Solar Net Metering Explained: How You Get Paid by the Government

Net metering is the single mechanism that turns rooftop solar from "good for the planet" into "good for your wallet." Without it, the surplus electricity your panels generate during the day would simply be wasted. With it, every extra unit you produce becomes a credit on your DISCOM bill.

How net metering works in India

When your solar plant is commissioned, the DISCOM replaces your old electric meter with a bidirectional smart meter. This meter measures two things separately:

• Import: units you draw from the grid (mostly at night and during cloudy days).
• Export: units your solar exports to the grid (the surplus during sunny hours).

At the end of the billing cycle, the DISCOM calculates: net units = import − export. You only pay for the net positive units. If export exceeds import, the extra units carry forward to the next month.

What happens to unused credits at year-end?

This depends on your state policy. In most states, unused credits are settled at a fixed rate (typically the DISCOM's average power purchase cost — around ₹2.5–₹3.5 per unit) and paid out, or simply lapse. Either way, oversizing your system far beyond your usage is rarely worth it.

Net metering vs gross metering vs net billing

• Net metering: import minus export, settled at retail tariff. Most homeowner-friendly. Available for systems up to 500 kW in most states.
• Gross metering: all solar generation goes to the grid at a feed-in tariff (typically ₹3–₹4/unit), and you separately buy all your consumption from the grid. Worse economics for residential consumers.
• Net billing: similar to net metering, but export units are paid at a lower wholesale rate while import is at retail rate. Some states have moved to this model for systems above 10 kW.

State-wise net metering rules

Each State Electricity Regulatory Commission (SERC) sets its own rules on capacity limits, application fees, and settlement. As of 2025:

• Rajasthan, Gujarat, Maharashtra, Karnataka, Tamil Nadu, Telangana: net metering up to 500 kW for residential consumers.
• Some states apply net billing or hybrid net-metering for systems above 10 kW.
• Application fee ranges from ₹500 to ₹5,000 depending on capacity and state.

Common pitfalls

• Sanctioned load mismatch: your solar capacity cannot exceed your sanctioned load. If you have a 5 kW connection, you can install up to 5 kW of solar without enhancing your load.
• Wrong meter installation: always insist on a DISCOM-supplied or DISCOM-certified bidirectional meter, not just any "smart meter."
• Inspection delays: commissioning needs a DISCOM site inspection. A reliable installer schedules this proactively.

Siyag Group handles your net-metering paperwork and inspection coordination as part of every installation. Book a site visit to get started.