This guide is for solar users who want to understand import, export, billing and state net metering rules.
Your home uses solar first
When rooftop output is available, appliances draw from it. Any shortfall comes from the grid. If generation is higher than your live use, an approved bidirectional meter records export.
The meter does not store energy. It measures flows for billing. Your DISCOM applies the settlement method approved by the state electricity regulator.
Three terms you will see
Net metering
Imports and exports are offset according to local billing rules.
Net billing
Imported and exported units can be valued at different rates.
Gross metering
All solar generation is exported and paid at an approved rate.
Virtual and group net metering can serve multi-consumer buildings where state rules permit them.
A zero energy balance may not mean a zero bill
Fixed charges, taxes, minimum charges, meter charges and other items can remain. Export credits may carry forward only for a defined period. Some rules settle unused credits at a separate rate or lapse them at year end.
Ask your vendor for a sample post-solar bill from your DISCOM. Check import units, export units, net units, carried credit and fixed charges.
Check your current state order
Electricity regulation is state-specific and changes. Before signing a quote, confirm the allowed capacity, connection type, application process, meter ownership, fees, settlement period and treatment of annual surplus.
Start with your State Electricity Regulatory Commission and DISCOM, then compare the process shown on the PM Surya Ghar portal. Our state guide directory explains what to find.
Net metering, net billing and gross metering
| Arrangement | How solar is counted | Main financial question |
|---|---|---|
| Net metering | Imports and exports are offset under the state billing rule | How credits carry forward and settle |
| Net billing | Imported units and exported units receive separate values | What tariff applies to exports |
| Gross metering | All solar generation is sold or credited separately from consumption | Whether the feed-in value supports the project |
People often use “net meter” for every bidirectional meter, but the commercial arrangement matters more than the device name. Read the current State Electricity Regulatory Commission order and DISCOM billing method.
A simple net meter bill example
Suppose a home imports 350 units from the grid and exports 180 units during one billing period. A simple net calculation starts with 170 net imported units. The actual bill can still include tariff slabs, fixed charges, duties, meter charges, previous credits and the state’s settlement method.
If exports are greater than imports, the extra units may carry forward, receive a specified value or expire at the settlement date. Do not assume every exported unit earns the retail tariff. A sample bill from another state may use different rules.
Self-used solar does not pass through the export register. It reduces the electricity the building needs at that moment. For a business with a high daytime load, this direct use can be more valuable than surplus export.
Application steps and net meter cost
- Confirm the consumer category, sanctioned load and permitted solar capacity.
- Submit the rooftop application through the required portal.
- Receive feasibility or the applicable deemed approval.
- Install the compliant system and upload plant details.
- Apply for the meter or metering agreement.
- Complete DISCOM inspection, testing and commissioning.
- Check the first bill against opening meter readings.
The central Electricity (Rights of Consumers) Rules provide a national framework and raised the net metering limit to 500 kW. State regulations and DISCOM procedures still decide the working limit, charges, technical conditions and settlement for your connection.
If you are checking net meter price and application cost, remember that there is no one India-wide fee. The meter, testing, application and connection charges depend on the current state and DISCOM order. Under the August 2026 PM Surya Ghar update, 32 states and Union Territories had removed application and net metering charges for rooftop solar. Verify whether your DISCOM is one of them.
Ask what happens to unused credits
The settlement period can be monthly, annual or another period set by regulation. At the end, surplus credits may receive a lower tariff, carry forward under limits or lapse. This is why an oversized system can have a weaker payback than expected.
Also check time-of-day treatment where it applies, especially for commercial connections. A unit exported at noon may not offset a costly evening unit in the same way under every rule.
Net metering does not provide backup. A standard on-grid inverter shuts down during a grid failure. Backup needs a suitable hybrid or separate system and an essential-load plan.
What to do when the first bill looks wrong
- Photograph import and export readings on the commissioning date.
- Compare meter serial numbers with the agreement and bill.
- Check whether the bill shows both import and export registers.
- Confirm the solar commissioning date and opening readings.
- Raise a written complaint with the DISCOM and keep the reference number.
Do not alter the meter or open sealed equipment. If export remains zero on sunny days, ask the installer to check the inverter export setting and wiring, then ask the DISCOM to check metering if the plant is producing normally.
Common questions
Does net metering work during a power cut?
No. Metering and backup are separate. A normal on-grid inverter shuts down during an outage even if the sun is shining.
Will the DISCOM pay the retail tariff for every extra unit?
Do not assume this. Export valuation and surplus settlement depend on the current state regulation and tariff order.
How much does a solar net meter cost in India?
There is no national price. Meter, testing and application charges depend on the state and DISCOM. Some states and Union Territories have removed charges for PM Surya Ghar applications.
What are the disadvantages of net metering?
Export value, carry-forward and settlement can change by state. Fixed charges remain, approvals take time and an oversized system may create low-value surplus.
Can net metering make the electricity bill zero?
Energy charges can fall sharply, but fixed charges, taxes, arrears and seasonal shortfalls can remain. The result depends on generation, use and the local rule.
Can I install solar above my sanctioned load?
Do not assume so. The permitted ratio and phase requirement depend on the current state regulation and DISCOM process. Check before ordering equipment.
Is net metering available for businesses?
Many state frameworks cover commercial and industrial consumers, but limits, tariffs and charges differ. Check the current regulator order for your category.
Does net metering save money?
It can, but the value depends on the state billing rule. Directly used solar often replaces retail electricity, while exported units can receive a different value. Fixed charges and unused credit rules also affect savings.
Official sources
Rules and portal processes can change. Check these sources before committing money.
About the editorial team
The SolarCost.in Editorial Team checks official rules, public data, calculations, source dates and plain language. The team is independent of installers, vendors and lenders. It does not install solar or sell customer leads, and it does not provide engineering, legal or financial advice. Read our editorial policy or report a correction.