Key takeaways
- Net metering lets your rooftop send surplus units to the grid and take them back later, unit for unit. You pay only for the difference, plus fixed charges.
- Surplus units sit in a bank that most states settle once a year, usually in March. Whatever is left is paid out at a low rate, ₹2.82 a unit in Maharashtra for 2026–27.
- Because the year usually runs April to March, winter surplus cannot cover next summer’s AC bill. Size your system to the units you use in a year, not to the roof.
- A net meter costs about ₹3,000 to ₹8,000 depending on the DISCOM. Systems up to 10 kW need no technical feasibility study.
Net metering is the billing arrangement that lets a home with rooftop solar export surplus power to the grid and use that credit against the power it draws later. A two-way net meter replaces your old meter and records both flows. At billing time the DISCOM charges you for imports minus exports. For the short definition, see what is net metering. This guide covers what the glossary does not: a full year of real numbers, how the year-end settlement can quietly cost you, what the meter costs and how to get one.
How net metering works on your bill
In daytime your home uses solar first. When the panels make more than the house needs, the extra flows out through the net meter and is counted as export. At night, or on cloudy days, you import from the grid as before. Each month the DISCOM sets exports against imports. If you exported more, the extra units go into a bank and carry forward to later months.
Two things never go away: the fixed or demand charge on your connection, and in most states electricity duty on billed units. That is why a net-metered bill is rarely ₹0 even in a month you exported more than you used.
A full year of net metering on one roof
Most guides show a single month. One month hides the part that matters, so here is a whole year for a 3 kW system on a Maharashtra home that uses 3,860 units a year, with the April to March settlement year most states follow.
| Month | Solar units made | Units used at home | Units in the bank | Units billed |
|---|---|---|---|---|
| Apr | 408 | 420 | 0 | 12 |
| May | 393 | 450 | 0 | 57 |
| Jun | 276 | 380 | 0 | 104 |
| Jul | 222 | 300 | 0 | 78 |
| Aug | 249 | 290 | 0 | 41 |
| Sep | 279 | 300 | 0 | 21 |
| Oct | 375 | 330 | 45 | 0 |
| Nov | 399 | 280 | 164 | 0 |
| Dec | 429 | 260 | 333 | 0 |
| Jan | 453 | 260 | 526 | 0 |
| Feb | 423 | 260 | 689 | 0 |
| Mar | 447 | 330 | 806 | 0 |
| Year | 4,353 | 3,860 | 806 | 313 |
Over the year the panels made 493 more units than the home used, yet the family still paid for 313 units. The reason is timing. The bank starts empty in April, exactly when AC use peaks and the monsoon cuts output. By the time solar runs ahead in October, the expensive months are over. The 806 units banked through winter are then settled in March at the surplus rate instead of covering next May.
At an assumed ₹8 per unit, that is about ₹2,500 paid for the 313 units, while the 806 surplus units earn about ₹2,270 at ₹2.82. The same 806 units used at home would have been worth about ₹6,450.
Why a bigger system can be a worse deal
Run the same home with a 5 kW system and the bill for units drops to zero, but the bank ends March with 3,395 surplus units. Paid at ₹2.82, they bring in about ₹9,600. The extra 2 kW costs roughly ₹1 lakh more and gets no extra PM Surya Ghar subsidy, which stops at 3 kW. It saves about ₹2,500 on the bill and earns about ₹7,300 for the surplus, so the extra capacity takes 10 years or more to pay back, against about five for the first 3 kW.
Net metering vs net billing vs gross metering
Not every state values your exports the same way, and some are moving larger home systems from net metering to net billing. The same home and the same month give very different bills under the three models.
| Same month, same home | Net metering | Net billing | Gross metering |
|---|---|---|---|
| How exports are valued | Unit for unit against imports | ₹2.82 per unit | All solar sold at ₹2.82 |
| Imports paid at | ₹8 per unit, on the net only | ₹8 per unit, all of them | ₹8 per unit, all 300 |
| Energy bill | ₹0, plus 60 units banked | ₹1,440 − ₹677 = ₹763 | ₹2,400 − ₹1,015 = ₹1,385 |
| Saving vs no solar | ₹2,400 | ₹1,637 | ₹1,015 |
Under net metering, every exported unit is worth a full grid unit, so it does not matter when in the day you use power. Under net billing, power you use while the sun is up is worth almost three times what you get for exporting it, so running the washing machine, pump and geyser at midday pays. Gross metering sells everything to the DISCOM and is rarely offered to homes now. Check which model applies on your state page before you size the system.
What a net meter costs
| DISCOM area | Application fee | Net meter |
|---|---|---|
| Gujarat (DGVCL, MGVCL, UGVCL, PGVCL) | Nil | ₹3,000–4,500 |
| Maharashtra (MSEDCL) | ₹500–1,000 | ₹4,000–5,500 |
| Karnataka (BESCOM) | ₹500 | ₹4,000–5,000 |
| Delhi (BSES, TPDDL) | ₹1,000 | ₹4,500–6,000 |
| Rajasthan (JVVNL) | ₹1,000–2,000 | ₹4,000–6,000 |
| Uttar Pradesh (PVVNL) | ₹1,500–3,000 | ₹4,500–6,500 |
| Tamil Nadu | ₹2,500–5,000 | ₹5,000–8,000 |
Under PM Surya Ghar the DISCOM installs the net meter after inspecting your system. In some areas the vendor’s package includes the meter and fees; in others you pay the DISCOM directly. Ask your vendor to write on the quote which of the two applies, so the meter is not a surprise bill at the end.
How to apply for net metering
- Check your sanctioned load. Many DISCOMs cap the system at your sanctioned load. If you want more, apply for a load increase first, which also raises your fixed charge. Larger systems, often above 5 kW, may need a three-phase connection.
- Apply. Under PM Surya Ghar the application starts on the national portal and the vendor handles most of it. Outside the scheme, apply on your DISCOM’s rooftop solar portal or at the sub-division office.
- Feasibility. Systems up to 10 kW are treated as technically feasible with no study. Above 10 kW, the DISCOM has 15 days to finish the study, or approval is taken as given.
- Install and submit the work report. The vendor installs the system and uploads the completion details, including panel serial numbers and the inverter certificate.
- Inspection and net meter. The DISCOM inspects the system, replaces your meter with a tested net meter and commissions the connection. Exports start counting from that day.
- Agreement and first bill. You sign the net metering agreement. Check that your first bill shows separate import and export readings.
Keep these ready: latest electricity bill, ID and address proof, property ownership or a no-objection letter from the owner, and a cancelled cheque if you are claiming the subsidy. The step-by-step portal walkthrough with screenshots is in how to apply for PM Surya Ghar.
How to read your net meter
A net meter cycles through several screens. The labels differ by make, but you need only two numbers. Import, usually shown as kWh-Imp, kWh (I) or code 1.8.0, is the total you have drawn from the grid. Export, shown as kWh-Exp, kWh (E) or code 2.8.0, is the total you have sent out.
Note both on the first of each month (the other screens are explained in smart meter reading). Import minus export is your net for the month. If export stays at zero on a sunny week, the meter may not be configured for two-way reading, so call the DISCOM before a few months of exports go unrecorded. Some states also fit a separate generation meter near the inverter. It counts what the panels make, not what you export, so do not use it for your bill.
Virtual and group net metering for flats
If you live in an apartment, your own roof share may be too small, and your meter is far from the panels. Group net metering lets one system’s exports be credited to several meters held by the same owner. Virtual net metering lets several consumers, such as flat owners in one society, share the credit from one common system. Telangana has allowed both for systems under 100 kW since November 2025, and several other states have them in draft. Check your state rules before an RWA commits to a design.
Common problems and what to do
- Bill not ₹0 despite exports: fixed charges and duty stay. Check that the units line is near zero.
- No export reading on the bill: the meter may be set to import only. Ask the sub-division to reprogram it.
- Net meter not installed weeks after inspection: write to the DISCOM with your application number, then go to its Consumer Grievance Redressal Forum.
- Bank shrank in April: the yearly settlement has happened. The payout appears as a credit, usually on a bill in the first quarter.
Frequently asked questions
What is net metering in a solar system?
Net metering is a billing arrangement where a two-way meter records the power you export from your rooftop and the power you import from the grid. You are billed only for imports minus exports, plus fixed charges, and surplus units carry forward.
How much does a solar net meter cost?
Usually ₹3,000 to ₹8,000 for a home, plus an application fee of nil to ₹5,000, depending on the DISCOM. Three-phase meters cost more. Under PM Surya Ghar, check whether your vendor’s package includes it.
What happens to extra solar units at the end of the year?
Most states settle the banked units once a year, usually at the end of March, and pay for them at a low rate set by the regulator. Maharashtra pays ₹2.82 a unit for 2026–27. The bank then starts again from zero.
How long does it take to get a net meter?
Systems up to 10 kW need no feasibility study, and larger ones must get a decision within 15 days. After installation, the DISCOM inspects the system and fits the meter, which in practice takes from about two weeks to a couple of months depending on the area.
Can I install solar bigger than my sanctioned load?
In many states, no. The system is capped at your sanctioned load, so you first apply for a load increase, which also raises your fixed charge. Rules differ by state.
Does net metering work in apartments?
Yes, through group or virtual net metering where your state allows it. A society can install one system on the common roof and share the export credit among members, or credit it to the common-area meter.