calculate Subsidy for Your State
Get exact savings based on your DISCOM tariff and 2026 PM Surya Ghar rates.
Frequently Asked Questions
What happens to excess solar power I generate?+
Do all states in India allow net metering?+
Can I sell solar power back to the grid?+
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