Net metering is an electricity billing mechanism that allows solar energy users to send excess power generated by their rooftop solar panels back to the utility grid and receive energy credits in return. These credits offset the electricity consumed from the grid, effectively lowering the user’s monthly bill.
In simple terms, when your solar system produces more electricity than your home or business uses, the bidirectional meter tracks the exported energy. During times when solar generation is low (like at night), you can draw power from the grid, using previously earned credits.
This system supports a solar billing model where you pay only for the “net” energy consumed (imported minus exported). Widely adopted across India, net metering solar policies make renewable energy more affordable and practical for both residential and commercial users. Net metering meaning is also tied to the concept of decentralized energy production, helping India move toward energy independence by turning consumers into prosumers (producers + consumers).
How Does Net Metering Work in India?
Net metering in India operates under a simple principle: the electricity your solar system generates is first used by your home or business, and any excess is fed into the solar grid. This exported power earns you energy credits, which reduce your utility bill by offsetting the amount of electricity you import from the grid later.
This system uses a bi-directional meter that tracks both the energy you consume from the utility and the energy you supply to it. You are billed only for the net electricity consumption i.e., the difference between energy imported and exported over a billing cycle.
The Role of a Net Meter
At the center of this system is the net meter, a digital energy meter approved by your local DISCOM (Distribution Company). Unlike traditional meters, it records two values:
- Energy imported from the grid
- Energy exported to the grid
The net import/export reading allows the utility to calculate the net usage at the end of the billing cycle. For example, if you exported 120 kWh and imported 150 kWh in a month, you will only be billed for 30 kWh.
Modern net meters also function as solar power monitoring devices, helping you track performance, spot anomalies, and ensure transparency in billing.
Benefits of Net Metering for Solar Users
Net metering offers significant benefits for solar users, making solar power more affordable and efficient. One of the primary advantages of net metering is the ability to reduce your electricity bill by earning credits for surplus energy your solar panels generate. These credits offset the cost of electricity drawn from the grid when your system isn’t producing enough power, such as at night or during cloudy days.
By leveraging net metering, solar users enjoy a faster return on investment on their solar panel systems. Instead of losing excess energy, you become a prosumer both a producer and consumer of energy participating actively in energy generation and consumption. This creates a more smart energy system that maximizes the value of your solar installation.
Additionally, net metering supports clean energy adoption by encouraging the use of renewable power and reducing dependence on fossil fuels. It aligns with India’s sustainability goals and helps homeowners and businesses contribute to a greener environment while enjoying financial savings.
Net Metering vs Net Billing vs Gross Metering
Understanding the differences between net metering, net billing, and gross metering is crucial for solar users to choose the best energy compensation model for their needs.
Net Metering
In net metering, the electricity you generate and export to the grid is measured by a bidirectional net meter. You receive credits equal to the energy units sent back, which directly offset your consumption from the grid. This solar export billing method allows you to pay only for the net electricity consumed (import minus export). Net metering promotes self-consumption and is widely adopted for residential and small commercial solar systems. Net metering applies only to on-grid solar systems. If you’re unsure whether to go on-grid or off-grid solar system, check out this comparison of on-grid vs off-grid solar systems to understand what suits your needs.
Net Billing
Net billing differs by providing monetary credits instead of energy credits. The energy you export is sold to the utility at a predetermined feed-in tariff rate, which may be lower than the retail electricity price. When you consume electricity from the grid, you pay the retail rate. The billing happens separately for import and export, making it a more complex grid settlement process compared to net metering.
Gross Metering
With gross metering, all the electricity generated by your solar system is fed into the grid and measured separately by a gross meter. You sell the entire generated electricity to the utility at a fixed tariff. You then buy your electricity needs from the grid at the retail rate. This model is typically used for large-scale solar power plants rather than rooftop installations.
| Feature | Net Metering | Net Billing | Gross Metering |
| Credit Type | Energy credits (kWh) | Monetary credits (₹) | Fixed feed-in tariff |
| Meter Type | Bidirectional net meter | Separate import and export meters | Separate generation meter |
| Billing | Net consumption billed | Import and export billed separately | Generation sold fully to grid |
| Best Use Case | Residential & small commercial | Commercial & industrial | Utility-scale solar projects |
By understanding these models, solar users can better assess their billing and compensation, optimizing their solar investment. APN Solar advises customers on selecting the right model based on local policies and system size.
How to Apply for Net Metering in India
Applying for net metering in India involves following specific DISCOM procedures and submitting the necessary paperwork to connect your rooftop solar system to the grid. The process ensures your system is compliant, safe, and eligible for energy credits under government policies. Understanding the net metering application steps and required documentation can simplify your solar journey.
Step-by-Step Application Process
- Contact Your DISCOM or Solar Provider
Start by reaching out to your local electricity distribution company (DISCOM) or a trusted solar EPC partner like APN Solar, who can guide you through the process. - Submit Application Form
Fill out the solar meter application form provided by your DISCOM. This typically includes details about your solar system capacity and installation plan. - Provide Required Documentation
Attach the necessary documents (see below) along with your application. - Site Inspection
After receiving your application, the DISCOM schedules a solar site inspection to verify system safety, installation quality, and compliance with technical standards. - Net Meter Installation
Once approved, a DISCOM-approved net meter is installed at your premises to track both exported and imported electricity. - Final Approval and Connection
After installation and testing, you receive formal approval to start exporting solar power and earning credits.
Typical approval timelines vary by state but usually range from 15 to 45 days. APN Solar offers expert assistance throughout this process to ensure timely and hassle-free net metering setup.
Required Documents
To complete your net metering application, prepare the following:
- Latest Electricity Bill: Confirms your current electricity connection and billing details.
- Government-Issued ID (KYC): Proof of identity of the system owner.
- Ownership Proof: Documents showing ownership or tenancy of the premises.
- System Layout or Single Line Diagram: Technical schematic of your rooftop solar system, including panel and inverter specifications.
- Inverter Capacity Details: Confirms the rated capacity and compliance with grid standards.
- Net Meter Specifications: Information about the type of meter to be installed, usually provided by DISCOM or your solar provider.
Having these documents ready accelerates your net meter installation process and avoids unnecessary delays. Before applying, make sure your rooftop solar system is installed as per DISCOM guidelines. You can follow this step-by-step solar panel installation guide for residential homes in India.
State-Wise Net Metering Guidelines
Net metering policies in India vary by state, governed by local DISCOM regulations and state solar policies. Understanding net metering eligibility and application procedures specific to your region helps ensure a smooth connection process and faster approvals. Here’s an overview of net metering guidelines for some key states:
Uttar Pradesh (UPNEDA)
The Uttar Pradesh New and Renewable Energy Development Agency (UPNEDA) oversees rooftop solar net metering applications in the state. Solar users in UP can apply through the UPNEDA portal or directly via their local DISCOM.
Key points include:
- Residential solar systems under 5 kW are eligible for net metering.
- Applications require submission of the UP net metering form along with mandatory documents like electricity bills and ownership proof.
- The approval and meter installation process typically takes 30–45 days.
- UPNEDA regularly updates rooftop solar guidelines in UP to align with central government policies.
Maharashtra (MSEDCL)
In Maharashtra, the Maharashtra State Electricity Distribution Company Limited (MSEDCL) manages net metering policies.
Highlights include:
- MSEDCL permits rooftop solar systems up to 1 MW for net metering under state and central subsidy schemes.
- The MSEDCL net meter application can be submitted online via their portal or through authorized solar partners.
- The state follows strict Maharashtra net meter rules, including mandatory load matching and inverter certifications.
- Installation fees and meter costs are regulated by MSEDCL’s tariff order.
Tamil Nadu (TNEB)
The Tamil Nadu Electricity Board (TNEB) administers net metering for rooftop solar users in Tamil Nadu.
Key details:
- The TNEB net meter application process is available through the official TNEB online portal.
- Tamil Nadu supports both residential and commercial solar installations with net metering under its rooftop solar policy.
- Applicants must submit technical details, including system capacity and a net meter connection diagram.
- TNEB oversees the installation of approved bidirectional meters and final system inspection.
This state-wise guidance ensures that you meet all regional requirements for successful net metering. Always check the latest policies on your local DISCOM’s website. If your state is not listed here or you need personalized support, please contact us for assistance.
Net Metering Price and Installation Cost
Understanding the net meter price and installation costs is essential for budgeting your rooftop solar project. The cost varies based on the type of net meter, your system size, and regional DISCOM charges.
Typical Net Meter Prices in India
| Meter Type | Estimated Price Range (₹) |
| Single-phase Net Meter | 2,000 – 3,500 |
| Three-phase Net Meter | 4,000 – 6,000 |
| Meter Installation Charges | 1,000 – 2,000 |
| Total Net Meter Setup Cost | 3,000 – 8,000 |
Additional Installation Costs
- Solar Setup Cost: Includes the cost of the solar panels, inverter, wiring, and mounting structure, varying widely based on capacity.
- Net Meter Charges: Some DISCOMs charge a separate fee for net meter installation and maintenance, which may be included in your monthly bill or as a one-time payment.
How Much Does Net Metering Cost?
The solar net meter price is just one component of the overall solar installation expense. A typical residential rooftop solar system’s cost ranges from ₹40,000 to ₹70,000 per kW before subsidies. Adding net metering increases initial costs slightly but results in significant long-term savings by reducing electricity bills.
Being informed about net metering solar prices and fees helps you make better decisions. Always confirm the meter cost with your local DISCOM or solar provider to avoid surprises.
Solar Net Meter Connection Explained
The solar net meter connection is a crucial part of a rooftop solar system that enables accurate tracking of energy exported to and imported from the grid. Understanding how this connection works helps users appreciate the technical flow and ensures their system operates efficiently and compliantly with DISCOM regulations.
A solar meter connection involves integrating your solar panels, inverter, and home electrical system with the utility grid through a bidirectional net meter. This meter records electricity flow in both directions the power your solar system sends to the grid and the electricity you draw when needed.
Since net metering only works with grid-tied systems, it’s important to understand how an on-grid solar system functions before proceeding with installation.
How the System is Wired
The wiring setup begins with the solar panels generating DC electricity, which passes through the inverter to convert DC to AC compatible with your home and the grid. From the inverter, power flows to your home distribution panel, supplying your household loads first.
The excess electricity, if any, is directed through the net meter and fed back to the grid interface. The net meter accurately records both energy export and import, ensuring precise billing.
This connection is usually represented in a Single Line Diagram (SLD) that shows the complete wiring path from solar panels through the inverter, net meter, distribution board, and finally to the utility grid.
Solar Net Meter Connection Diagram (Explained)
The above solar net meter connection diagram visually represents how a typical rooftop solar system is wired to the utility grid. It demonstrates the complete energy export-import wiring setup:
- Solar panels generate DC power, which flows into the inverter.
- The inverter converts DC to AC, making the electricity usable for home consumption.
- AC output is directed to the household distribution panel, powering appliances directly.
- Surplus energy flows to the net meter, a bidirectional device that records both incoming (grid import) and outgoing (solar export) electricity.
- Any excess electricity is then fed into the utility grid, earning solar energy credits under the net metering policy.
This simplified layout acts as a quick-reference connection infographic for installers, technicians, and homeowners to ensure accurate installation and compliance with DISCOM guidelines.
How to Read Your Solar Meter
Understanding how to read your solar power meter is essential for tracking solar generation, monitoring energy use, and ensuring accurate net billing. Most modern digital solar meters installed under net metering schemes in India display a range of values that show both imported and exported energy.
With proper solar meter reading, you can evaluate how much electricity your solar system contributes to the grid and how much power you’re drawing from it helping you make better decisions to save on energy costs.
Meter Display Parameters
Net meters typically scroll through multiple display values in a digital format. Here’s how to interpret the most common parameters:
- kWh Reading – The total units (kilowatt-hours) of energy measured.
- Import Reading – Shows the energy you’ve drawn from the grid.
- Export Reading – Displays the energy you’ve sent back to the grid.
- Net Usage Display – Some meters directly show the difference between imported and exported energy (net units).
- Import/Export Log – Advanced meters store daily or monthly logs for precise tracking.
The net value (Import – Export) is used by DISCOMs for net metering billing, which determines your electricity bill.
Tips to Monitor Usage
To get the most out of your energy monitoring setup, follow these tips:
- Take Monthly Manual Readings: Record import and export readings at the start and end of each billing cycle for reference.
- Use Solar Tracking Apps: Many inverters and meters support Bluetooth or Wi-Fi-based apps to monitor generation and consumption in real time.
- Keep a Logbook: Maintaining a simple monthly meter log helps analyze usage patterns and detect system performance drops.
- Review Net Billing Statements: Match your readings with DISCOM bills for transparency and ensure you’re receiving accurate credits.
- Inspect Net Meter Display: Get familiar with the scroll sequence or display button to toggle between different readings.
By regularly monitoring your solar meter, you ensure optimal performance, identify issues early, and make the most of your solar energy savings.
Is Net Metering Right for You?
Many homeowners and business owners wonder: “Is net metering good for my solar setup?” The answer depends on several factors, including your electricity consumption pattern, solar system size, and the local DISCOM policies. If you consume electricity during the day and have a roof suitable for solar installation, net metering can significantly lower your monthly energy bills and accelerate your return on investment.
You should consider net metering if you’re installing a subsidy-linked rooftop solar system or want to reduce grid dependence while earning credits for excess energy. The benefits also depend on the types of solar panels available in India, so choose wisely before deciding.
Checklist Before Applying
Use this quick checklist to evaluate your solar eligibility before applying for net metering:
- Roof Size & Orientation: Sufficient shade-free space for optimal panel placement.
- Sanctioned Load: Your existing electricity connection should match your solar inverter’s capacity.
- DISCOM Support: Your state DISCOM must support net metering under its current solar policy.
- Subsidy Availability: You may be eligible for central or state government subsidies if you opt for a registered vendor.
- System Size vs. Load: Ensure your solar system size is aligned with your average monthly energy consumption.
Also, consider technical elements like grid access, system layout, and site suitability to ensure approval. Your system layout and panel type (such as monocrystalline or polycrystalline) can influence efficiency and sizing. Read this guide on monocrystalline vs polycrystalline solar panels to compare and make the best choice.
Homeowners installing rooftop solar under net metering may also be eligible for financial assistance. Explore the latest solar subsidy options under PM Surya Ghar Yojana to reduce upfront costs.
Who Benefits the Most?
Net metering is ideal for:
- Households with moderate to high daytime energy use (e.g., ACs, washing machines, and kitchen appliances).
- Small offices and shops operating during sunlight hours, where solar power can directly offset energy bills.
- Commercial units with consistent 9-to-5 loads, maximizing solar utilization and grid export potential.
- Solar users with daytime load, such as schools, clinics, and workshops.
If your usage pattern aligns with solar generation hours, net metering helps you turn surplus electricity into energy credits, making it one of the most effective billing models for urban and semi-urban solar adopters.
Why Choose APN Solar for Net Metering Services?
When it comes to navigating the complex landscape of net metering in India, choosing the right partner makes all the difference. As a trusted solar installation expert, APN Solar has built a reputation as one of the best solar company in India, offering end-to-end support for residential, commercial, and institutional solar projects.
From system design to documentation and approvals, our team ensures you meet all technical, safety, and DISCOM compliance standards making your solar EPC journey in India smooth and hassle-free.
Here’s what sets APN Solar apart:
- Net Metering Consultation: We help you determine eligibility and guide you through state-specific net metering processes.
- Subsidy Assistance: Get help with applying for central and state government subsidies, maximizing your investment.
- DISCOM & Policy Support: We liaise with your local DISCOM to streamline approvals, inspections, and meter installations.
- Certified EPC Execution: From rooftop assessments to final grid connection, our engineers ensure full regulatory compliance.
- After-Sales Support: Our ongoing monitoring and maintenance services ensure your system delivers consistent performance.
In addition to solar installation, APN Solar also offers solar business franchise opportunities for entrepreneurs looking to enter India’s rapidly growing clean energy market. Our franchise partners benefit from strong brand credibility, expert training, technical support, marketing assistance, and access to quality solar equipment. If you’re passionate about renewable energy and want to start a sustainable business, becoming an APN Solar franchise partner could be your ideal next step. As your long-term rooftop solar partner, we simplifies every step of your net metering journey so you can focus on saving energy and building a greener future.
Fill out the form below to get personalized assistance or learn more about net metering, installation services, or solar business franchise opportunities.
Frequently Asked Questions
1. What is net metering and how does it work in India?
Net metering is a billing system where the solar energy you generate and send to the grid is credited against the electricity you consume from it. In India, DISCOMs use a bi-directional meter to track import and export, and you are billed only for the net units used.
2. Is net metering allowed in all states of India?
Yes, net metering is allowed in most Indian states, but the rules and eligibility vary. Each state’s DISCOM has its own application process, sanctioned load limits, and policies. Check with your state’s solar or electricity board before applying.
3. What are the disadvantages of net metering for solar users?
While net metering offers savings, its disadvantages include dependency on DISCOM approvals, possible delays in meter installation, limited capacity thresholds, and lower export compensation in some states under net billing models.
4. What is the minimum solar system size required for net metering in India?
The minimum system size for net metering typically starts at 1 kW for residential consumers. However, eligibility may vary depending on your sanctioned load and the policy set by your state’s DISCOM.
5. How is net metering billing calculated?
Net metering billing is calculated as:
Net units = Imported units – Exported units.
If your exported energy exceeds consumption, the surplus is carried forward as energy credits. If you import more, you pay only for the difference.
6. Can I use solar panels without opting for net metering?
Yes, you can install solar panels without net metering by setting up an off-grid system with batteries or using a grid-tied system without export. However, without net metering, you won’t receive credit for excess power sent to the grid.
7. How to apply for net metering in India?
To apply for net metering, contact your local DISCOM or solar EPC provider. You’ll need to fill out an application, submit documents like your electricity bill, system layout, and identity proof, followed by a site inspection and meter installation.
