Net Metering Policy India 2026: State-Wise Rules, Billing, Feed-In Tariff & Application Guide

Net Metering: The Economic Engine of Rooftop Solar in India

Net metering is the single policy mechanism that makes rooftop solar economically viable for Indian homeowners. Without net metering, a rooftop solar system would only save money on electricity consumed during daylight hours when the solar panels are generating. Since a typical Indian household consumes 60 to 70 percent of its electricity during evening and nighttime hours (when solar panels produce nothing), the financial benefit of solar would be limited to 30 to 40 percent of total consumption.

Net metering solves this mismatch by allowing you to "bank" surplus daytime solar generation on the grid and withdraw it at night — essentially using the grid as a free, infinite-capacity battery. This guide by Er. Dhramveer Joshi provides a comprehensive overview of net metering policies across India in 2026, covering the regulatory framework, state-wise rules, billing mechanics, and practical advice for homeowners.

The Regulatory Framework: Who Governs Net Metering?

India's net metering policy operates under a layered regulatory framework:

Central Level — Ministry of New and Renewable Energy (MNRE): The MNRE issues national guidelines and targets for rooftop solar deployment. The PM Surya Ghar Muft Bijli Yojana (2024-2026) provides the subsidy framework and mandates DISCOMs to facilitate net metering for subsidised installations.

State Level — State Electricity Regulatory Commissions (SERCs): Each state's SERC issues the detailed net metering regulations, including eligible consumer categories, system size limits, settlement periods, and feed-in tariff rates. The SERC regulations are the legally binding framework that your DISCOM must follow.

DISCOM Level — Distribution Companies: The DISCOM is the implementing agency. It processes net metering applications, conducts technical feasibility studies, installs the bidirectional meter, and handles billing adjustments. The DISCOM's internal processes and timelines can vary even within the same state if multiple DISCOMs operate in different regions.

Key Net Metering Parameters Explained

Eligible System Size

Most states allow net metering for rooftop solar systems with a capacity up to the sanctioned load or contract demand of the consumer's electricity connection. For residential consumers, this typically means systems up to 10 kW (single-phase) or 10 to 20 kW (three-phase). Some states have an absolute cap (e.g., Delhi caps residential net metering at 1 MW for group housing societies), while others follow a percentage rule (e.g., Gujarat allows up to 50 percent of the distribution transformer capacity to be allocated to net metering connections).

Settlement Period

The settlement period is the duration over which export credits are accumulated before financial settlement. Most states use an annual (12-month) settlement period aligned with the financial year (April to March) or the calendar year. At the end of the settlement period, any remaining surplus credit is either paid to the consumer at the feed-in tariff rate or lapsed (forfeited), depending on the state's rules. A longer settlement period is better for the consumer because it allows surplus generation in high-sun months (March to June) to offset high-consumption winter months (December to February).

Feed-In Tariff

The feed-in tariff is the rate at which the DISCOM compensates surplus units after the settlement period. This rate is set by the SERC and is typically much lower than the retail purchase tariff. As of September 2026, feed-in tariffs range from ₹2.00 per kWh (Maharashtra, Tamil Nadu) to ₹3.50 per kWh (Delhi, Haryana). The feed-in tariff is reviewed and updated annually by the SERC based on the Average Power Purchase Cost (APPC) of the DISCOM.

State-Wise Net Metering Rules Summary (2026)

How Net Metering Billing Works: A Practical Example

Let us walk through a real-world billing example for a 5 kW system in Haryana (DHBVN) to illustrate exactly how net metering affects your electricity bill.

System Details: 5 kW rooftop solar with net metering. Monthly solar generation: 650 kWh (average). Monthly household consumption: 500 kWh.

Monthly Calculation: Exported to grid: 400 kWh (during daytime). Imported from grid: 250 kWh (nighttime). Net consumption = Imported − Exported = 250 − 400 = −150 kWh (surplus of 150 units). Billing: Zero charge for the month. 150 kWh credit carried forward.

Summer Month (April): Solar generation: 800 kWh. Consumption: 400 kWh (AC not yet needed). Net surplus: 650 − 250 = 400 kWh credit.

Winter Month (December): Solar generation: 450 kWh. Consumption: 600 kWh (heaters, shorter days). Net deficit: 350 − 500 = −150 kWh (150 units billed). Previous credit: 400 kWh. After offset: 250 kWh credit remaining.

Annual Settlement (March 31): After 12 months, remaining credit: 200 kWh. DISCOM pays: 200 × ₹3.00 = ₹600 credited to your account.

Net Metering Application Process: Step by Step

The application process has been significantly streamlined under the PM Surya Ghar scheme. Here is the general process applicable across most DISCOMs:

Step 1 — Online Registration: Register on the national PM Surya Ghar portal (pmsuryaghar.gov.in) or your DISCOM's solar rooftop portal. You will need your electricity consumer number, Aadhaar number, and bank account details.

Step 2 — Select Installer and System Size: Choose an empanelled installer from the portal's list. The installer will conduct a site survey and recommend a system size based on your rooftop area, sanctioned load, and electricity consumption pattern.

Step 3 — Technical Feasibility Approval: The DISCOM conducts a technical feasibility check to ensure the local distribution transformer can accommodate your solar system without exceeding voltage or power quality limits. This typically takes 7 to 15 working days.

Step 4 — Installation: After receiving feasibility approval, the installer completes the system installation, typically within 7 to 15 days for a residential system.

Step 5 — Inspection and Testing: The DISCOM or its empanelled inspection agency inspects the installation to verify compliance with technical standards (earthing, protection devices, inverter anti-islanding, wiring quality). Any non-compliance must be rectified before approval.

Step 6 — Meter Installation: Upon inspection approval, the DISCOM installs a bidirectional (import-export) meter at your premises. Under the PM Surya Ghar scheme, the meter is provided at no cost to the consumer.

Step 7 — Commissioning: The DISCOM issues a commissioning certificate, and your net metering account is activated. From this date, your export credits begin accumulating.

Common Net Metering Problems and Solutions

Despite the policy framework, homeowners frequently encounter practical difficulties with net metering. Here are the most common issues and how to resolve them:

• DISCOM Delays in Meter Installation: Many DISCOMs have backlogs of hundreds of pending meter installations. If your meter installation is delayed beyond 30 days after inspection approval, file a complaint on the DISCOM's grievance portal and simultaneously escalate to the SERC consumer grievance cell. Under SERC regulations, the DISCOM is required to install the meter within a specified timeframe.
• Incorrect Billing After Net Metering: Some consumers report that their DISCOM continues to bill them based on total import units without adjusting for exports. This is usually a meter configuration issue. Contact your DISCOM's billing department with your bidirectional meter readings (both import and export) and request a billing correction.
• Net Metering Rejection Due to Transformer Capacity: If the DISCOM rejects your application citing insufficient transformer capacity, you can request the DISCOM to upgrade the transformer (they are obligated to do so under SERC regulations for net metering) or reduce your proposed system size to fit within the available capacity.
• Feed-In Tariff Payment Delays: Some DISCOMs delay the annual feed-in tariff payment for surplus credits. Keep records of your monthly export data and the settlement date. If payment is delayed beyond 60 days, file a complaint with the SERC.

Maximising Financial Benefits Under Net Metering

To extract maximum financial value from your net-metered solar system, follow these strategies:

• Right-Size Your System: Design your system capacity to approximately match your annual electricity consumption, not your peak consumption. A system that generates 10 to 15 percent more than your annual consumption is optimal — this ensures you have minimal surplus at settlement while covering seasonal variations.
• Shift Heavy Loads to Daytime: Run your washing machine, dishwasher, water heater, and any other deferrable loads during solar generation hours (10 AM to 4 PM). Every unit consumed directly from solar avoids the less-favourable net metering export rate and saves you the full retail tariff value.
• Monitor Monthly Export-Import Ratio: Track your monthly export and import units through your monitoring app. If exports consistently exceed 50 percent of generation, you are over-exporting and should shift more loads to daytime consumption.
• Plan for Tariff Escalation: Grid electricity tariffs in India have been increasing by 5 to 8 percent annually. As your grid tariff rises, the value of each unit of solar self-consumption increases proportionally, improving your ROI over time.

Expert Advisory by Er. Dhramveer Joshi

Net metering is the policy that makes the financial case for rooftop solar irrefutable. However, I caution homeowners against over-reliance on feed-in tariff income — the rates are low and may be further reduced by SERCs in future tariff revisions. The true value of net metering lies in offsetting your own consumption, not in selling power to the grid. Design your system to self-consume 80 to 90 percent of your solar generation, and treat any feed-in tariff income as a modest bonus rather than a revenue stream. This approach delivers the fastest payback and the most robust long-term financial return regardless of future policy changes.