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.
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.
How Net Metering Works
Daytime (Sunny)
Nighttime (No Sun)
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
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:
| Detail | Units |
|---|---|
| Solar generated and exported to grid | 500 units |
| Power imported from grid (night/cloudy days) | 200 units |
| Net consumption | 500 - 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.
| Detail | Units |
|---|---|
| Solar exported | 300 units |
| Grid imported | 400 units |
| Net consumption | 400 - 300 = 100 units |
| Bill | Pay for 100 units only (~₹800) |
Credit Rollover Rules
What happens if you have leftover credits at month-end?
It depends on your DISCOM:
| DISCOM | Credit 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 |
How to Apply for Net Metering
The Process (Simplified)
- Install solar system with an approved vendor
- Vendor submits application to your DISCOM on your behalf
- DISCOM inspection: They verify your installation (1-2 weeks)
- Net meter installation: DISCOM replaces your old meter (1-2 weeks)
- Approval letter: You get written approval to start exporting power
- 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)
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:
| Feature | Net Metering | Gross Metering |
|---|---|---|
| What happens to solar power? | Use at home first, export extra | Export everything to grid |
| Home power source | Solar + grid | Grid only |
| Payment for exported units | Credit at retail rate | Paid at feed-in tariff rate |
| Best for | Most homes (Recommended) | Specific cases only |
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:
- Calculate how much solar you need for your bill
- Learn the basics of going solar
- Understand on-grid vs hybrid systems
✓ 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!