Net Metering in India, Explained
Net metering is what makes on-grid rooftop solar pay in India. Your panels feed surplus power into the grid during the day, and you draw it back at night. You are billed only for the difference. Here is how it works, what the national rules say, and how exported units are valued.
In one line: a bi-directional meter records units you import from the grid and units you export to it. Under net metering, exports are set off against imports, and you pay only for the net units you used.
How net metering works
A normal meter counts only one way. When you install an on-grid system, your DISCOM replaces it with a bi-directional (net) meter that records two numbers: units imported from the grid and units exported to it. Your rooftop panels power your home first. Anything they produce beyond what you are using at that moment flows out to the grid and is counted as an export.
At the end of the billing cycle, the DISCOM subtracts your exports from your imports. If you imported more, you pay for the difference. If you exported more, the surplus is carried forward as a credit to the next bill.
A month on net metering: worked example
Say your home uses 400 units in a month and your panels generate 350:
| What happens | Units |
|---|
| Solar used directly in the home (daytime) | 230 |
| Solar exported to the grid (surplus) | 120 |
| Imported from the grid (evenings, night, cloudy hours) | 170 |
| Billed: imports − exports | 50 |
Without solar you would pay for 400 units. With net metering you pay for 50, plus fixed charges, which solar doesn't change.
Net metering vs net billing vs gross metering
"Net metering" is often used loosely for any rooftop export arrangement, but there are three distinct models. Which ones are available, and for whom, is decided by your state electricity regulatory commission.
| Model | How exports are valued | Effect for you |
|---|
| Net metering | Unit for unit against your imports | An exported unit offsets an imported one at your full tariff. The best deal for homes. |
| Net billing / net feed-in | Exports paid at a fixed feed-in rate, imports charged at your tariff | Exports are worth less than imports, so self-consumption matters more. |
| Gross metering | All generation sold to the DISCOM at a feed-in rate | You buy all your consumption at your normal tariff. Used for large systems. |
What the national rules say
Rooftop solar connections are governed by the Electricity (Rights of Consumers) Rules, 2020, as amended, with the details set by each state commission's regulations:
- Net metering up to 500 kW or your sanctioned load, whichever is lower. The 2021 amendment allows net metering for systems up to 500 kW, but not larger than your sanctioned load. Systems above 500 kW use gross metering. For homes, this means the sanctioned load is the real limit.
- No feasibility study up to 10 kW. Since the 2024 amendment, systems up to 10 kW are exempt from the DISCOM's technical feasibility study. For larger systems, the study must be completed within 15 days.
- Faster commissioning. The 2024 amendment cut the time the DISCOM has to commission a rooftop system from 30 days to 15.
- Time-of-day tariffs. The rules allow state commissions to introduce time-of-day tariffs for prosumers, to encourage storage that supplies power at peak hours.
What happens to surplus units
Credits normally roll forward from bill to bill within a settlement period, usually the financial year. What happens to units still unused at the end depends on your state. Many DISCOMs pay for them at a buyback rate set by the regulator, typically ₹2–3.5 per unit, far below the ₹4–7.5 you pay for grid power. In some cases leftover credits lapse. Either way, a system much larger than your consumption earns little from the extra units. Check your state's buyback rate on our state tariff pages.
How our calculator values exports
The rooftop solar calculator takes a cautious view. It assumes you use 65% of your generation directly, up to your own consumption, saving your full tariff, and it values every exported unit at your DISCOM's buyback rate. Take a Delhi home using 430 units a month with a 2.7 kW system: it generates about 4,230 units a year, uses about 2,750 directly and exports about 1,480. That is valued at about ₹24,450 a year (₹19,260 in savings plus ₹5,190 in export credit).
If every exported unit instead offset an import at the full ₹7 tariff, as pure net metering allows within a billing cycle, the same system would be worth about ₹29,600 a year. Your real figure will fall between the two, depending on your state's settlement rules and tariff slabs. So the calculator's payback is, if anything, slightly pessimistic.
How to get a net meter
- Apply for a rooftop solar connection on your DISCOM's portal or the PM Surya Ghar national portal (the latter if you want the subsidy).
- Get feasibility approval. Systems up to 10 kW don't need a technical study.
- Have the system installed. For the subsidy, use a registered vendor and approved panels.
- Submit the installation details. The DISCOM inspects the system, installs the bi-directional meter and commissions it.
The PM Surya Ghar subsidy guide walks through the portal steps and the subsidy claim.
Making the most of net metering
- Size to your consumption. Units you use yourself, or offset within the billing cycle, are worth far more than year-end surplus. How many solar panels do I need? shows the sizing maths.
- Shift heavy loads to daytime. Washing, water heating, pumps and EV charging during sunshine raise direct use.
- Check your sanctioned load first. If you want a system larger than your connection, apply for a load enhancement before you buy.
Frequently asked questions
Is net metering available without the PM Surya Ghar subsidy?
Yes. Net metering comes from the electricity consumer rules and your state's regulations, not from the subsidy scheme. You can install on-grid solar without the subsidy and still apply for net metering. Systems that skip the subsidy are not bound by its domestic-content panel requirement.
Does net metering work during a power cut?
No. On-grid inverters shut down automatically when the grid fails, for the safety of line workers. To keep power during outages you need a battery, through a
hybrid system.
Who pays for the net meter?
Usually the consumer, either buying it from the DISCOM or from an approved meter vendor. Charges vary by state. Our calculator budgets ₹8,000 for the net meter in every on-grid estimate.
Can I install a system bigger than my sanctioned load?
Net metering is allowed only up to your sanctioned load. If you want a bigger system, apply to your DISCOM to increase the sanctioned load first.
Related guides
- Solar panel cost in India (2026) — price per kW, 1–10 kW price list and cost after subsidy
- How many solar panels do I need? — sizing from your monthly units, with tables
- Solar generation per kW — units per day, month and year by state and system size
- On-grid solar guide — net metering, cost per kW, subsidy and payback
- Hybrid solar guide — grid export plus a small battery for power cuts
- Earning from surplus space — oversizing on a big terrace, warehouse roof or plot
- Commercial rooftop solar — sizing, cost, depreciation and payback for businesses
- PM Surya Ghar subsidy explained — slabs, eligibility and how to apply
- State electricity tariffs — tariff, buyback rate and payback for 22 states
See what net metering is worth to you
Enter your bill and state. The calculator splits your generation into self-use and export, and shows savings, export credit and payback.
Open the rooftop solar calculator →
ℹ️This is a general explanation, not legal advice. Net metering limits, settlement periods, buyback rates and charges are set by each state's electricity regulatory commission and DISCOM, and change from time to time. Confirm the current rules with your DISCOM before you install.