Net metering FAQ: 20 real questions answered

Net metering is a billing arrangement where the solar units you export to the grid are subtracted from the units you import, so you pay only for the net difference in kWh. A bidirectional meter records both flows. Net metering is governed by each State Electricity Regulatory Commission and run by each DISCOM.

Net metering nets your export against your import in kWh. Net billing pays your export at a separate rate, usually lower than retail, while charging import at the full retail tariff. Gross metering sells all your generation at a fixed feed-in tariff and you buy back your consumption at the retail rate.

Yes. Net metering needs a bidirectional meter, often called a net meter, that records both the electricity you import and the electricity you export. The DISCOM usually supplies, tests and seals this meter. Some DISCOMs also fit a check meter to cross-verify the readings.

The net-metering policy itself does not charge a national fee, but several costs can apply, such as the meter cost, an application or processing charge, and a security deposit in some states. The amounts are state-specific. Verify the current charges with your DISCOM, as they change by state and amendment.

You apply through your DISCOM, often via the national rooftop portal or the DISCOM's own portal. The path is: register and apply, get technical feasibility, sign the net-metering agreement, have the DISCOM install and seal the bidirectional meter, then commission the system so it can export.

A net-metering application commonly needs the latest electricity bill, identity and address proof, ownership or occupancy proof, a single line diagram, and equipment details for the panels and inverter. The exact list is set by each DISCOM, so check your DISCOM's current checklist before you apply.

The registered electricity consumer signs the net-metering agreement on one side, and the DISCOM signs on the other. The EPC usually prepares the file and guides the client, but the EPC is not a party to the contract because the consumer holds the connection.

Net-metering approval timelines vary widely by DISCOM, from a couple of weeks to a couple of months, depending on feasibility, meter availability and the joint inspection. There is no single national timeline. Verify the expected timeline with your DISCOM, as it changes by state and workload.

Feasibility is the DISCOM's technical study to confirm the local grid and distribution transformer can take the proposed solar system before approving the connection. It checks the sanctioned load, the system size and the transformer's spare capacity. Small systems may get deemed feasibility without a separate study.

Deemed feasibility is a rule under the Electricity (Rights of Consumers) Rules 2020 where small rooftop systems, commonly up to a stated kW limit, are treated as feasible without a separate study. The exact threshold has been debated and amended, so verify the current limit with your DISCOM.

Net-metering feasibility is commonly rejected when the distribution transformer is already loaded near its solar cap, when the requested system size exceeds the sanctioned load, or when the documents or single line diagram are incomplete. Fixing the load, resizing the system or correcting the file usually clears it.

The distribution transformer loading cap limits how much total solar capacity can connect to one local transformer so the grid stays safe. The figure is often cited around 30%, but each state sets its own cap. Verify the current loading cap with your DISCOM, as it varies by state and amendment.

Net metering saves money by subtracting your exported solar units from your imported units, so your bill reflects only the net electricity you used. The more of your own generation you consume or export, the lower your net bill, within the settlement rules your state sets.

Surplus units left over after netting are handled under your state's settlement rules. Many states let surplus carry forward to the next billing period, and some pay it out at the end of a settlement year, often at a lower rate. The treatment varies by state, so verify your DISCOM's current rule.

Some states apply charges such as a meter cost, an application or processing fee, a security deposit, or a grid-support charge, while others apply few or none. These charges are set by each State Electricity Regulatory Commission. Verify the current charges with your DISCOM before you quote a client.

Yes. A residential rooftop system can take the PM Surya Ghar subsidy and use net metering, as they cover different things — the subsidy reduces the upfront cost and net metering handles the billing. The system still needs DISCOM feasibility and a net-metering agreement to export.

No. Net metering is set by each State Electricity Regulatory Commission and run by each DISCOM, so the capacity caps, metering model, charges, settlement period and timelines differ by state. The framework is national, but the figures are local. Always verify the current rules with your DISCOM and the SERC.

Most states cap net metering by linking the system size to the consumer's sanctioned load and by the distribution transformer's spare capacity, and some set an upper kW limit per connection. The limits vary by state and have been amended over time, so verify the current cap with your DISCOM.

It depends on your state. Some states keep net metering for larger systems, while others shift bigger systems to net billing or gross metering above a certain size. The threshold and the model are set by your SERC, so verify the current rule for your connection size with your DISCOM.

You can confirm net-metering rules through your DISCOM and your State Electricity Regulatory Commission, which publish the current policy, caps, charges and settlement terms. Because these change with each amendment, treat any figure you read elsewhere as an estimate until your DISCOM or SERC confirms it.