Net metering is a billing arrangement where your rooftop solar system sends surplus electricity to the grid and you are credited for it against the power you draw later. A bidirectional meter records both the units you import from and export to the grid, and your bill is based on the net difference.
Net metering is a big reason rooftop solar pays off for Indian homes and businesses. This guide explains how it works, how it differs from other metering models and how to apply.
Key Takeaways
- A net meter is a bidirectional meter that records units imported from the grid and units exported to it.
- Your bill is based on net consumption, so exported solar units offset the units you draw when the sun is down.
- Net metering, net billing and gross metering work differently. Which one applies depends on your state regulator and DISCOM.
- Rules on credit carry-forward, year-end settlement and system size limits vary by state, so confirm with your DISCOM.
- Applying for the net meter is part of the PM Surya Ghar subsidy process for homes.
What Is Net Metering?
Solar panels produce most power in the daytime, often when your building uses less. Net metering solves this mismatch. The surplus goes to the grid instead of being wasted, and later, at night, you draw from the grid. Your electricity company bills you only for the net units.
How Does Net Metering Work? Step by Step
- Panels generate power. Your building uses the solar electricity first.
- Surplus flows to the grid. When solar output is higher than your use, the extra goes out through the net meter.
- The meter records exports. The bidirectional meter counts exported and imported units separately.
- You draw from the grid when needed. At night or on cloudy days, imported units are recorded.
- Your bill uses the net figure. If exports exceed imports, you carry credit forward or are paid as per your state rules.
A simple monthly example
Suppose in one month your system exports 300 units and you import 250 units from the grid. Your net position is 50 units in credit. Depending on your state rules, those 50 units are carried forward to the next bill or settled at the end of the billing year. Fixed charges and taxes on your bill may still apply.
Net Metering vs Net Billing vs Gross Metering
| Model | How it works | What you get |
|---|---|---|
| Net metering | Exported units are offset against imported units | Lower bill, with surplus credit carried forward |
| Net billing | Exports are valued at a rate set by the regulator, imports at the retail tariff | Bill credit based on the export rate |
| Gross metering | All solar output is sold to the utility and all consumption is bought separately | Payment for every unit generated, at a fixed rate |
Most residential rooftop solar systems in India work under net metering or a close variant of it. The exact model and rates are decided by your State Electricity Regulatory Commission, so check with your DISCOM.
How to Get a Net Meter for Rooftop Solar
- Apply to your DISCOM. For homes under PM Surya Ghar, apply through the national portal. Others apply through the DISCOM portal or office.
- Get approval. The DISCOM checks your sanctioned load and the proposed system size.
- Install the system. Use a qualified installer and equipment that meets the norms.
- Inspection. The DISCOM inspects the plant for safety and compliance.
- Net meter installation and commissioning. Once the bidirectional meter is installed and the plant is commissioned, exports start counting.
Keep your electricity bill, ID proof, installer details and system specifications handy. The PM Surya Ghar portal shows the current steps for residential applicants.
What Are the Benefits of Net Metering?
- Lower electricity bills: surplus units reduce what you pay for imports.
- No battery needed: the grid acts as your storage, which saves cost and maintenance. Compare options in our guide to on-grid, off-grid and hybrid systems.
- Faster payback: fewer wasted units means savings arrive sooner.
- Cleaner power: more renewable energy feeds the grid.
What Should You Check Before Applying?
- Your state's current net metering or net billing policy
- The maximum system size allowed for your sanctioned load
- How credits are carried forward and when they are settled
- Meter and inspection fees, if any
- Expected timelines for approval and commissioning
Policies are updated from time to time, so rely on your DISCOM or State Electricity Regulatory Commission for the latest terms.
Who Can Apply for Net Metering?
Home owners, housing societies, businesses and industries that install grid-connected solar can generally apply, subject to the rules of their state and DISCOM. You need a valid electricity connection in your name and a system that fits within the limits set by your DISCOM, which are commonly linked to your sanctioned load. For homes applying under PM Surya Ghar, the net meter request is part of the application process.
How Does Sanctioned Load Affect Your System Size?
Many DISCOMs set the maximum size of a net-metered system with reference to your sanctioned load, which is the electricity load approved for your connection. If your planned solar system is larger than your sanctioned load allows, you may need to apply for a load increase or reduce the system size. Check this early, as it can affect your quote. Our rooftop solar planning guide explains how to size a system.
How to Read Your Electricity Bill After Net Metering
A net-metered bill usually shows several lines. Names can differ by DISCOM, but look for these:
| Item on the bill | What it means |
|---|---|
| Units imported | Electricity drawn from the grid |
| Units exported | Surplus solar electricity sent to the grid |
| Net units | Imported minus exported units for the billing period |
| Credit carried forward | Surplus units adjusted against future bills, where your state allows it |
| Fixed or demand charges | Charges that may still apply even when net units are low or zero |
How Can You Get the Most From Net Metering?
- Shift daytime use: run the washing machine, water pump and other flexible loads when the sun is strong, so you use more of your own power.
- Size the system sensibly: match your annual consumption instead of far over- or under-sizing.
- Keep panels clean: higher output means more units exported. See our maintenance guide.
- Check your bill monthly: make sure exports are recorded and credited correctly.
- Review tariff changes: time-of-day or other tariff changes can change the value of your exported units.
What Problems Do People Face With Net Metering?
| Problem | Common cause | What to do |
|---|---|---|
| Long wait for the net meter | Incomplete documents or pending inspection | Submit complete paperwork and follow up with your DISCOM |
| Exports not showing on the bill | Meter not configured or billing not updated | Raise a complaint with your DISCOM with your meter number and readings |
| System size not approved | Exceeds sanctioned load limit | Reduce size or request a load increase |
| Credits lower than expected | Different settlement rules or fixed charges | Ask for the billing rules in writing |
| Solar stops in a power cut | Anti-islanding safety in grid-tied inverters | Expected. Consider a hybrid system for backup |
Net Metering for Apartments, Societies and Businesses
Housing societies and commercial users may have separate provisions, limits or billing models, such as virtual or group arrangements in some states. Rules differ widely, so ask your DISCOM about options for common areas, shared rooftops and large consumers before you design the system.
Final Thoughts
Net metering turns your rooftop into a small power plant that works with the grid. It is simple in concept: export what you do not use, import what you need and pay only for the difference. Understanding your state's rules before installation helps you size the system correctly and avoid delays.
Need help with the paperwork? Contact a certified solar installer for a free site assessment and support with the net meter application.
Frequently Asked Questions
What is net metering in simple terms?
Net metering lets you send extra solar power to the grid and get credit for it. Your bill is based on the difference between the units you import and the units you export.
How does a net meter work?
A net meter is a bidirectional meter. It records electricity flowing from the grid to your building and from your solar system back to the grid, so your bill reflects the net units.
Is net metering available in all states of India?
Net metering or a similar arrangement is offered widely, but the rules, limits and rates are set by each state regulator and DISCOM. Check your state's current policy.
What happens to extra solar units at the end of the year?
It depends on your state rules. Surplus credit is usually carried forward within the year, and any remaining units may be settled at a rate set by the regulator.
What is the difference between net metering and gross metering?
In net metering, exported units offset imported units. In gross metering, all solar output is sold to the utility and all your consumption is bought separately.
Do I need a net meter for the PM Surya Ghar subsidy?
Yes, the application process includes applying for a net meter after installation, and the DISCOM inspects and commissions the plant before the subsidy is released.
Does net metering work during a power cut?
No. A grid-tied system shuts down during an outage for safety, even with a net meter. A battery-based hybrid system is needed for backup.
How long does it take to get a net meter?
Timelines vary by DISCOM and state. Delays are often caused by incomplete documents or inspection scheduling, so submit complete paperwork and follow up regularly.
Does sanctioned load limit my solar system size?
In many states the maximum net-metered system size is linked to your sanctioned load. Check with your DISCOM, and if needed, apply for a load increase or reduce the system size.
Will I still pay a bill with net metering?
Often yes. Even when net units are low or zero, fixed charges and taxes may still apply, depending on your tariff and state rules.
How can I increase my savings with net metering?
Use more electricity during the day, keep panels clean, size the system to your needs and check each bill to confirm exports are credited.
Can housing societies use net metering?
Many DISCOMs have provisions for housing societies and shared rooftops, but the rules vary by state. Ask your DISCOM about the options for your building.