- The net metering agreement is the contract between the consumer and the DISCOM.
- You sign it after feasibility approval and before the meter goes in.
- Core clauses: parties, system size, metering, billing, safety, term, transfer, disputes.
- Check the name match, capacity vs sanctioned load, and settlement clause first.
- The format varies by DISCOM — verify against your DISCOM’s current template.
The net metering agreement is a short contract, but it locks in how a rooftop system connects, bills and gets settled for the next two decades. Read it once, properly, and you avoid the commissioning delays that catch most EPCs. This guide explains the standard clauses in plain words.
What the net metering agreement is
A net metering agreement is the contract between the consumer and the DISCOM that lets a rooftop solar system connect to the grid and export power. It records the approved system size, the metering setup, how export is billed, and the safety standards the system must meet. The exact format is set by each DISCOM under its State Electricity Regulatory Commission (SERC) rules.
The agreement is signed by the registered electricity consumer on one side and the DISCOM on the other. The EPC usually prepares the file and walks the client through it, but the EPC is not a party to the contract. The consumer holds the connection, so the consumer signs.
When you sign it in the process
You sign the net metering agreement after the DISCOM grants technical feasibility and before the bidirectional meter is installed. It sits in the middle of the net metering process: register, feasibility, agreement, meter install, then commissioning.
Why the order matters
Feasibility approval fixes the system size the DISCOM will allow. The agreement then writes that size down. If you sign before feasibility, you risk a figure that the DISCOM later refuses. Always wait for the approval, then match the agreement to it.
The standard clauses, explained
Most DISCOM agreements share the same clause structure, even when the wording differs. The table below lists each common clause, what it means in plain words, and what to check before signing.
Caption: Common net-metering agreement clauses. Source: Electricity (Rights of Consumers) Rules 2020 and sample DISCOM templates — verify against your DISCOM’s current format.
Parties, premises and system size
The opening clauses name the consumer, the DISCOM, the connection address and the consumer number. They then state the sanctioned load and the approved solar capacity in kW. The capacity must sit within the sanctioned-load cap. If the client wants more, they file a load enhancement first.
Metering, billing and settlement
The metering clause defines the bidirectional or net meter, who supplies it, and any check meter. The DISCOM usually supplies, tests and seals the meter. The billing clause sets how export is netted against import, and how surplus units carry forward or get paid. Both the settlement period and the surplus rate vary by state, so read them against your current SERC rules.
Safety, disconnection and disputes
The safety clause requires the inverter to meet CEA standards with anti-islanding protection. The disconnection clause lets the DISCOM cut the system off for safety or grid work, usually with notice. The dispute clause names the SERC or ombudsman as the forum. Knowing the escalation path before a dispute saves weeks later.
What EPCs must check before the client signs
An EPC should run a quick pre-sign check every time. These five items cause most rejections and commissioning delays.
- Name match — the consumer name must match the electricity bill, PAN and the net-metering application, letter for letter.
- Capacity vs sanctioned load — the kW in the agreement must be within the sanctioned-load cap shown on the bill.
- Settlement clause — confirm the settlement period and surplus rate match the current SERC regulation for that state.
- Inverter standards — the standards named must match the inverter you actually installed; keep the test certificate.
- Term and transfer — note the duration and what happens if the property changes hands.
A clean file at signing means the meter install and commissioning run without back-and-forth. Build the check into your handover so no job skips it.
Duration and renewal
A net metering agreement commonly runs for about 20 to 25 years, matching the expected life of the rooftop system, but the exact term is set by each DISCOM. Some agreements auto-renew at the end of the term, and others need re-signing. Verify the current term with your DISCOM, because this figure moves with each amendment.
What ends the agreement early
The agreement can end early on the grounds the termination clause names — for example a safety breach, a connection change, or the consumer surrendering the connection. If the property is sold, the new owner usually re-signs a fresh agreement under their own name and consumer number.
Stamp duty and signing
Stamp duty on a net metering agreement is usually paid by the consumer, but the amount is state-specific. Some states charge a small fixed duty and others base it on agreement value. Verify the current stamp duty with your DISCOM or the state stamp authority before you print and sign. Treat any number you see online as an estimate that may have changed.
Digital vs physical signing
Many DISCOMs now accept the agreement through their online portal with an e-sign, while some still ask for a printed, stamped copy. Confirm which your DISCOM uses so you do not redo the paperwork. Keep a clean scan of the signed agreement in the job file either way.
Red flags to catch before signing
A few mistakes show up again and again. Catch these and the rest of the file usually follows.
- An old template — using last year’s format when the SERC has amended it; always download the current one.
- Capacity above sanctioned load — signing a kW figure the bill does not support; fix the load first.
- Blank settlement fields — leaving the surplus rate or period blank invites a billing dispute later.
- Wrong meter ownership — assuming the consumer buys the meter when the DISCOM supplies it, or the reverse.
- Name typos — a single mismatched letter against the bill can hold up commissioning.
How SuryaHub helps you manage agreements
The agreement is one step in a long chain, and the chain breaks when a file is incomplete. SuryaHub stores each DISCOM’s current agreement template, runs every job through the net-metering and DISCOM steps, and keeps the signed agreement, feasibility approval and meter certificate in one project file. So your team always signs the right format with the right figures. SuryaHub is pre-revenue; the only real pilots are Suryantra Energy and RGESPL, and every figure here is a scheme fact to verify, not a guarantee.
Keep every agreement in one place
See how SuryaHub tracks templates, signatures and meter steps per DISCOM.
Related guides
Frequently asked questions
What is a net metering agreement?+
A net metering agreement is the contract between the consumer and the DISCOM that allows a rooftop solar system to connect to the grid and export power. It sets the system size, the metering arrangement, how export is billed, and the safety standards. The exact format is set by each DISCOM and SERC.
When is the net metering agreement signed?+
The net metering agreement is signed after the DISCOM grants technical feasibility and before the bidirectional meter is installed and commissioned. The consumer signs as the connection holder, and the DISCOM signs as the licensee. EPCs usually prepare the file, but the registered consumer must sign.
Does the net metering agreement format vary by state?+
Yes. The net metering agreement format varies by state and DISCOM, because each State Electricity Regulatory Commission sets its own template, settlement rules and stamp duty. The clause headings are broadly similar, but the figures and wording differ. Always verify against your DISCOM's current format before signing.
How long does a net metering agreement last?+
A net metering agreement commonly runs for about 20 to 25 years, matching the expected life of the rooftop solar system, but the exact term is set by the DISCOM. Some agreements auto-renew and others need re-signing. Verify the current term with your DISCOM, as this figure changes by state.
What should an EPC check before the client signs?+
An EPC should check that the consumer name matches the bill and PAN, the solar capacity sits within the sanctioned load, the metering and settlement clauses match the current SERC rules, and the inverter standards match what is installed. Confirm the term, disconnection grounds and dispute forum before the client signs.
Who pays the stamp duty on a net metering agreement?+
Stamp duty on a net metering agreement is usually paid by the consumer, but the amount and rule are state-specific. Some states charge a fixed nominal duty and others base it on the agreement value. Verify the current stamp duty with your DISCOM or the state stamp authority before signing.
How does SuryaHub help with net metering agreements?+
SuryaHub stores each DISCOM's agreement template, tracks where every job sits in the net-metering steps, and keeps the signed agreement, feasibility approval and meter certificate in one job file. SuryaHub is pre-revenue; the only real pilots are Suryantra Energy and RGESPL.
Sources & references
Agreement clauses, formats and stamp duty are DISCOM and state specific. Confirm the current template and figures with your DISCOM and the SERC before you sign any agreement.
- Ministry of Power ↗
Electricity (Rights of Consumers) Rules 2020 — the national net-metering framework.
- Central Electricity Authority (CEA) ↗
Technical and metering standards referenced in most agreements.
- DISCOM agreement templates ↗
Each DISCOM publishes its own net-metering agreement — verify against your current state template.
Written by the SuryaHub team · reviewed against MoP, CEA & DISCOM sources · updated 19 June 2026.
Method: Clause meanings are drawn from the Electricity (Rights of Consumers) Rules 2020 and published DISCOM templates, re-checked every 30 days. Formats, terms and stamp duty are state-specific estimates — verify against your DISCOM. SuryaHub is pre-revenue; only Suryantra Energy and RGESPL are real pilots.
Change log: 19 Jun 2026 — first published.