Is net metering free in India?

The net-metering arrangement itself is free, but you pay for the bidirectional (net) meter, which is usually a small one-time cost added by the DISCOM. Application and feasibility approval are typically free. Confirm the exact meter charge with your DISCOM (indicative 2026 — verify current).

How long does DISCOM net-metering approval take?

Typically 15–45 days end to end, covering online application, feasibility approval, installation, inspection and net-meter commissioning (indicative 2026 — verify current). Delays usually stem from incomplete documents or transformer-capacity checks, so keep your bill, ID and roof details ready and use an empanelled installer.

What is the maximum system size for net metering at home?

Net metering is deemed feasible up to 10 kW for residential consumers under the Electricity (Rights of Consumers) Rules, 2020 (indicative 2026 — verify current). This covers nearly every home. Above 10 kW, states may require net billing or a feasibility study.

What happens to surplus solar units I don't use?

Unused surplus rolls over month to month as credits at full value. At the annual settlement (often financial year-end), leftover banked units are cashed out at a low state-set rate or, in some states, lapse. So size your system to consumption rather than oversizing to farm credits.

Is net metering the same as net billing?

No. Net metering values your exported units at the retail tariff you pay, making it best for homes. Net billing often values exports at a lower rate than retail. Several states push systems above a certain size onto net billing, so confirm your state's current rules.

Do I need net metering to get the PM Surya Ghar subsidy?

Yes — only on-grid (grid-connected) systems with net metering qualify for the subsidy, and panels must be ALMM-listed with DCR cells (indicative 2026 — verify current). Note PM Surya Ghar closed new registrations on 6 June 2026; verify current scheme status.

Net Metering in India: The Complete 2026 Guide

You install rooftop solar, but your panels produce most of their power at midday when nobody’s home, and you draw the most power at night when the sun’s gone. Net metering is the elegant fix: the grid becomes your battery. It’s the single biggest reason a grid-connected home solar system pays for itself in India.

What Is Net Metering, In Plain English?

Net metering is a billing arrangement with your electricity distribution company (DISCOM). A special bidirectional (net) meter replaces your old one and counts electricity flowing both ways:

Import — units you pull from the grid (mornings, nights, cloudy days).
Export — surplus solar units your system pushes back to the grid when you’re generating more than you use.

At billing time, the DISCOM subtracts your export from your import. You pay only for the net units consumed. Export more than you import in a month, and the extra units are banked as credits.

Think of it as a savings account for electricity. Deposit surplus units by day; withdraw them at night at the same value.

How Import, Export and Net Billing Actually Work

Say your 3 kW system generates 12 units on a sunny day (roughly 4 units/day per kW is a fair rule of thumb — indicative, verify for your city). During the day you use 4 units directly and export 8. That night you import 6 units. Your net position for the day: exported 8, imported 6, so 2 units credited.

The meter tracks this continuously. Your monthly bill shows total import, total export, and the net figure you’re charged for (plus fixed charges, which you still pay regardless).

Net Metering vs Gross Metering vs Net Billing

These three are constantly confused. Here’s the honest difference:

Feature	Net Metering	Gross Metering	Net Billing
What you self-consume	Used first, free	Nothing — all exported	Used first
Export valued at	Retail tariff (₹/unit you pay)	A fixed feed-in tariff	Often lower than retail
Best for	Homes (highest savings)	Investors selling all power	Larger systems in some states
Meter	Bidirectional	Separate export meter	Bidirectional

For a typical home, net metering is the most valuable because your exported units are worth the same as the units you’d otherwise buy. Gross metering pays you a set rate for everything you generate but you buy back all you consume at retail — usually worse for self-consumers. Net billing sits in between and is increasingly used for bigger systems.

The ≤10 kW Home Rule

Under the Electricity (Rights of Consumers) Rules, 2020, net metering is deemed feasible up to 10 kW for residential consumers (indicative 2026 — verify current with your DISCOM). In practice this covers almost every Indian home; a 10 kW rooftop is large. Above 10 kW, states may require net billing or a feasibility study, and sanctioned-load and transformer-capacity limits can apply. For the PM Surya Ghar subsidy, only on-grid systems with net metering qualify, and only ALMM-listed panels with DCR cells are eligible (indicative 2026 — verify current).

The DISCOM Application Process and Timeline

The paperwork is more routine than people fear. A good installer handles most of it. Typical steps:

Apply online to your DISCOM with your consumer number, sanctioned load, and system details.
Feasibility approval — the DISCOM checks your transformer and load can absorb export.
Install the system using an empanelled vendor (get 3 free quotes before you pick one — prices and workmanship vary widely).
Inspection by DISCOM engineers.
Net meter installation and commissioning.

Approval typically takes 15–45 days end to end (indicative 2026 — verify current), depending on state and workload. Delays usually come from incomplete documents or transformer-capacity checks, so keep your electricity bill, ID, and roof details ready.

Settlement: Monthly Carry-Forward Plus Annual

Most Indian DISCOMs run a two-layer settlement (details vary by state — verify locally):

Monthly carry-forward — surplus units you don’t use this month roll over as credits to next month. Great for balancing a low-generation monsoon against sunny March.
Annual settlement — at the end of the settlement year (often March/financial year), any leftover banked units are cashed out, usually at a modest rate set by the state regulator (typically well below retail), or in some states simply lapse.

The practical lesson: size your system to your consumption, not oversized. Units you export and never consume are settled cheaply or lost. The system-size calculator matches system size to your annual bill and is worth using before you sign anything.

What Happens to Your Surplus?

Within the month, surplus offsets your import — full value.
Rolled to next month, still full value against future consumption.
Left over at year-end, paid out at the state’s surplus rate (low) or lapsed.

So the goal is to consume your own generation across the year, not to farm credits.

State Variations You Should Know

Electricity is a state subject, so rules differ:

Settlement rate and lapse policy vary — some states pay for annual surplus, some don’t.
Capacity limits — some states cap net metering below 10 kW or tie it to sanctioned load.
Net billing thresholds — several states push systems above a certain size onto net billing.
Banking charges — a few states levy a small charge on banked units.

Always confirm the current order from your State Electricity Regulatory Commission or DISCOM. What’s true in Maharashtra may not hold in Tamil Nadu.

A Worked Monthly Example

Take a home in Jaipur with a 3 kW system on a ₹3,000/month bill:

Item	Figure (indicative)
Monthly generation	~360 units (3 kW × 4 units/day × 30)
Self-consumed by day	~120 units
Exported to grid	~240 units
Imported at night	~200 units
Net billed units	Net export ~40 units → credited
System cost before subsidy	₹1.65–2.25 lakh (₹55,000–75,000/kW)
PM Surya Ghar subsidy (3 kW, capped)	Up to ₹78,000

With net metering, that household’s grid bill collapses to fixed charges plus a token amount, and surplus banks for cloudy days. On subsidised cost, payback lands around 3–4 years (indicative 2026 — verify current), with panels warranted for ~25 years of performance. Note the PM Surya Ghar scheme closed new registrations on 6 June 2026 (verify current status).

Why Net Metering Makes Solar Worth It

Without net metering you’d need an expensive battery to store daytime surplus for night use. Net metering gives you that storage for free — the grid holds your units and returns them at full value. That single mechanism is what turns a ₹3,000 monthly bill into near-zero and delivers the 3–4 year payback. It’s the difference between solar as a novelty and solar as the best financial decision on your roof.

Before you commit, get 3 free quotes, confirm your DISCOM’s current net-metering order, and run your numbers through the savings calculator sized to your actual bill — not a salesman’s optimistic estimate.