Nimesh Katariya Net metering in India is a billing arrangement in which a rooftop solar consumer exports surplus power to the DISCOM grid and is billed only for net consumption, measured by a bidirectional meter. The Electricity (Rights of Consumers) Rules, 2020 set the national framework, while each State Electricity Regulatory Commission sets local capacity limits and settlement terms.
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-listed modules, BIS-certified inverter).
- CEIG inspection for ≥10 kW systems, Heaven Designs prepares the CEIG-compliant electrical drawing package most DISCOMs ask for at this stage.
- 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 commercial solar ROI 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.
Related Reading
Net metering rules are only one piece of getting a rooftop system permitted and energized, our state-wise breakdown of solar permit processing times in India walks through how the DISCOM application and CEIG timelines here interact with overall project scheduling.
For a plain-language explainer aimed at homeowners rather than EPCs, Heaven Green Energy’s net metering guide covers the same mechanism from the customer’s side of the bill. If you’re structuring the commercial paperwork around a system, the Solar Permit Design service page details what a complete DISCOM submission package needs beyond the net metering agreement itself.
Disclosure: Heaven Green Energy and QuickEstimate are Heaven Designs group companies.
Frequently Asked Questions
4 commonly searched questions about Net Metering (India).
Does every Indian state offer net metering?
What is the difference between net metering and gross metering?
What is the net metering application process?
What happens to surplus net metering credits?
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