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Net Metering Explained: How Solar Billing Works in India

Complete guide to solar net metering in India. Learn how it works, billing calculations, application process for TNEB, BESCOM, and other DISCOMs, and required documents.

February 16, 2026
3 min read
net meteringsolar billinggrid connectiondiscom approvalsolar installation processtneb net meteringbescom solar

Net metering is the magic that makes rooftop solar so affordable. It lets you use the electricity grid like a battery — send extra power during the day, take it back at night.

Without net metering, you'd need expensive batteries. With net metering, the grid is your free battery. Let's understand how it works.


What is Net Metering? (Simple Explanation)

Net metering is a billing system where you get credits for the electricity your solar panels send to the grid.

Think of it like this:

  • During daytime, your panels generate more power than you use
  • Extra power goes to the grid
  • You get credit for this (like depositing money in a bank)
  • At night, you use power from the grid (like withdrawing money)
  • Your credits offset this usage
  • At the end of the month, you only pay for net usage
The Best Part
If you export more than you import, your bill is almost zero! You just pay fixed charges (₹50-200/month).

How Net Metering Works (Step by Step)

The Net Meter

A special meter called a "bidirectional meter" or "net meter" replaces your old meter. It tracks:

  • Import: Units you take from the grid
  • Export: Units you send to the grid

Monthly Billing Calculation

Example:

DetailUnits
Solar generated and exported to grid500 units
Power imported from grid (night/cloudy days)200 units
Net consumption500 - 200 = 300 units credit
Amount to pay₹0 (only fixed charges)

If you import more than you export, you pay only for the net difference.

DetailUnits
Solar exported300 units
Grid imported400 units
Net consumption400 - 300 = 100 units
BillPay for 100 units only (~₹800)

Credit Rollover Rules

What happens if you have leftover credits at month-end?

It depends on your DISCOM:

DISCOMCredit Rollover Policy
TNEB (Tamil Nadu)Credits roll over for 1 year, then paid at lower rate
BESCOM (Bangalore)Roll over for billing cycle, adjusted annually
MSEDCL (Maharashtra)Monthly settlement
BSES (Delhi)Quarterly settlement
💡Design Tip
The best solar systems are sized to slightly under-generate compared to your annual consumption. This way, you use all credits and maximize value.

How to Apply for Net Metering

The Process (Simplified)

  1. Install solar system with an approved vendor
  2. Vendor submits application to your DISCOM on your behalf
  3. DISCOM inspection: They verify your installation (1-2 weeks)
  4. Net meter installation: DISCOM replaces your old meter (1-2 weeks)
  5. Approval letter: You get written approval to start exporting power
  6. System goes live: Start saving!

Total timeline: 2-4 weeks after installation

Documents Required

Basic documents you need:

  • Electricity bill copy (last 3 months)
  • Property ownership proof (sale deed / tax receipt)
  • Aadhaar card
  • PAN card
  • Bank account details
  • Roof photos
  • Solar system installation certificate (provided by vendor)
We Handle This
When you install with us, we prepare all documents and submit the application. You just need to provide the basic docs listed above.

DISCOM-Specific Guidelines

Each DISCOM has slightly different procedures:

TNEB (Tamil Nadu)

  • Apply through TNEB portal or offline at section office
  • Maximum capacity: Up to sanctioned load
  • Processing time: 2-3 weeks
  • Old meter is replaced with net meter free of cost

BESCOM (Karnataka)

  • Online application mandatory
  • Technical feasibility study required
  • Processing time: 2-4 weeks
  • Net meter cost: Usually free, sometimes ₹3,000-5,000

MSEDCL (Maharashtra)

  • Through MSEDCL portal
  • Requires grid connectivity approval first
  • Processing time: 3-4 weeks

BSES/BYPL (Delhi)

  • Apply on respective DISCOM website
  • Fast approval process (1-2 weeks)
  • Well-established solar policies

Net Metering vs Gross Metering

Some states offer a choice:

FeatureNet MeteringGross Metering
What happens to solar power?Use at home first, export extraExport everything to grid
Home power sourceSolar + gridGrid only
Payment for exported unitsCredit at retail ratePaid at feed-in tariff rate
Best forMost homes (Recommended)Specific cases only
⚠️Stick with Net Metering
For residential use, net metering is almost always better. Gross metering is mainly for commercial installations or specific scenarios.

Common Issues and Solutions

Issue 1: Net Meter Delay

Problem: DISCOM takes weeks to install net meter

Solution: Your solar system can still run in "self-consumption" mode. You use solar power during the day; you just can't export yet. Follow up with DISCOM regularly.

Issue 2: Bill Still High After Solar

Problem: Expected savings not showing

Possible reasons:

  • Net meter not activated — check with DISCOM
  • System underperforming — check monitoring app
  • Old bill included arrears — wait for next bill
  • Increased consumption — review your usage

Issue 3: Credits Not Showing on Bill

Solution: Check your bill format carefully. Credits might show as:

  • "Export units"
  • "Generation"
  • "Net consumption"

If still unclear, visit DISCOM office or call customer service. Bring your net meter readings.


Myths About Net Metering

Myth 1: "DISCOM will reject my application"

Reality: DISCOMs are mandated by government to approve net metering. As long as your system meets technical standards, approval is guaranteed. Rejection rate is less than 1%.

Myth 2: "Net meter costs ₹50,000"

Reality: Most DISCOMs provide net meters free or for ₹3,000-5,000. This cost is often included in your solar installation quote.

Myth 3: "If I generate too much, DISCOM will penalize me"

Reality: No penalties! Excess generation is either credited or compensated. The worst case is you get paid a lower rate for extra units at year-end.


Benefits of Net Metering

  • No battery needed: Grid acts as your battery (saves ₹1-2 lakh)
  • Maximum savings: Get full retail rate for exported power
  • Simple system: Just panels + inverter, no complex battery management
  • Reliable: Grid backup when solar isn't generating

Start Your Net Metering Journey

Net metering is the reason rooftop solar makes financial sense. Without it, you'd need expensive batteries. With it, you can offset 80-95% of your electricity bill.

Next steps:

We Handle Net Metering for You
When you install solar with us:

✓ We submit all net metering applications
✓ Follow up with DISCOM for approvals
✓ Coordinate net meter installation
✓ Ensure your system is properly commissioned

You just enjoy the savings. Get a free quote now!