- There is no single national net-metering cap — each state ERC sets its own.
- Three caps bind: the state limit, the sanctioned load, and the transformer (DT) headroom.
- The 500 kW figure is widely cited but contested — verify it for your state.
- Systems ≤10 kW have deemed feasibility under the consumer rules (verify current).
- The state table below is indicative — verify every row against the current order.
"What's the net metering limit?" has no one answer in India. The net metering capacity limit is set by each state regulator and bounded by the customer's sanctioned load and the local transformer. This reference shows the three caps that actually bind, the much-cited 500 kW rule, and an indicative state-by-state table EPCs can use as a quoting starting point.
What the capacity limit actually is
A net-metering capacity limit is the largest rooftop system a DISCOM will let you connect under net metering on a given connection. It is not one number — it is the smallest of several caps that all apply at once. Whichever cap is lowest is the one that binds your project.
That is why two homes in different states, or even on different transformers, can have very different limits for the same roof. The roof area is rarely the constraint; the rules and the grid are.
The three caps that bind
Three separate caps decide how big a net-metered system can be. Your real limit is the lowest of the three.
- The state cap — the ceiling the state regulator sets (a fixed kW, a share of load, or a model switch above a threshold).
- The sanctioned load — net metering is usually capped at the consumer's approved load.
- The transformer (DT) headroom — the local transformer can only carry so much rooftop solar.
An EPC who checks all three before quoting avoids the most common surprise — a system that the roof can hold but the rules or the grid cannot.
The 500 kW national rule
The 500 kW figure is the most-cited net-metering threshold, but it is not a fixed national rule and has been contested and amended over 2024–2026. Some versions of the consumer rules referenced a higher threshold for net metering, with larger systems moving toward net billing or gross metering. The position has shifted, so treat 500 kW as a talking point, not a guarantee.
In practice, what matters is your state's current order. Verify the 500 kW position with your state ERC and DISCOM before you rely on it for a large project. Do not promise a client net metering at a high capacity on the strength of the national figure alone.
Net metering capacity limits by state (indicative)
The table below is an indicative reference, not a legal source. Each row points to the regulator and DISCOM that set the real cap, because those figures move with every amendment. Use it to know who to check, then verify the current number against the state order.
Indicative only — every per-state cap shifts with each ERC order, and the 500 kW national rule has been contested. Verify each row against the current state order before quoting (verify).
The sanctioned-load cap
In most states, net-metering capacity is capped at the consumer's sanctioned load — the maximum power the connection is approved to draw. A 5 kW sanctioned load usually means a net-metering system at or below about that size, unless the state allows a margin above it.
If a client wants a bigger system than the sanctioned load allows, you raise the sanctioned load first through a load enhancement, then size the solar to the new load. Verify the current sanctioned-load rule with the DISCOM before you promise a size.
The distribution-transformer (DT) cap
The local transformer sets a hard ceiling that the state rules cannot override. A loading cap of around 30% of the DT rating for total rooftop solar is commonly cited, but the figure varies by state and is not a single national number — verify it.
If the transformer is already near its cap from other rooftop systems, your project can be limited or refused until headroom exists, even if the state cap and the sanctioned load both allow more. Check the DT early. The DT 30% loading rule guide covers this in detail.
When the metering model switches
In several states, crossing a capacity threshold does not just cap the system — it changes the metering model. Above the threshold, a connection can move from net metering to net billing or gross metering, which changes how the export is paid.
Why this matters for the quote
The model change can sharply alter the savings, because net billing and gross metering usually pay export at a lower rate than retail. So when a project sits near a state threshold, the model — not just the size — drives the economics. Our net vs net-billing vs gross guide explains the difference, and the C&I net metering vs open access guide covers the large-load options.
How EPCs use this reference
Use this page as a starting point, then verify the live numbers. For each project:
- Identify the state and DISCOM — find the regulator that sets the cap.
- Check the sanctioned load — it is usually the tightest cap for homes.
- Check the DT headroom — the grid can be the real limit.
- Confirm the metering model at the chosen size — net, net-billing or gross.
- Verify against the current order — never quote a high capacity on the national figure alone.
How SuryaHub keeps the rules straight
An EPC working across states cannot hold every cap and model in their head. SuryaHub holds the per-state rules and DISCOM steps an EPC works under, so a quoting team can size each system against the right cap and metering model for the right DISCOM, and re-quote without re-learning the rules. SuryaHub is pre-revenue; real pilots are Suryantra Energy and RGESPL, and every state figure here is indicative and must be verified, not guaranteed.
Quote against the right cap, every state
See how SuryaHub keeps per-state rules in front of your team.
Related guides
Frequently asked questions
What is the net metering capacity limit in India?+
There is no single net metering capacity limit in India. Each state regulator sets the cap, and the limit is usually tied to the consumer sanctioned load plus the local transformer headroom. A 500 kW figure is often cited but has been contested. Verify the current cap against your state order before quoting.
Is there a 500 kW net metering limit?+
A 500 kW figure is widely cited as an upper net-metering threshold, but it is not a fixed national rule and has been contested and amended. Some states use different caps or switch the metering model above a threshold. Verify the current 500 kW position with your state ERC and DISCOM before relying on it.
Does sanctioned load limit net metering capacity?+
Yes. In most states net-metering capacity is capped at the consumer sanctioned load, so a larger system needs a load enhancement first. The exact relationship is set by each state regulation. Verify the current sanctioned-load rule with your DISCOM before sizing a system above the existing load.
Why do net metering limits differ by state?+
Net metering limits differ by state because each State Electricity Regulatory Commission sets its own caps, metering model and thresholds, and revises them with each amendment. There is no uniform national cap. This is why an EPC must verify the current limit against the specific state order rather than assume a single figure.
Does crossing the capacity limit change the metering model?+
Yes, in several states. Crossing a capacity threshold can move a connection from net metering to net billing or gross metering, which changes how exported power is paid. These thresholds are set by each state regulator and move with amendments, so verify the current threshold with your DISCOM before sizing a large system.
How does SuryaHub help with state capacity limits?+
SuryaHub holds the per-state rules an EPC works under, so a quoting team can size a system against the right cap and metering model for each DISCOM. The workflow tools keep multi-state work organised. SuryaHub is pre-revenue; real pilots are Suryantra Energy and RGESPL.
Sources & references
The deemed-feasibility threshold and framework come from the consumer rules; the actual state caps come from each SERC order. Always confirm the current cap and metering model against the specific state order before you quote.
- Ministry of Power — Rights of Consumers Rules 2020 ↗
The deemed-feasibility threshold and consumer connection framework.
- Ministry of New & Renewable Energy (MNRE) ↗
Rooftop solar policy and capacity direction.
- State Electricity Regulatory Commissions (e.g. MERC) ↗
Each SERC sets the actual state cap and metering model — verify your state order.
Written by the SuryaHub team · reviewed against MoP, MNRE & SERC sources · updated 19 June 2026.
Method: The framework is drawn from the sources above and re-checked every 30 days. Per-state caps shift with each ERC order and the 500 kW national rule has been contested, so every row in the table is indicative and must be verified. SuryaHub is pre-revenue; only Suryantra Energy and RGESPL are real pilots.
Change log: 19 Jun 2026 — first published.