- The institution that holds the connection signs the net-metering agreement.
- Government rooftops usually qualify for net metering, but some states treat the category differently.
- CAPEX = institution owns the system; RESCO = developer owns and sells power.
- Most institutional work comes through tenders, not walk-in leads.
- Settlement, caps and RESCO subsidy rules are state-specific — verify with DISCOM/SERC.
Schools, hospitals, PSUs and civic bodies have big roofs and steady daytime load — ideal for solar. But government net metering adds layers a home job never has: who can sign, how the department pays, and whether the model is CAPEX or RESCO. This guide maps the institutional rooftop path end to end.
What government and institutional net metering covers
Government and institutional net metering is the same billing model as any rooftop net metering — export is netted against import in units — but applied to a connection held by a public body or institution. The technical process is standard. The difference is who owns the system, who signs, and how the money flows.
This segment includes schools and colleges, hospitals and health centres, PSU offices, municipal buildings and similar institutional roofs. Each sits on a state SERC regulation and a DISCOM process, and most are awarded through a tender.
These roofs are attractive for solar for one simple reason: their load is steady and daytime-heavy. A school runs lights, fans and labs through the day, exactly when the sun is strongest. That high self-use makes net metering valuable, because most generation offsets import directly rather than being exported at a lower rate. The same logic holds for offices and health centres. Match the system size to the daytime load, not the roof area, and the savings story is strong.
Who signs the agreement
The party that holds the electricity connection signs the net-metering agreement. For an institution that is the school, department, hospital or PSU named on the bill — not the EPC and not, in a RESCO deal, the developer.
Signing authority matters
Public bodies have rules about who can bind them. The right officer must sign, and a junior signature can void the agreement later. Before you apply, confirm the authorised signatory and the exact connection name with the institution and the DISCOM. Our agreement format guide covers the clauses to check.
Segment eligibility table
Institutional cases vary, so place each customer before you quote. The table below shows the common institutional segments, the likely model, and the rule that governs each. Every figure and category rule is state-specific — verify with the DISCOM/SERC.
Source: state SERC net-metering regulations and MNRE institutional rooftop programmes. Categories and settlement rules vary by state — verify with DISCOM/SERC.
RESCO vs CAPEX for institutions
The model decides who owns the system and who keeps the savings. Get this right before the tender, because it changes the contract, the meter name and the subsidy question.
CAPEX — the institution owns it
In a CAPEX deal the institution pays for the system and owns it. The EPC builds and hands over. The institution keeps all the savings and the net-metering benefit. This is common where a department has its own budget to spend.
RESCO — the developer owns it
In a RESCO deal a developer builds, owns and operates the system on the institution's roof and sells the power to the institution at a per-unit rate, often under a long agreement. Net metering still runs in the institution's name as the registered consumer. RESCO subsidy eligibility differs by scheme and state, so verify the current RESCO subsidy rule with the DISCOM and scheme guidelines before you promise anything.
Settlement for the government category
Settlement follows the state SERC order, the same as other consumers, but several states set a different carry-forward window or surplus rate for the government category. Some departments also route the credit through their own finance rules, which can slow the cash benefit.
Because settlement varies and changes with each tariff order, never state a single number. Show the model and tell the institution to confirm the current settlement basis with the DISCOM. For large loads, also compare the open-access route in our C&I net metering vs open access guide.
The tender process
Most institutional work is awarded by tender, so winning the job is a paperwork race before it is a build. Read the tender carefully — it usually fixes the model, the capacity, the timeline and the penalties.
What to check in a tender
- Model — CAPEX or RESCO, and the per-unit rate ceiling if RESCO.
- Capacity and roof — sanctioned load, roof area and any structural limits.
- Net-metering responsibility — who applies, and who owns the DISCOM relationship.
- Timeline and penalties — commissioning deadline and liquidated damages.
- O&M term — many institutional tenders bundle multi-year maintenance.
Documents you will need
The document set mirrors a standard net-metering application, with institutional extras. Confirm the exact list with the DISCOM and the tender.
- Connection proof — the institution's connection number and sanctioned load.
- Authorisation — proof of the signatory's authority to bind the institution.
- Single-line diagram — signed by a licensed electrical contractor.
- Equipment datasheets — inverter with anti-islanding protection per CEA standards.
- RESCO agreement — if RESCO, the developer-institution power agreement.
Why institutional jobs need more lead time
A home job can move from quote to commissioning quickly. An institutional job rarely does. Public bodies have approval chains, budget cycles and procurement rules that add weeks at each stage. Build that time into your plan and your cash flow.
The roof itself often needs work first. Many institutional buildings are old, with shared roofs, water tanks, or structures that cannot take panels without strengthening. A structural check before you bid saves a costly surprise later. So does an honest look at shading from nearby blocks and trees on a campus.
Common pitfalls in the institutional segment
Institutional deals stall in predictable places. Watch for these.
- Wrong signatory — an unauthorised signature can void the agreement.
- Assuming RESCO gets the subsidy — subsidy eligibility differs; verify first.
- Ignoring the government-category settlement rule — some states pay surplus differently.
- Oversizing past sanctioned load — triggers a load-enhancement delay.
- Missing tender penalties — late commissioning can cost the whole margin.
How SuryaHub helps with institutional jobs
Institutional jobs run on tenders, agreements and DISCOM steps that all have dates and owners. SuryaHub keeps each job moving from lead through the DISCOM and net-metering steps in one place, with the agreement, signatory, model and settlement basis tracked per project. SuryaHub is pre-revenue; its only real pilots are Suryantra Energy and RGESPL, and figures here are scheme facts, not guarantees.
Run institutional tenders end to end
See how SuryaHub tracks agreements, models and DISCOM steps in one place.
Related guides
Frequently asked questions
Who signs the net-metering agreement for a government rooftop?+
The institution that holds the electricity connection signs the net-metering agreement, such as the school, department or PSU. In a RESCO model the developer owns the system, but the agreement still runs in the registered consumer name. Confirm the signing authority and connection name with your DISCOM before you apply.
Can government and institutional rooftops use net metering?+
Yes, government and institutional rooftops can usually use net metering when the institution holds the connection and the system stays within sanctioned load. Some states cap or treat the government category differently for surplus settlement. Verify the category rule and any cap with your DISCOM and the state SERC.
What is the difference between CAPEX and RESCO for institutions?+
In a CAPEX model the institution buys and owns the solar system and keeps all the savings. In a RESCO model a developer owns and operates the system and sells power to the institution, who pays per unit. Net metering runs in the consumer name in both, but subsidy eligibility can differ. Verify the rule.
How is surplus settled for a government consumer?+
Surplus settlement for a government consumer follows the state SERC order, the same as other consumers, but some states set a different carry-forward or surplus rate for the government category. Settlement may also run through department finance rules. Verify the current settlement basis with your DISCOM and SERC.
How does SuryaHub help with institutional net metering?+
SuryaHub helps EPCs run institutional and government net-metering jobs in one place, tracking each tender, agreement, document set and DISCOM step so nothing slips. SuryaHub is pre-revenue, and its only real pilots are Suryantra Energy and RGESPL. Figures here are scheme facts, not guarantees.
Sources & references
Institutional rules and net-metering models come from primary government sources. Category settlement, RESCO subsidy and caps change with each amendment, so always confirm the current figure with your DISCOM and SERC before you bid.
- Ministry of New & Renewable Energy (MNRE) ↗
Government and institutional rooftop programmes (verify current scope).
- Ministry of Power ↗
Electricity (Rights of Consumers) Rules and grid-connection policy.
- Central Electricity Authority (CEA) ↗
Technical and safety standards for grid connection.
Written by the SuryaHub team · reviewed against MNRE, MoP & CEA sources · updated 19 June 2026.
Method: Institutional and net-metering rules are taken from the government sources above and re-checked every 30 days. Settlement, RESCO and category figures are state-specific estimates — verify with your DISCOM/SERC. SuryaHub is pre-revenue; only Suryantra Energy and RGESPL are real pilots.
Change log: 19 Jun 2026 — first published.