Net Metering Policy in India: How to Sell Your Excess Solar Power (2024 Guide)

🌞 Introduction: What Is Net Metering?

As rooftop solar adoption grows across India, net metering has become one of the most important mechanisms for saving money and earning income from solar energy.
Net metering allows homeowners, businesses, and industries to export unused solar electricity to the government grid and get credited for it on their monthly electricity bill.

In simple words:
Use solar energy β†’ Send extra power to grid β†’ Earn credits β†’ Pay lower or zero bill.


⚑ How Net Metering Works in India

Net metering links your solar rooftop system to the electricity grid. The meter installed is bi-directional β€” it measures:

  • Energy imported from the grid

  • Energy exported to the grid

At the end of the billing cycle:

Β 
Net Units = Units Imported – Units Exported

If exported units are more:
➑ You earn credits or monetary benefits.

If imported units are more:
➑ You pay only for the net difference.


πŸ”‹ Why Net Metering Is a Game-Changer

βœ” 1. Zero or Extremely Low Electricity Bills

Most homes with a 3kW–5kW solar system pay almost zero monthly bills.

βœ” 2. Earn from Excess Solar Power

Unused solar electricity is not wasted. You get credited or paid based on your state’s policy.

βœ” 3. Better ROI on Solar Systems

Net metering accelerates your solar return on investment, reducing payback time to 3–5 years.

βœ” 4. Promotes Renewable Energy

You contribute to sustainable energy and help reduce national grid load.


πŸ›οΈ Net Metering Policy in India (2024 Overview)

Net metering policies are regulated by State Electricity Regulatory Commissions (SERCs).
Here are the key highlights:

πŸ”Ή System Size Eligibility

Most states allow net metering for:

  • Homes: 1 kW to 10 kW

  • Commercial: Up to 500 kW

  • Industrial: Up to 1 MW

πŸ”Ή Tariff for Exported Power

Exported units are credited at:

  • Average grid tariff OR

  • State-defined solar tariff

πŸ”Ή Billing Cycle

Net units are calculated monthly, with some states allowing rollover for 12 months.

πŸ”Ή Meter Type

A bi-directional (net) meter approved by DISCOM is mandatory.


πŸ’‘ Which States Offer the Best Net Metering Benefits?

States with strong net metering support include:

  • Maharashtra

  • Gujarat

  • Karnataka

  • Rajasthan

  • Delhi

  • Tamil Nadu

  • Telangana

These states offer attractive tariffs, faster approvals, and strong solar policies.


πŸ› οΈ How to Apply for Net Metering (Step-by-Step)

Step 1 β€” Apply on Your State DISCOM Portal

Register with your electricity provider (e.g., MSEDCL, TANGEDCO, BSES, etc.)

Step 2 β€” Submit Solar System Details

Upload details of solar capacity, panels, inverter, vendor, and drawings.

Step 3 β€” Technical Feasibility Approval (TFA)

The DISCOM checks grid compatibility.

Step 4 β€” Installation of Net Meter & Inspection

After system installation, the DISCOM installs a bi-directional net meter.

Step 5 β€” System Commissioning

Your solar system goes live and starts exporting power.


πŸ’° How Much Money Can You Earn from Net Metering?

Your earnings depend on:

  • Solar system size

  • Daily sunlight

  • State tariff policy

Example for a 5 kW system:

  • Average generation: 20–22 units/day

  • Own usage: 12–15 units

  • Export: 5–8 units/day

Exported units can yield:

  • βœ” β‚Ή2–₹4 per unit credit

  • βœ” Yearly earnings: β‚Ή3,000–₹10,000+


πŸ“„ Documents Required

  • Aadhaar card

  • Latest electricity bill

  • Rooftop ownership proof

  • Solar plant installation certificate

  • System technical details

  • Net meter application form


🌍 Who Should Install Solar with Net Metering?

Net metering is ideal for:

  • Homeowners

  • Commercial buildings

  • Schools & colleges

  • Small businesses

  • Factories

  • Hospitals

  • Apartments

If your daytime electricity usage is moderate and your rooftop is unshaded, net metering gives maximum benefits.


πŸ§‘β€πŸ”§ How Solar of India Helps You

Solar of India provides:

  • Free consultation

  • System design & load analysis

  • State-wise net metering application

  • MNRE-approved panels & inverters

  • Installation & commissioning

  • Subsidy and documentation support

  • Post-installation service & AMC

We ensure 100% hassle-free net metering approval.


❓ FAQs About Net Metering in India

1. Is net metering available for all consumers?

Yes β€” domestic, commercial, and industrial consumers can apply.

2. What is the validity of net metering credits?

Most states allow credit rollover up to 12 months.

3. Can I install solar without net metering?

Yes, but you cannot export extra energy.

4. Is net metering approved for 1 kW systems?

Yes, even small rooftop systems are eligible.

5. Can I earn cash from net metering?

Some states offer monetary settlement, while others provide bill credits.


🏁 Conclusion

The Net Metering Policy in India empowers consumers to reduce electricity bills and earn from excess solar energy. With government-backed policies and widespread adoption of rooftop solar, net metering has become a profitable and eco-friendly solution for homes and businesses.

Switching to solar is no longer an expense β€” it’s an investment that pays you back.

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