Definition
Net metering in India is a billing mechanism allowing rooftop solar customers to export surplus energy to the grid and receive credit against import consumption. Rules vary by state — caps, tariffs, and eligibility set by each State Electricity Regulatory Commission (SERC) and DISCOM.
Quick Facts
| Field | Detail |
|---|---|
| Term | Net Metering (India) |
| Category | India Solar Regulations |
| Governance | State Electricity Regulatory Commissions (SERCs) |
| Implementation | State DISCOMs |
| Difficulty Level | Intermediate |
State-by-State Net Metering Snapshot
| State | Residential cap | Commercial cap | Banking |
|---|---|---|---|
| Maharashtra | 1 MW | 1 MW | Annual |
| Karnataka | 1 MW | 1 MW | Annual |
| Gujarat | 1 MW | 1 MW | Monthly |
| Delhi | 1 MW | 1 MW | Annual |
| Tamil Nadu | 10 kW | Gross only | Monthly |
| Andhra Pradesh | 1 MW | Gross above 1 MW | Annual |
| Rajasthan | 1 MW | 1 MW | Annual |
| Telangana | 1 MW | 1 MW | Annual |
| Uttar Pradesh | 1 MW | 1 MW | Annual |
| West Bengal | 5 kW | 5 kW | Annual |
| Punjab | 1 MW | 1 MW | Annual |
| Haryana | 1 MW | 1 MW | Annual |
Application Workflow
- Site survey by certified installer.
- Online application via DISCOM portal (BESCOM, MSEDCL, etc.).
- Technical feasibility approval (2–4 weeks).
- Sanction letter with capacity approval.
- Installation of MNRE-spec equipment (ALMM modules, BIS-certified inverter).
- CEIG inspection for ≥10 kW systems.
- Bidirectional meter installation by DISCOM.
- Net metering agreement signing.
- PTO and energization.
Common Mistakes
- Specifying inverter not on DISCOM’s approved list.
- Module not ALMM-listed.
- Wrong sanction load assumption (capacity cap is % of sanctioned, not max load).
- Missing CEIG approval for ≥10 kW.
- Underestimating banking/wheeling charges in financial models.
Best Practices
- Verify state-specific cap, banking, and tariff before quoting.
- Confirm inverter is on the specific DISCOM’s approved list (not just MNRE).
- Apply for net metering before purchasing equipment.
- Use a state-empaneled installer for documentation acceptance.
Key Takeaways
- Net metering in India varies state by state — caps, banking, tariffs differ widely.
- Most states cap individual systems at 100% of sanctioned load, up to 1 MW.
- Tamil Nadu and a few states restrict net metering to small residential; gross metering for larger.
- Required steps: DISCOM application → CEIG approval → installation → meter exchange → PTO.
- Verify with specific DISCOM, not generic state policy, before specifying equipment or pricing the project.
Frequently Asked Questions
10 commonly searched questions about Net Metering (India).
What is net metering in India?
A billing arrangement where solar customers export surplus energy to the grid and receive kWh credit against their monthly import bill. A bidirectional meter records both flows; the customer pays only for net consumption.
Does every Indian state have net metering?
Yes, but rules vary widely. Each State Electricity Regulatory Commission (SERC) sets its own caps, eligibility criteria, and tariff structure. Maharashtra, Karnataka, Gujarat, Delhi have strong net metering; Tamil Nadu and Andhra Pradesh have stricter rules.
What's the typical capacity cap?
Most states cap individual systems at 100% of sanctioned load (up to 1 MW for commercial). Tamil Nadu restricts net metering to ≤ 10 kW (above that = gross metering).
Net metering vs. gross metering?
Net metering: net consumption × retail tariff. Gross metering: all solar exports at a feed-in tariff; all imports at retail. Net metering is preferred where consumption matches generation.
Is there a banking charge?
Some DISCOMs apply 'banking' or 'wheeling' charges (₹0.50–1.50/kWh) for solar exports. Others charge ₹0 for residential. Verify with the specific DISCOM.
What is the application process?
1. Online application on DISCOM portal. 2. Sanction letter. 3. CEIG approval (for ≥10 kW). 4. Installation by certified contractor. 5. Bidirectional meter installation. 6. Net metering agreement signing. 7. PTO.
How long is the net metering agreement?
Typically 20–25 years, aligned with the warranty period of solar modules. Renewable on mutual agreement.
Can excess credits roll over?
Yes. Most states allow year-on-year carry forward; some allow monthly carry forward only. Unused credits at end of contract typically expire or get paid at low rates.
Is there a charge for installation?
DISCOM bidirectional meter cost: ₹3,000–10,000. Application fees: ₹500–5,000. CEIG fees: ₹500–5,000. Total: ₹5,000–20,000 fixed cost.
How are exports compensated in Tamil Nadu?
Tamil Nadu restricts net metering to residential ≤ 10 kW. Above this threshold, gross metering applies — all exports at feed-in tariff (~₹2.80/kWh in 2024), much lower than retail.
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