Net Metering for Solar in India 2026: How It Works & State Rules

Net metering lets you export surplus solar electricity to the grid and receive credits on your electricity bill. Your DISCOM installs a bi-directional meter that tracks power flowing both ways. At billing time, you pay only for the net consumption (units imported minus units exported). Most Indian states settle credits annually, meaning summer surplus offsets monsoon shortfall.

The mechanism is straightforward:

1. Daytime generation: Your solar panels produce electricity. Your home consumes what it needs instantly
2. Surplus export: Any electricity your home doesn't consume flows to the grid through the bi-directional meter
3. Nighttime import: After sunset, you draw power from the grid as usual
4. Bi-directional metering: The meter records both import and export separately
5. Billing: Your DISCOM calculates net consumption = units imported − units exported. You pay only for the net
6. Credit carry-forward: If you exported more than imported in a billing cycle, the surplus carries forward as credit to the next cycle

The grid essentially acts as a free battery — storing your daytime surplus and returning it at night. This is why on-grid systems are the most cost-effective choice for most Indian homeowners.

Net metering setup is part of the solar subsidy application process. Your installer handles most of it:

1. Application: Vendor submits net metering application to your DISCOM (done during subsidy process)
2. Technical feasibility: DISCOM checks transformer capacity and feeder load (7–15 days)
3. Meter procurement: DISCOM procures or you purchase a bi-directional meter (per DISCOM policy)
4. Meter installation: DISCOM replaces your existing meter with the bi-directional meter (15–30 days)
5. Testing: System is tested for proper grid synchronisation and safety
6. Commissioning: DISCOM issues commissioning certificate, net metering goes live

Cost for the bi-directional meter varies: some DISCOMs provide it free, others charge ₹2,000–₹5,000. Your installer can clarify the local policy.

These strategies help you get the most from net metering:

1. Right-size your system: Match system capacity to your annual consumption. Over-sizing means exporting surplus at low buy-back rates
2. Shift heavy loads to daytime: Run washing machines, water heaters, and dishwashers during peak solar hours (10 AM – 3 PM) to maximise self-consumption
3. Annual settlement states are better: If your state offers annual settlement, seasonal variation balances out naturally
4. Monitor your meter: Track import/export readings monthly to understand your consumption pattern and adjust if needed
5. Avoid system oversizing: A system generating more than 110% of your annual consumption wastes money on low buy-back rates

The optimal system size typically matches 80–100% of your annual electricity consumption.

→ System sizing and cost guide

Addressing the practical concerns homeowners raise most often:

• What happens during power cuts? — On-grid inverters shut down during grid outages for safety (anti-islanding). You will not have solar power during a grid outage unless you have a hybrid system with battery
• Will my meter run backwards? — Old-style electromechanical meters could literally spin backwards. Modern bi-directional digital meters record import and export separately. Both values are printed on your bill
• Do I still pay any fixed charges? — Yes. Net metering offsets energy charges only. Fixed charges, demand charges, and regulatory surcharges still apply as per your DISCOM tariff

Net metering is included in every rooftop solar installation from our verified installers. They handle the complete DISCOM process — application, meter coordination, and commissioning.

Get free solar quotes with net metering included →