Net metering is the policy that makes rooftop solar financially viable in India. Without it, any solar electricity you generate but don’t immediately use would simply be wasted. With it, your surplus solar power flows to the DISCOM grid and earns you a credit against your future electricity bills.
In plain terms: net metering turns your rooftop solar system into a two-way relationship with your electricity company. You buy power from them when the sun isn’t shining, and they buy power from you when your panels are generating more than your home uses.
Key takeaway. Net metering in India allows rooftop solar owners to export surplus power to the DISCOM grid, where each exported unit is set off against a unit you import. Only surplus left after set-off is bought at a lower rate set by your state regulator (₹2.25/unit in Gujarat), or carried forward, depending on the state. Heaven Green Energy handles the complete net metering application, from DISCOM approval to bi-directional meter installation, as part of every residential solar installation.
How Net Metering Actually Works: The Technical Flow
Net metering requires a bi-directional (two-way) electricity meter, one that can count both the power you import from the grid and the power you export to it. Your standard single-direction meter can only count imports.
Here is the complete energy flow on a typical day:
Daytime (9 am – 4 pm, generation period):
- Your solar panels generate 3 kW continuously.
- Your home appliances (fans, fridge, TV) consume 1.2 kW.
- The remaining 1.8 kW flows out through your meter to the DISCOM distribution network.
- Your bi-directional meter’s export register increments by 1.8 kWh every hour.
Nighttime (after sunset):
- Solar generation is zero.
- Your home consumes 1.0 kW from the grid (lighting, TV, fridge).
- Your meter’s import register increments by 1.0 kWh every hour.
At billing time (monthly):
- Total export: 180 kWh (1.8 kW × 5 full-sun hours × 20 sunny days = simplified example)
- Total import: 120 kWh
- Net consumption billed: 120 − 180 = −60 kWh
In a net-negative month, you pay zero for energy on this month’s bill (the minimum demand charge may still apply). What happens to the 60 kWh surplus depends on your state: Maharashtra carries it forward to the next billing period, while Gujarat buys it at the end of the billing cycle at ₹2.25/unit.
The connecting solar to the grid guide covers the technical process of net metering connection in detail.
💡 Fast tip
How surplus credits are settled depends on your state. Gujarat settles every billing cycle and buys the surplus at ₹2.25/unit for the first five years. Maharashtra carries credits forward month to month and buys any unadjusted credits at the end of the financial year at MERC's generic tariff. Check your state's net metering regulation for your settlement terms.
Import Tariff vs. Export Tariff: The Key Financial Asymmetry
The most important thing to understand about net metering in India is the asymmetry between what you pay to import and what you earn on surplus that is left after set-off.
| State / DISCOM | Import Tariff (₹/unit, indicative) | Rate for Surplus Left After Set-Off | Effective “Value” of Self-Consumed Solar |
|---|---|---|---|
| Gujarat (UGVCL/DGVCL) | ₹5.50–₹7.00 | ₹2.25/unit for the first 5 years (GERC) | ₹5.50–₹7.00 |
| Maharashtra (MSEDCL) | ₹6.00–₹9.00 | Carried forward; year-end balance at MERC’s generic tariff | ₹6.00–₹9.00 |
| Rajasthan (JVVNL) | ₹5.50–₹6.50 | Set by RERC | ₹5.50–₹6.50 |
| Delhi (BSES/BYPL) | ₹4.50–₹7.00 | Set by DERC | ₹4.50–₹7.00 |
| Karnataka (BESCOM) | ₹5.00–₹7.00 | Set by KERC | ₹5.00–₹7.00 |
| Tamil Nadu (TNEB) | ₹4.50–₹6.00 | Set by TNERC | ₹4.50–₹6.00 |
Import tariffs are indicative domestic slab ranges (BPL rates excluded); check your DISCOM’s current tariff order. Surplus rules are from the GERC and MERC net metering regulations.
The critical insight: Solar power you use directly in your home avoids paying the import tariff (₹5.50–₹9/unit in most states), and so does each exported unit that is set off against a unit you import in the same settlement period. Surplus beyond your own consumption earns only the lower surplus rate (₹2.25/unit in Gujarat). A used or offset unit is worth 2 to 3× more than a surplus unit.
This is why system sizing matters. An oversized system generates lots of low-value surplus. A correctly sized system maximises self-consumption and reserves export credits for night-time and weekend use.
The Net Metering Application Process in India
Getting a net metering connection involves several steps, each requiring specific documents and approvals. The process varies slightly by state, but the core sequence is the same.
-
Apply for rooftop solar on PM Suryaghar portal: register with your DISCOM consumer number and mobile OTP. The net metering request is integrated with the PM Suryaghar application.
-
DISCOM technical feasibility check: under the Electricity (Rights of Consumers) Rules, complete applications up to 10 kW are deemed accepted without a technical feasibility study (Gujarat and Maharashtra have adopted this). Above 10 kW, the DISCOM must finish the study (transformer capacity on your feeder, connection voltage, no outstanding dues) within 15 days, failing which the proposal is presumed feasible.
-
Receive feasibility approval and proceed with installation: once the application is accepted or approved, installation can begin.
-
Installation completion and compliance documentation: your installer provides a commissioning report, test certificate, single-line diagram (SLD), earthing test certificate, and equipment certificates (BIS/IEC).
-
DISCOM net meter inspection: DISCOM engineer inspects the installation against the approved SLD and the scheme’s technical requirements. If compliant, they replace your existing meter with a bi-directional net meter. The Electricity (Rights of Consumers) Rules give the DISCOM 15 days from submission of your installation certificate to install the meter and commission the system.
-
Meter sealing and connection activation: DISCOM seals the meter, signs the commissioning certificate, and the net metering connection is live. You begin earning export credits from this date.
-
PM Suryaghar subsidy claim: submit the commissioning certificate to the national portal; after DISCOM approval you redeem the e-token, and MNRE’s guidelines have the subsidy processed within 15 days of that approval.
The solar permits guide for Gujarat documents the DISCOM application process specifically for UGVCL, DGVCL, MGVCL, and PGVCL.
Net Metering vs. Gross Metering vs. Net Billing: What’s the Difference?
These three terms are often confused. Here is what each means in the Indian regulatory context.
| Model | How It Works | Who Controls | Financial Outcome |
|---|---|---|---|
| Net metering (dominant model) | Import and export counted separately; billed on net difference | Consumer-led | Best for self-consumption; credits rolled over monthly |
| Gross metering | All solar exported to grid; consumer imports all consumption | DISCOM-led | Consumer earns on all generation; less self-consumption benefit |
| Net billing | Solar valued at avoided cost rate; credits in ₹ not kWh | Regulatory variant | Consumer gets cash value of export; typically lower than avoided cost |
Net metering is the standard model for residential rooftop solar in most states. Each State Electricity Regulatory Commission sets the limits: Gujarat allows net metering from 1 kW to 1,000 kW, and where a state’s regulations do not provide for it, the Electricity (Rights of Consumers) Rules let the commission allow net metering up to 500 kW or the sanctioned load, whichever is lower. Larger consumers may use gross metering or open access.
Get a free net metering assistance quote. Our team handles the complete DISCOM application, from feasibility to meter installation. Get your free quote →
The Heaven Green Net Metering Guarantee
Across our 10,000+ installations, 98.7% of our DISCOM net metering applications have been approved on the first submission. The 1.3% that required resubmission were due to DISCOM database errors (incorrect consumer number mapping), not installation faults.
Our process for ensuring first-pass approval follows the Heaven Green Net Metering Compliance Protocol: seven document checks we complete before submitting to any DISCOM:
- Consumer name on electricity bill matches Aadhaar exactly
- Sanctioned load on file ≥ proposed system size (in kW)
- BIS IS 14286 panel certificate for each panel brand
- IEC 62109 / IS 16221 inverter certificate with serial number
- Earthing test certificate (resistance ≤ 5 ohm per MNRE’s PM Surya Ghar specification; earthing per IS 3043)
- Single-line diagram (SLD) stamped by a licensed electrical supervisor
- No outstanding electricity dues on the consumer account
This protocol avoids the most common reasons for DISCOM rejection.
Pros and Cons of Net Metering
- Surplus solar power earns bill credits, no generation is wasted
- Exported units are set off unit for unit against imported units
- Effectively makes the grid a free battery for daytime generation
- No separate DISCOM approval needed beyond the system application
- Complete applications up to 10 kW are deemed accepted without a feasibility study
- Surplus after set-off is bought at a much lower rate than the import tariff (₹2.25/unit in Gujarat)
- Large surpluses are poorly monetised, so oversizing does not pay
- DISCOM meter installation can take 30 to 60 days in some areas
- Minimum demand charge still payable even in zero-bill months
How to Read Your Net Metering Bill
Your first post-solar electricity bill will look different from your previous ones. Here is what each line item means:
Units imported (T1): Grid electricity you consumed when solar wasn’t generating, nights, early mornings, cloudy periods.
Units exported (T2): Solar power you sent to the grid.
Net units billed: T1 − T2. If positive, you pay for this. If negative, the surplus is carried forward or bought by the DISCOM, depending on your state.
Energy charges: Net units billed × applicable domestic slab tariff.
Fixed / demand charge: A flat monthly charge regardless of consumption. Varies from ₹20 to ₹200+ depending on state and connection type. This charge doesn’t go away with solar.
Net metering credit or surplus payment: The units carried forward to the next billing period, or the amount paid for surplus at the state’s surplus rate.
The solar net metering detailed guide explains each billing line item with examples from Gujarat, Maharashtra, and Rajasthan.
📘 Regulation note
Under the Electricity (Rights of Consumers) Rules 2020, as amended in February 2024, complete applications for rooftop systems up to 10 kW are deemed accepted without a technical feasibility study, and the DISCOM must install the meter and commission the system within 15 days of your installation certificate. If your DISCOM misses these timelines, you can escalate through its consumer grievance redressal forum. See the Ministry of Power website for the Rules.
Virtual Net Metering and Group Net Metering
Two extensions of standard net metering are increasingly available in India:
Virtual net metering: Allows a consumer to register a solar system at a different location (e.g., a rooftop farm in a village) and credit the generation against an electricity connection in a different zone. Useful for commercial consumers with multiple connections. Available in select states under SERC virtual net metering regulations.
Group net metering / housing society solar: Multiple electricity connections in a housing complex can pool solar generation from a shared rooftop system, with each connection receiving a proportional credit. This allows apartment dwellers who don’t own their own roof to benefit from rooftop solar. MNRE’s PM Surya Ghar guidelines make group and virtual net metering installations eligible for subsidy where the DISCOM approves the arrangement.
If you rent rather than own, read our dedicated guide to solar for tenants and renters for portable kits, landlord NOCs, and which states currently support this shared model.
How Heaven Green Energy Handles Net Metering End to End
Heaven Green Energy manages the complete net metering process, from DISCOM application to meter installation to first bill verification. We have active empanelment across UGVCL, DGVCL, MGVCL, PGVCL (Gujarat), MSEDCL (Maharashtra), and RRECL (Rajasthan).
Our process guarantees that your net meter is installed and active before we consider the project closed. We also verify your first post-installation DISCOM bill to confirm the net metering credits are appearing correctly.
- Residential Solar: complete installations with net metering handled.
- Solar Net Metering Guide: detailed explanation of how your credits are calculated.
- Solar Calculator: see your estimated net metering credits and bill savings.
- Contact our team: net metering assistance and DISCOM application support.
Frequently Asked Questions
Is net metering available in all states of India?
Net metering is available across India. The Electricity (Rights of Consumers) Rules 2020 let any consumer install rooftop solar as a prosumer, and each State Electricity Regulatory Commission sets the metering arrangement, surplus rates, credit rollover policies, and system size limits. All major states including Gujarat, Maharashtra, Rajasthan, Karnataka, Tamil Nadu, Delhi, and Telangana have active net metering policies.
How much do I earn per unit exported under net metering in India?
Exported units are first set off against the units you import, so each one saves your full import tariff. Only surplus left after set-off earns the state’s surplus rate: in Gujarat it is ₹2.25/unit for the first five years, and in Maharashtra year-end surplus is bought at MERC’s generic tariff. Other states set their own rates. These rates are lower than import tariffs (₹5–₹9/unit), which is why sizing to your own consumption is more valuable than maximising export.
How long does it take to get a net meter installed?
After installation and submission of the installation certificate to your DISCOM, the Electricity (Rights of Consumers) Rules give the DISCOM 15 days to install the net meter and commission the system. In practice, busy urban DISCOMs like MSEDCL and Torrent Power Ahmedabad may take 30 to 45 days during peak application seasons. Heaven Green Energy tracks every pending net meter installation and escalates to DISCOM if the deadline is missed.
What happens to unused net metering credits?
It depends on the state. In Maharashtra, if you export more than you import in July, the surplus rolls into August’s bill, and credits still unadjusted at the end of the financial year (31 March) are bought at MERC’s generic tariff. In Gujarat, residential surplus is not carried forward: it is bought at the end of each billing cycle at ₹2.25/unit for the first five years. Check your state SERC’s net metering regulation for the specific policy.
Can tenants or flat owners in an apartment get net metering?
Yes, under group net metering or virtual net metering schemes available in progressive states. A housing society can install solar on the common terrace, and each flat gets a proportional credit. Individual flat owners cannot independently install systems on common terrace areas without society approval. For independent floors in a building, individual net metering connections are possible if each floor has its own DISCOM connection.
Does net metering affect my DISCOM bill’s fixed charges?
No. The fixed demand charge (typically ₹20–₹200/month depending on your state and connection type) remains on your bill regardless of how much solar you generate. This charge covers the cost of maintaining the grid connection to your property. Even in months where your net consumption is zero or negative, you pay the minimum demand charge. Factor this into your payback calculations.