Claire WhitakerBy Claire Whitaker

Updated November 2026

Net metering in India lets a homeowner with rooftop solar send unused electricity back to the grid and receive credit against the power they draw later. In practice, how net metering works in India comes down to three things: a bidirectional meter, a DISCOM-approved application, and a monthly or annual billing cycle that nets your exports against your imports. This guide walks through each step so you know what to expect before you sign anything.

What Happens to Your Solar Power Each Day

During daylight, your panels feed power into the house first. Appliances use what they need, and any surplus flows out to the local distribution network. At night or on cloudy days, the house draws from the grid as usual. A bidirectional meter records both directions, so your DISCOM can calculate the net units you consumed over the billing period.

Shopping for one? See our guide: Dominion Power Net Metering (2026): How It Works and Who Benefits.

Most Indian state regulations treat exported units as a credit that offsets your future consumption. Some states carry unused credit forward month to month, while others settle it at the end of the financial year. Check your state’s specific rules before assuming how your credit will roll over.

Steps to Get Net Metering Approved

  1. Confirm your sanctioned load and your roof’s capacity. Net metering systems are typically sized to match or fall below your sanctioned load.
  2. Choose an empanelled installer. Many states require the installer to be registered under the national rooftop programme.
  3. Submit the net metering application to your DISCOM through its online portal, attaching your identity proof, electricity bill, site photos and the installer’s details.
  4. Wait for a site inspection and technical feasibility approval. The DISCOM checks that the system meets grid connection standards.
  5. Install the solar system and request commissioning. The DISCOM replaces or reprograms your meter to bidirectional and issues a commissioning certificate.
  6. Track your first few bills to confirm that exported units appear as credits.

How Your Bill Is Calculated

Your DISCOM subtracts exported units from imported units for each billing cycle. If you imported more than you exported, you pay for the difference, usually at the fixed charges plus the energy rate. If you exported more, the surplus becomes a credit that appears on the next bill. The table below shows a simple example for one month.

Item Units (kWh)
Imported from grid 320
Exported to grid 180
Net units billed 140

Fixed and demand charges usually still apply regardless of solar output, so your bill will not fall to zero even if your exports match your imports. Review your tariff schedule to see which charges your state exempts.

Factors That Affect Your Credits

Several variables change how much value you get from net metering. Roof orientation and shading determine how much energy your panels produce. Your household’s daytime usage matters, because power you use directly is worth more than power you export and later draw back. Finally, state rules set the credit rate, the carry-forward period and any system size cap, so the same installation can yield different results across states.

Common Mistakes and Tips

  • Installing before approval. Starting work before the DISCOM signs off can delay commissioning or invalidate your application.
  • Oversizing the system. A system far larger than your sanctioned load may be rejected or capped.
  • Ignoring the meter. Keep the bidirectional meter visible and check that it records both import and export.
  • Missing the credit deadline. Some states expire unused credits at the end of the financial year, so track your balance.
  • Skipping the paperwork. Keep copies of every approval, the commissioning certificate and your installer’s warranty.

FAQ

Do I need a special meter for net metering in India?

Yes. Your DISCOM must install a bidirectional meter that records both the electricity you draw from the grid and the surplus you export. Most applications include a meter replacement step after installation.

Will my electricity bill drop to zero with net metering?

Usually not. Fixed charges, demand charges and some surcharges often still apply, so the bill reduces rather than disappears. Your exact result depends on your tariff and state rules.

What happens to unused credits at the end of the year?

This depends on your state. Some DISCOMs carry credits forward, while others settle surplus units at the end of the financial year. Check your state’s policy or ask your DISCOM directly, and consult a qualified electrical professional before making major decisions about system size.

Conclusion

How net metering works in India is straightforward once you understand the flow of power and the billing cycle. Apply through your DISCOM, wait for approval, and confirm that your bidirectional meter is recording exports correctly. Review your state’s rules on credit carry-forward so you know how to get the most from your rooftop system.

Ready to choose one?

Claire Whitaker

About Claire Whitaker

Claire Whitaker is part of our editorial team and reviews and edits our home solar guides, checking product details against manufacturer specifications and owner feedback.