One of the biggest reasons people switch to solar is the promise of lower electricity bills. But have you ever wondered: “What happens when my solar panels generate more electricity than I use?”
This is where Net Metering comes in.
Net metering allows you to send extra solar power to the grid and get credits from your electricity company. Later, when your panels don’t generate enough (like at night), you can use those credits to offset your bill.
In this blog, we’ll explain:
- What is solar net metering?
- How does it work in India?
- Benefits & disadvantages
- Eligibility and application process
- Latest updates for 2025
By the end, you’ll know if net metering is the right choice for your solar setup.
🔹 What is Net Metering?
Definition:
Net metering is a billing mechanism where any extra electricity produced by your solar panels is exported to the grid. In return, your power company provides energy credits that reduce your monthly bill.
👉 Example:
- Your solar system generates 400 units/month
- You consume 300 units/month
- Extra 100 units go to the grid
- These 100 units are credited, and your electricity bill reduces accordingly
🔹 How Does Net Metering Work?
- Solar Power Generation – Your solar panels generate DC electricity, which is converted to AC by the inverter.
- Consumption First – This energy powers your home appliances directly.
- Excess Energy Export – Extra energy goes to the grid through a bi-directional meter.
- Credit Adjustment – The DISCOM (electricity board) records how much you exported vs. how much you consumed.
- Billing – You pay only for the net difference.
📌 This is why it’s called Net Metering – because you’re billed only for the net usage.
🔹 Types of Net Metering in India
- Gross Metering
- All generated solar power is sent to the grid.
- You get paid a fixed tariff per unit.
- Best for industries with large solar plants.
- Net Metering
- Power is first used for self-consumption.
- Excess goes to the grid, and credits reduce your bill.
- Best for homes and small businesses.
- Net Billing
- Excess power exported to the grid is credited, but at a lower tariff than import.
🔹 Benefits of Net Metering
✅ Huge Savings – Reduce electricity bills up to 80–90%.
✅ No Need for Big Batteries – Grid acts as a virtual battery.
✅ Eco-Friendly – Supports renewable energy adoption.
✅ Government Subsidy + Net Metering – Double savings.
✅ Long-Term ROI – Payback period reduced to 4–5 years.
🔹 Disadvantages of Net Metering
❌ Policy Restrictions – Different states have different rules.
❌ Export Limits – Some DISCOMs cap solar capacity (e.g., 1 MW max).
❌ Approval Delays – Paperwork and installation of bi-directional meters take time.
❌ Credit Expiry – In some states, unused credits lapse annually.
🔹 Net Metering Policy in India (2025 Updates)
- Residential Solar Users – Eligible for net metering up to 500 kW.
- Commercial/Industrial Users – Capped at 1 MW in most states.
- Settlement Cycle – Monthly adjustment of units; annual settlement for remaining credits.
- Smart Bi-Directional Meter – Mandatory for all new solar net metering connections.
- DISCOM Guidelines – Each state DISCOM has its own rules (Rajasthan, Gujarat, Maharashtra, Delhi, etc.).
👉 In 2025, the Government of India continues to support rooftop solar adoption through net metering and subsidies under the PM-Surya Ghar Scheme.
🔹 Application Process for Net Metering in India
- Apply Online on your state DISCOM’s portal.
- Submit Documents (ID proof, electricity bill, solar installation details).
- Inspection by DISCOM – Technical feasibility check.
- Approval & Agreement – Sign net metering agreement.
- Installation of Bi-Directional Meter – Tracks import & export of power.
- Commissioning – Your system goes live.
⏱️ Timeline: 30–90 days depending on the state.
🔹 Net Metering vs. Solar Battery Storage
| Feature | Net Metering | Battery Storage |
|---|---|---|
| Cost | Low (just bi-directional meter) | High (₹70,000–₹1,00,000 per 5 kWh battery) |
| Backup Power | ❌ No backup in power cuts | ✅ Backup available |
| Savings | ✅ Higher (grid acts as storage) | Moderate |
| Maintenance | Low | High |
👉 Best Option:
- If you face frequent power cuts, add a hybrid system (solar + battery + net metering).
- If power cuts are rare, net metering alone is enough.
🔹 Example: Net Metering Calculation
Suppose you have a 5 kW solar system in Delhi:
- Monthly generation = ~600 units
- Monthly consumption = 500 units
- Exported to grid = 100 units
👉 Electricity Bill = ZERO
(Since exported 100 units cover extra consumption in future months)
🔹 FAQs
Q1: What is net metering in simple words?
👉 It’s a system where extra solar power goes to the grid, and you get bill credits.
Q2: Is net metering available in all states of India?
👉 Yes, but policies differ. Some states allow up to 500 kW, others up to 1 MW.
Q3: Does net metering require batteries?
👉 No. The grid acts as a virtual battery.
Q4: How long does net metering approval take?
👉 Usually 1–3 months depending on the DISCOM.
Q5: Can I earn money with net metering?
👉 Mostly, you get credits, not cash. Only some states allow monetary settlement.
Q6: Is net metering free?
👉 You may have to pay for the bi-directional meter (~₹10,000–₹15,000).
Q7: Can I install solar without net metering?
👉 Yes, but then extra power is wasted unless you use batteries.
🔹 Conclusion
Net metering is the backbone of solar adoption in India. It allows households and businesses to:
- Reduce electricity bills
- Use the grid as a virtual battery
- Support clean energy adoption
In 2025, with government subsidies + net metering policies, solar has become more affordable than ever.
👉 If you’re planning to install solar, always check your state’s DISCOM policy and apply for net metering at the time of installation.
With the right setup, you can enjoy zero electricity bills for the next 25 years! 🌞
