Net Metering in India Explained

Net metering is the billing rule that makes rooftop solar actually save you money in India. Without it, the extra electricity your panels generate during the day would just be wasted. With it, every exported unit becomes a credit against what you use at night. Here's exactly how it works.

The simple version

Daytime: your home runs on solar first. No grid electricity used, no cost.
Daytime surplus: extra solar power your home isn't using flows out to the grid. A bidirectional meter records it as an "export" unit.
Night / low sun: your home draws from the grid as usual. These are "import" units, billed at your normal tariff.
Your bill: import units minus export units. You only pay for the net electricity you actually used.

Why this matters financially: net metering offsets your import at the full retail tariff — not a lower "sell" rate. That's what makes it far more valuable than simply selling all your power to the grid (called gross metering), which pays a lower fixed rate for everything you generate.

How to get it installed

Apply through your DISCOM (often bundled into the PM Surya Ghar portal process).
DISCOM does a technical feasibility check.
Your vendor installs the system; DISCOM installs the bidirectional meter (usually at their cost, though you may pay a small security deposit).
After inspection and a signed net metering agreement, your system is switched on and billing begins.

Timelines vary by state and DISCOM, but the process commonly takes a few weeks from application to a working net meter.

What happens to unused credits?

If your system generates more than you use in a given month, the surplus credit typically carries forward to your next bill. Most states run an annual settlement cycle (often around the same time each year); what happens to any leftover credit at that point varies by state — some carry it forward again, some let it lapse, and a few pay cash for the residual at a set rate. This is exactly why oversizing your system beyond your usage is usually not worth it — excess generation you can't use within the credit window has limited value.

Practical tip: size your system to your actual annual usage (see the sizing guide), not your roof's maximum capacity. A system that closely matches your consumption gets the most value out of net metering.

See your system size and savings

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One thing to double-check locally

Net metering rules — system size limits, whether it's available at all for your consumer category, and settlement details — are set at the state level, so they vary. Before you commit, ask your installer or check your state DISCOM's net metering policy directly. It's a standard, well-established process across most of India, but the exact numbers are worth confirming for your area.

A note on the numbers: figures here are typical ranges as of June 2026 and change often. The PM Surya Ghar subsidy structure, your state's top-up, per-kW prices and electricity tariffs all vary — always confirm current rates on the official portal (pmsuryaghar.gov.in) and get written quotes before you buy. This is planning information, not financial advice.