If you have been reading about rooftop solar for your home, you must have heard about the term net metering. Net metering in India is one of the important components of on-grid and hybrid solar systems to allow the user to receive the credits and reduce their bills.
In this blog, we will walk you through everything regarding its working process, eligibility, state-wise rules, and the application process. We have discussed the difference between net metering and gross metering to help you make informed decisions. If you need any assistance in understanding net metering, Sunora Solar is here for you.
What Is Net Metering And Why Is It Important?
Net metering is a billing mechanism where you can send your surplus solar energy to the grid and receive credit points for it. These credit points are used to reduce your electricity bills when you must pull power from the grid.
The net metering system is regulated by the Ministry of New and Renewable Energy (MNRE) and state electricity regulatory commissions. Net metering benefits attract more residents to install rooftop solar to support sustainable energy missions across India.
Net Metering Eligibility For Rooftop Solar
You must meet certain criteria to get net metering approval. While many rules vary for each state, the following are some common net metering eligibility criteria for most solar projects.
System size
For most states, the system size cap for getting rooftop net metering is between 1 kW and 1 MW. Your system capacity must not exceed the sanctioned load based on DISCOM analysis. For larger systems for commercial use, setting up a Battery Energy Storage System (BESS) is mandatory to get a net metering connection.
Consumer category
In most Indian states, residential, commercial, and industrial customers are eligible to get net metering. However, if you have a large-scale solar system, you should cross-check your eligibility with your state’s DISCOM.
Property ownership
You need to own the property at which you want to install the solar panel. You will need the title deed of the property and a valid, active electricity connection in your name to get net metering approval.
Technical compatibility
The local DISCOM will conduct a feasibility test to determine your ideal system size and site compatibility for solar installation. This feasibility is essential to get net metering connections in India.
Approved equipments
The quality of all your solar system equipment must meet the MNRE standards. If you are applying for PM Surya Ghar Muft Bijli Yojana, you must choose an ALMM-approved supplier to get the net metering connection and subsidy.
No overdue bills
When you apply for net metering, you shouldn’t have any outstanding bills due to the local grid supplier. Thus, before applying, pay all your electricity bills for smooth processing and approval.
How Net Metering Works For Solar?
The workflow of net metering is much easier to understand. The following is how the current flows with a net metering connection to reduce your electricity bills:
- The energy generated by your solar system is used to run your home, office, or factory.
- The surplus power left after consumption flows back to the grid through a net metering device
- The bilateral net metering device tracks how much power you have consumed and how much surplus to provide to the grid.
- At the billing time, the difference between power import and export is calculated. If import surpasses export, you must pay the bills. If the export surpasses import, you receive credits that can be used in the future to offset bills.
Net Metering Vs Gross Metering: What’s The Difference?
In net metering, the energy generated from the solar system is used to power your home or office, and the surplus is sent to the grid. Here, a bilateral meter is used to track the import and export of power to calculate the final bill.
In gross metering, you need to sell all the solar energy to the grid at a pre-fixed rate called Feed-in Tariff (FiT). Then, you use the utility grid connection to power your house normally and pay the bill at the retail rate. In this case, electricity exports and imports are treated as separate transactions and measured with separate metres.
| Net Metering | Gross Metering | |
| Self consumption | Yes | No |
| Revenue | Credit points based on the difference between export and consumption | Fixed payment per unit exported |
| Bill reduction | Higher | Moderate as the retail tariffs are usually higher than the FiT |
| Tracking system | Through single bilateral meter | Through a separate import and export meters |
| Best for | Residential and small commercial projects | Large commercial and industrial projects |
Since the retail tariff for residential use is higher, the gross metering might not be the best choice for residential rooftop solar systems. Net metering in India is much more suitable for all types of solar systems.
Net Metering Policies By State
The rules for net metering in India vary state-by-state. The following table gives us a quick glance of net metering policies for different states:
| Capacity Limit | Regulatory Authority | DISCOMs | DISCOM Approval Timeline | Effective Open Access (OA) charge in Rupees (₹) | |
| Gujarat | 1 MW | Gujarat Electricity Regulatory Commission (GERC) | UGVCL, DGVCL, PGVCL, and MGVCL | 30-45 days | 1 to 1.4 per kWh |
| Maharashtra | 1 MW | Maharashtra Electricity Regulatory Commission (MERC) | MSEDCL, BEST (Mumbai), Adani Electricity, and Tata Power | 45-90 days | 2.5 to 3.5 per kWh |
| Rajasthan | 1 MW | Rajasthan Electricity Regulatory Commission (RERC) | JVVNL (Jaipur), AVVNL (Ajmer), and JdVVNL (Jodhpur) | 30-60 days | 0.9 to 1.3 per kWh |
| Tamil Nadu | 1 MW | Tamil Nadu Electricity Regulatory Commission (TNERC) | TANGEDCO | 45-60 days | 1.4 to 2 per kWh |
| Karnataka | 100 kW | Karnataka Electricity Regulatory Commission (KERC) | BESCOM (Bangalore), MESCOM, HESCOM, GESCOM, and CESC | 30-45 days | 1.6 to 2.5 per kWh |
| Uttar Pradesh | 1 MW | Uttar Pradesh Electricity Regulatory Commission (UPERC) | MVVNL, LESA, PVVNL, DVVNL, PuVVNL, and KESCO | 90-180 days | 2 to 3 per kWh |
Step-By-Step Net Metering Application Process
The following is the general framework to get net metering in India:
Connect With Qualified Installer
When you connect with an MNRE-approved solar company, like Sunora Solar, you can get insight into the size of your solar system and net metering. Our team will help you understand the application process and assist you in getting the approval.
Submit Application In DISCOM
You can apply to the relevant DISCOM through your state’s dedicated net metering portal or the PM Surya Ghar portal. You need to provide necessary information like current electricity connection, desired system size, property address, and more.
The following is a net metering document checklist:
- Recent electricity bill (last 6 months)
- Property ownership documents or NOC from housing society
- Aadhaar card and PAN
- Roof photographs and site layout
- Solar equipment datasheets (panel and inverter specs)
- Single-line diagram of the proposed installation
Pass The Feasibility Check
After you submit the application, the local DISCOM will assess your power requirements and the appropriateness of your location for solar installation. Inspection time differs from state to state.
Installation Of Solar System
To avail the subsidy and net metering approval, you need to approach an ALMM listed solar panel provider like Sunora Solar.
System Inspection By The DISCOM
Once the solar installation is complete, the DISCOM inspects the installed system and issues a commissioning certificate. This certificate is vital to start the installation of a net meter.
Net Metering Installation
The local regulatory authority will install a bilateral or unilateral meter to track the import and export of solar energy. A monthly bill will be generated based on the readings of the meter.
Sunora Solar can help you to learn more about net metering for residential, commercial or industrial projects. Please contact us for assistance.
Conclusion
Net metering in India helps you reduce your electricity bills by offering your surplus solar energy to the local grid. The net meter calculates the difference between import and export of energy to create a bill or offer you credit points. All states have varying policies and processing dates. Thus, you should connect with solar companies, like Sunora Solar, to know what rules apply to you.
FAQs
What is net metering in India?
Net Metering is a billing system for on-grid and hybrid solar systems. Here, you can send surplus solar energy generated by your system to the grid to reduce your electricity bills for importing grid electricity.
How to calculate solar net metering?
You can calculate net metering by tracking the import and export of energy through the meter. Over the month, if your import is higher than export, you pay the bill, and if the export is more than import, you get credit points to offset the bills in the future.
Which state has the highest subsidy on solar?
PM Surya Ghar Subsidy is the same in all states but some states also provide their own subsidies at the state level to reduce the financial burden. Gujarat, Delhi and Uttar Pradesh are among the top states with the highest state level subsidies at the state level.
What is the net metering approval time?
The solar panel approval time varies with each state. It can take anywhere between 30 and 180 days based on the state. Contact Sunora Solar to get a better estimate for net metering approval.
