Net Metering in India: How It Works and Why It Matters
What Is Net Metering?
When a solar system generates more electricity than a household is using at that moment, the surplus flows back into the electricity grid. Net metering is the billing mechanism that gives homeowners credit for this exported power.
With a bi-directional meter installed by your DISCOM, your electricity bill reflects the net difference between what you consumed from the grid and what you exported. In months where your solar generation is high (typically summer), many households find their bills drop dramatically — sometimes to near zero for the energy component.
Why Net Metering Matters for Your ROI
Without net metering, any solar electricity you generate beyond your immediate consumption is simply wasted (in a grid-tied system with no battery). Net metering turns that surplus into monetary value, dramatically improving the payback period of your investment.
For a typical Indian household:
- Daytime solar generation often exceeds home consumption (since occupants are often out)
- Evening consumption draws from the grid — but your net metering credits offset this
- The net result: your electricity bill reflects only the difference between your imports and exports
This is why solar ROI calculations that ignore net metering are incomplete — it’s a core part of how grid-tied solar actually pays for itself.
How Net Metering Is Set Up in India
Step 1: Apply to your DISCOM. After your solar system is installed, your installer will help you apply for net metering to your DISCOM (electricity distribution company). This involves submitting an application with technical details of your system.
Step 2: Technical inspection. A DISCOM engineer inspects the installation to verify it meets grid safety and interconnection requirements.
Step 3: Bi-directional meter installation. Your existing electricity meter is replaced with a net meter capable of measuring bi-directional flow. The cost of meter replacement varies by DISCOM.
Step 4: Commissioning. Once the meter is installed, your system is officially grid-connected and net metering begins.
Typical timeline: The entire process takes two to eight weeks depending on your DISCOM’s workload and administrative efficiency. This is often the longest part of the solar installation process after the panels go up.
Understanding Your Post-Solar Electricity Bill
After net metering is active, your monthly electricity bill will show:
- Units imported from grid (what you consumed)
- Units exported to grid (your solar surplus)
- Net units billed = imports minus exports
If exports exceed imports in a given billing cycle, you will typically have a credit carried forward (rules vary by state) or a near-zero bill for that period.
Note: Fixed charges (meter rental, demand charges, minimum charges) are usually not offset by solar credits and will continue to appear on your bill.
Net Metering Rules Vary by State
India’s electricity sector is regulated by State Electricity Regulatory Commissions (SERCs). Each state sets its own net metering regulations, including:
- Maximum system size eligible for net metering
- Whether credits carry forward monthly or settle annually
- The rate at which annual surplus exports are compensated (some states pay a feed-in tariff for annual net surplus)
- Whether batteries affect net metering eligibility
For the specifics in your state, check your SERC’s latest net metering regulations or ask your installer to walk you through what applies to your DISCOM.
Batteries and Net Metering
Grid-tied solar systems with battery backup are increasingly common but add complexity. Most DISCOMs in India require that battery systems do not export battery-stored power to the grid (only solar-generated surplus can be exported). This distinction matters for your net metering agreement.
If you are considering a hybrid (grid + battery) system, discuss the specific net metering implications with your installer and confirm with your DISCOM before committing to battery capacity.
Net metering is the financial backbone of grid-tied solar in India. Understanding how it works — and what to expect from your DISCOM — helps you make a more informed decision about system size and expected payback.
To understand whether an on-grid, hybrid, or off-grid system is right for your situation, see the on-grid vs off-grid comparison guide.
Use our savings calculator to see how net metering credits factor into your estimated savings.
Net Metering in Uttar Pradesh
Uttar Pradesh operates four separate distribution companies under UPPCL (Uttar Pradesh Power Corporation Limited). Net metering applications, technical inspections, and bi-directional meter installations are all handled by your city’s specific DISCOM — not by UPPCL centrally.
MVVNL — Madhyanchal Vidyut Vitran Nigam Limited
MVVNL covers central UP including Lucknow, Ayodhya, and Raebareli. Net metering applications for these cities go through MVVNL. After an empanelled installer submits your application, an MVVNL engineer inspects the installation before replacing your meter with a bi-directional net meter.
- Rooftop Solar in Lucknow — MVVNL Net Metering Guide
- Rooftop Solar in Ayodhya — MVVNL Net Metering Guide
- Rooftop Solar in Raebareli — MVVNL Net Metering Guide
PUVVNL — Purvanchal Vidyut Vitran Nigam Limited
PUVVNL covers eastern UP including Prayagraj, Varanasi, and Pratapgarh. The net metering process under PUVVNL follows the same five-step sequence — application by empanelled installer, PUVVNL inspection, bi-directional meter installation, and commissioning. Typical timelines are two to six weeks in these cities.
- Rooftop Solar in Prayagraj — PUVVNL Net Metering Guide
- Rooftop Solar in Varanasi — PUVVNL Net Metering Guide
- Rooftop Solar in Pratapgarh — PUVVNL Net Metering Guide
DVVNL — Dakshinanchal Vidyut Vitran Nigam Limited
DVVNL covers southern UP including Kanpur and Agra. Net metering applications in these cities are processed through DVVNL. The empanelled installer submits the application, DVVNL carries out the technical inspection, and then replaces your existing meter with a net meter.
PVVNL — Paschimanchal Vidyut Vitran Nigam Limited
PVVNL covers western UP including Noida, Ghaziabad, and Meerut. Net metering applications in these NCR and western UP cities are processed through PVVNL. The same five-step sequence applies — application by empanelled installer, PVVNL inspection, bi-directional meter installation, and commissioning. Typical timelines are two to four weeks in these cities.
- Rooftop Solar in Noida — PVVNL Net Metering Guide
- Rooftop Solar in Ghaziabad — PVVNL Net Metering Guide
- Rooftop Solar in Meerut — PVVNL Net Metering Guide
Key Point for UP Homeowners
The DISCOM determines which empanelled installer list applies to your city. Before signing a contract, verify your installer is empanelled with the correct DISCOM for your city at pmsuryaghar.gov.in. An installer empanelled with one DISCOM cannot necessarily process net metering through another.