Understanding Net Metering: Selling Power to the Grid

Updated: January 21, 2026 • 5 min read

Net Metering is the billing mechanism that makes On-Grid solar systems financially attractive. It acts like a bank account for your electricity.

How it Works

Import: When your solar panels don't produce enough (e.g., at night), you pull electricity from the grid.
Export: When your panels produce excess power (e.g., sunny afternoon), it flows back into the grid.
Net Bill: At the end of the month, you are billed only for the net difference (Import - Export).

Example Scenario

Let's say in January:

You consumed (Imported): 300 units
You generated (Exported): 250 units
Billable Units: 50 units only.

If you export MORE than you import (e.g., Generated 400, Consumed 300), the extra 100 units are carried forward to the next month as credit. At the end of the financial year, discoms may pay you for any remaining balance at a nominal rate (APPC).

Application Process

Net metering requires replacing your old meter with a Bi-directional Meter. This process is handled by your solar installer and approved by the local DISCOM (SEB).