Updated: June 2026 | ← Back to Blog
What Makes Net Metering Work
Net metering is mandated under CERC (Central Electricity Regulatory Commission) regulations for all grid-connected systems up to 500 kW. While the central framework is consistent, the practical implementation — export credit rates, annual settlement, and application timelines — varies significantly by state and DISCOM.
Net Metering vs Gross Metering
Understanding the difference is critical before installing solar:
- Net metering: Excess solar offsets your import bill at the full retail tariff (₹5–10/unit). Highly favourable for consumers. Standard for residential systems up to 500 kW.
- Gross metering: All generation goes to grid at APPC rate (₹2.50–4/unit). You buy back everything at retail rate. Much less favourable — you effectively sell cheap and buy dear.
Most states use net metering for residential systems. Always confirm with your DISCOM before installation.
State-Wise Net Metering Status (2026)
| State | Model | Export Credit Rate |
|---|---|---|
| Maharashtra | Net metering | Retail tariff rate |
| Gujarat | Net metering | Retail tariff rate |
| Karnataka (BESCOM) | Net metering | Retail tariff rate |
| Rajasthan | Net metering | APPC (₹3.14/unit) |
| Uttar Pradesh | Net metering | APPC (₹2.95/unit) |
| Delhi | Net metering | Retail tariff rate |
| Tamil Nadu | Net metering (up to 1 MW) | Retail tariff rate |
Application Process
- Apply on pmsuryaghar.gov.in or your DISCOM's portal
- DISCOM reviews technical feasibility (7–30 days)
- Install system with MNRE-empaneled vendor
- DISCOM inspection of installed system
- Bidirectional net meter installed by DISCOM
- Commissioning certificate issued — solar system is now live on net metering
Total timeline: 30–90 days after installation, depending on DISCOM workload.
Annual Settlement of Banked Credits
At the end of the financial year (March 31), remaining banked credits are settled in cash at the APPC rate — typically ₹2.50–3.50/unit. This is significantly lower than the retail tariff, so the ideal system is sized to consume most of its generation rather than export large surpluses. Size your system at 80–90% of your annual consumption for optimal economics.
What if my bill goes to zero — do I get paid?
If you export more than you import in a month, credits carry forward to the next month. Annual cash settlement happens at APPC rates at year-end. Most residential consumers cannot receive monthly cash payments for net export.
How long does DISCOM take to install a net meter?
CERC mandates 15 working days. Urban DISCOMs typically complete in 30–45 days. Rural DISCOMs can take 60–90 days. Raise a grievance on the PM Surya Ghar portal if your DISCOM exceeds the mandated timeline.