The Backbone of Solar Savings
Net metering is what makes grid-tied solar systems financially lucrative. Almost 90% of residential installations in India utilize net metering instead of battery backups.
How does it work?
When your solar panels generate more electricity than your house is consuming during the day, the excess power is "exported" out to your local DISCOM's grid. The bi-directional net meter spins backward conceptually. At night, you import power from the grid. At the end of the month, you are billed only for the "Net" difference.
State specific variations
While net-metering is mandated federally up to certain capacities (e.g., 500kW for residential), the exact settlement policies vary by state. In 2026, most states settle banked units annually at the end of the financial year, usually paying you a minimal "Average Pooled Purchase Cost" (APPC) rate for unutilized credits.
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