Understanding Net Metering in India

Net metering is the mechanism that allows you to send excess solar power back to the grid and receive credit on your electricity bill. It is the single most important policy factor affecting your solar ROI.

How Net Metering Works

When your solar panels generate more electricity than you consume, the surplus flows into the grid. Your electricity meter runs backwards. At the end of the billing cycle, you pay only for the net consumption.

State Variations

Every state has different rules regarding system size caps, banking periods, and compensation rates. Some states offer 1:1 credit, meaning every unit you export is worth the same as every unit you import. Others offer lower rates for exported power.

Key Considerations

• Check your DISCOM’s net metering policy before finalizing system size
• Some states cap net metering at 10 kW for residential
• Banking period varies from monthly to annually
• Excess generation beyond consumption may be compensated at a lower rate

Not Sure About Your State?

Talk to our expert for Rs. 2,000 and get clarity on your state’s net metering rules and how they affect your solar investment.