What is Net Metering?

Net metering is a billing policy that allows grid-connected solar prosumers to export surplus generation to the DISCOM grid and receive energy credits that offset future electricity bills.

How it works in India

1. A bidirectional (net) meter is installed by the DISCOM.
2. During daylight, solar generation first meets the site load; surplus is exported.
3. After 6 PM, the site imports grid power — imported units are netted against exported units.
4. At monthly settlement, net consumed units are billed at normal tariff. Excess credits carry forward.

Regulatory framework

Governed by the CEA (Metering) Regulations 2006 and state SERC orders. MNRE's Rooftop Solar Programme Phase II mandated net metering access for all eligible consumers up to 500 kW.

Eligibility

Most states allow net metering for systems up to 90% of the sanctioned load. Delhi, Maharashtra, Karnataka, and Rajasthan each have over 1 GW of net-metered capacity as of 2025.

Net Metering vs Gross Metering

Under gross metering, all solar generation is exported at a fixed feed-in tariff; all consumption imported at retail rate. Net metering is simpler and preferred for residential systems.