Net Metering for Rooftop Solar in India: How It Works and How to Apply

Net metering is a billing arrangement where your DISCOM installs a bi-directional meter that tracks electricity flowing both ways — from the grid to your home, and from your rooftop solar system to the grid. You pay only for the net consumption (import minus export). Surplus credits carry forward monthly and settle annually. It is available in all Indian states for on-grid residential systems and is the primary mechanism that makes rooftop solar financially viable.

Understanding the flow of electricity and credits is straightforward:

1. Daytime generation: Your solar panels produce electricity. Your home consumes what it needs first — lights, fans, fridge, AC, etc.
2. Surplus export: Any electricity your home does not consume instantly flows out through the bi-directional meter to the DISCOM grid.
3. Nighttime import: After sunset, your panels stop generating. You draw power from the grid as usual, and the meter records this import.
4. Monthly netting: At the end of each billing cycle, your DISCOM calculates: units imported − units exported = net consumption.
5. Credit carry-forward: If you exported more than you imported in a given month, the surplus carries forward as credit to the next billing cycle.
6. Annual settlement: At the end of the settlement period (typically 12 months), any remaining credit is settled per your state's policy — either paid out at a predetermined rate or lapsed.

The entire process is automatic. Your bi-directional meter handles the tracking. You simply read your bill to see the net consumption.

Net metering eligibility is straightforward for most Indian homeowners:

• System type: Must be an on-grid (grid-connected) solar system. Off-grid systems with no grid connection cannot use net metering.
• System size limit: Most states allow net metering for systems up to the sanctioned load of your electricity connection (typically up to 10kW for residential). Some states cap at a percentage of sanctioned load (e.g., 100% in Maharashtra, 80% in some others).
• Installer requirement: System must be installed by an MNRE-empanelled or DISCOM-approved vendor for the net meter application to be accepted.
• Roof ownership: You must own the roof or have documented permission from the building owner/housing society.
• Existing connection: You need an active electricity connection with the local DISCOM in your name.

For apartments, the housing society must pass a resolution approving the installation. Individual flat owners can apply for net metering on their share of the rooftop system.

Your solar installer handles most of the paperwork. Here is the typical process:

1. Apply to DISCOM (Day 1): Submit an online or offline application to your DISCOM with system design, installer details, and roof ownership proof. Many DISCOMs now have online portals (e.g., MSEDCL's solar rooftop portal for Maharashtra).
2. Technical feasibility check (7–15 days): DISCOM verifies your distribution transformer has capacity for additional solar injection. Rarely rejected for residential systems.
3. Approval and installation (15–30 days): Once approved, your installer completes the system installation and wiring to the grid interconnection point.
4. Meter installation (7–15 days post-installation): DISCOM replaces your existing meter with a bi-directional (import/export) meter. Some DISCOMs provide the meter; others require you to purchase an approved model.
5. Commissioning and inspection (1–7 days): DISCOM inspects the installation, verifies safety compliance, and commissions the net meter.
6. Start generating (from commissioning date): Your system is live. Exported units start earning credits from day one.

Total timeline: 30–60 days from application to commissioning in most states. Some DISCOMs (BESCOM, MSEDCL) are faster; others take longer.

Detailed DISCOM application guide →

Smart usage patterns can significantly increase your net metering savings:

• Shift heavy loads to daytime: Run washing machines, water heaters, and dishwashers during peak solar hours (10am–3pm) to consume your own generation directly instead of importing at night.
• Right-size your system: A system that generates 100–120% of your annual consumption maximises net metering without excessive uncompensated export. Use our solar calculator to find the right size.
• Monitor generation regularly: Use your inverter's monitoring app to spot output drops early. A 20% drop in generation means 20% fewer credits.
• Understand your settlement period: Know when your DISCOM settles credits. Plan large electricity usage (e.g., summer AC) within the settlement window to use your credit bank.

Net metering is the backbone of residential solar economics in India. With the right system size and an on-grid setup, your DISCOM effectively becomes a free battery — storing your surplus during the day and returning it at night.

Solar Vipani connects you with verified installers who handle the entire net metering application process as part of your installation. Fill one form, get 2–3 quotes.

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