Net Metering in India: How to Sell Solar Power Back to the Grid

What is Net Metering?

Net metering is a billing mechanism that allows rooftop solar owners to export excess electricity to the grid and receive credits on their electricity bill. When your solar panels produce more power than you consume, the surplus flows back to the grid through a bi-directional meter.

How It Works

1. Daytime: Your solar panels generate electricity. What you don't use goes to the grid.
2. Nighttime: You draw power from the grid as usual.
3. Billing: Your DISCOM credits the exported units against your consumed units.
4. Net bill: You only pay for the net difference.

State-wise Net Metering Policies

Net metering rules vary by state. Here's a snapshot of key states:

Maharashtra

• Capacity limit: Up to sanctioned load or 1 MW, whichever is lower
• Settlement: Annual, at APPC rate for surplus
• Validity: 25 years from commissioning date

Delhi

• Capacity limit: Up to sanctioned load
• Settlement: Quarterly adjustment
• Incentive: Generation-based incentive of ₹2/kWh for first 3 years

Karnataka

• Capacity limit: Up to 1 MW
• Settlement: Annual at ₹3.56/kWh for surplus
• Banking: 12-month banking facility

Tamil Nadu

• Capacity limit: Up to 90% of sanctioned load
• Settlement: Monthly adjustment
• Tariff: Average pooled purchase cost (APPC) for surplus

Common Misconceptions

"I can eliminate my electricity bill completely" — Not entirely. You still pay fixed charges, demand charges, and wheeling charges. But you can reduce the variable (energy) component to near zero.

"Net metering is the same everywhere" — Each state has different rules for capacity limits, settlement periods, and surplus rates. Always check your state's specific policy.

"I need batteries with net metering" — No! The grid acts as your virtual battery. You export during the day and draw at night.

How Bridgeway Power Helps

We handle the entire net metering process:

• Application to your local DISCOM
• Bi-directional meter installation coordination
• System design optimized for maximum export
• Documentation for subsidy and net metering approval

ROI with Net Metering

A well-designed 5 kW rooftop system with net metering can:

• Save ₹4,000-6,000/month on electricity bills
• Pay back in 4-5 years (after subsidies)
• Generate ₹15-20 lakh in savings over 25 years

The key is proper system sizing — you want to match your generation to your consumption pattern for maximum savings.

Want to know your net metering potential? Contact Bridgeway Power for a free rooftop assessment.

FAQ

What is net metering in India?

Net metering is a billing arrangement where your electricity meter runs both ways — you consume grid power when solar isn't generating enough and export excess solar power to the grid, with the DISCOM crediting the exported units against your monthly bill. Only the net difference is billed at the end of the billing cycle.

Do I get paid in cash for the extra solar power I export?

Not directly. In most Indian states, exported units are credited against future consumption for the full billing year. At year-end, any remaining surplus is either paid out at the DISCOM's average power purchase cost (usually ₹3–4 per unit, much lower than retail) or lapses, depending on state policy.

What is the maximum system size allowed under residential net metering?

Most states allow residential net metering up to the consumer's sanctioned load, typically capped at 10 kW for domestic connections without upgrading the service line. Larger systems move to net billing or gross metering, which pay differently.

How long does the net metering approval take?

2–6 weeks in Delhi NCR after submitting a complete application with the discom-approved installer, subject to feasibility approval and meter change. Group applications and rural connections can take longer.

What happens to net metering credits if I move house?

Net metering credits are tied to the service connection, not the person. If you sell or vacate the house, unused credits transfer to the new occupant on that meter. Credits cannot be moved to a different address.