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Net metering in India, explained

Net metering is what makes rooftop solar actually save you money. It's the mechanism that credits you for the surplus power your panels send back to the grid. Here's how it works and why the rules matter.

At a glance, 10-second read

  • ▸Daytime surplus flows to the grid; you get credits that offset your night-time usage.
  • ▸Systems up to 5kW are generally exempt from extra net metering charges nationally.
  • ▸Net metering (unit-for-unit) beats net billing (lower export rate), check which one your state runs.
  • ▸Your DISCOM installs the bidirectional meter after inspection; the subsidy releases after commissioning.
Sunlight hits your rooftop panels, the inverter converts DC to AC for your home, and the net meter sends surplus power to the grid for credit. SunlightRooftop panelsgenerate DC powerInverterDC to ACmakes it usableYour homeuses power firstNET METERThe gridsurplus = creditat night you draw back
Daytime: panels power your home and export the surplus through the net meter. Night: you draw from the grid as usual. Your bill nets the two off, that's net metering.

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What is Net Metering?, full explanation in HindiWhat is Net Metering?, full explanation in Hindi

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What is net metering?

Your solar panels generate the most power during the day, often more than your home uses at that moment. With net metering, that surplus flows back into the grid and your meter runs backwards, building up credits. At night, when your panels aren't producing, you draw from the grid and those credits are used up. At the end of the billing cycle, you only pay for your net consumption, hence "net metering".

Net metering vs net billing vs gross metering

Net metering

You're credited unit-for-unit at the retail tariff. The most favourable arrangement for homeowners, 1 unit exported offsets 1 unit imported.

Net billing / net feed-in

Exported units are paid at a lower feed-in rate than the retail tariff you pay for imports. Less favourable, and increasingly common as states revise policy.

Gross metering

All generation is sold to the DISCOM at a fixed rate, and you buy all your consumption separately. Usually used for larger systems, rarely ideal for a typical home.

The 5kW threshold

Under central guidelines, residential systems up to 5kW are generally exempt from additional net metering charges. Above that, State Electricity Regulatory Commissions (SERCs) are allowed to levy a progressive charge on prosumers, so a larger system can carry extra per-unit costs. This is one reason our calculator flags whether your recommended system stays within the exempt range.

How to get net metering approved

  1. Register your rooftop solar application on the national PM Surya Ghar portal.
  2. Get your system installed by an MNRE-empanelled / DISCOM-approved vendor.
  3. Apply to your DISCOM for net metering, they inspect and install a bidirectional meter.
  4. After inspection and commissioning, net metering goes live and the subsidy is disbursed.

Timelines vary by state, typically 15-45 days for the net meter after installation, depending on DISCOM backlog. Check your state's details for specifics.

Net metering rules are set by each state's SERC and are being actively revised in 2026 as rooftop adoption grows. Confirm the current arrangement (net metering vs net billing, and any charges above5kW) with your DISCOM before finalising your system size.