Net Metering vs Net Billing vs Gross Metering in India: Complete 2026 Guide & Comparison

Rajesh Sharma · September 21, 2026 · 8 min read

Net Metering 2026 Net Billing DISCOM Rules Solar Billing Net metering vs net billing smart meter comparison India 2026

    ⚡ Policy Shift Alert: State Electricity Regulatory Commissions (SERCs) across India (Maharashtra, Gujarat, UP, Karnataka, Tamil Nadu) are modifying rooftop solar metering rules. While residential consumers up to 10kW still get true Net Metering in most states, systems above 10kW or commercial users are being shifted to Net Billing or Gross Metering. Here is what it means for your electricity bill.
  

1. What Is the Difference? (Definitions & Rate Mechanics)

Metering Type	How Energy Is Adjusted	Export Credit Rate	Best For
Net Metering	1 Unit Exported = 1 Unit Imported (1:1 kWh offset)	Full Retail Grid Tariff (e.g. ₹7 – ₹9 / unit)	Residential Users (Up to 10 kW)
Net Billing (Feed-in)	Imports billed at retail rate; Exports credited at DISCOM APPC rate	Average Power Purchase Cost (e.g. ₹2.80 – ₹3.50 / unit)	Commercial & High-Load Consumers
Gross Metering	100% solar generation fed to grid; Total consumption bought from grid	PPA Feed-in Tariff (e.g. ₹3.15 – ₹4.00 / unit)	Utility-Scale & Unoccupied Land

2. Financial Impact Comparison: A Real 5kW Example

Assume your 5kW solar system generates 600 units/month. Your home consumes 400 units (200 units exported to grid):

Under Net Metering: Your 200 exported units offset 200 imported units 1-to-1 at retail price (₹8/unit). Bill = ₹0 (only fixed charge). Total Monthly Savings = 600 x ₹8 = ₹4,800/month.
Under Net Billing: Consumption (400 units x ₹8 = ₹3,200). Export credit (200 units x ₹3 APPC rate = ₹600). Net Payable Bill = ₹2,600/month. Total Monthly Savings = ₹2,800/month.

3. State-by-State Metering Caps (2026 Summary)

    Delhi & Haryana: Net Metering up to 500 kW for residential & institutional.

    Maharashtra (MSEDCL): Net Metering up to 10 kW for residential; Net Billing above 10 kW.

    Gujarat (UGVCL/DGVCL): Net Metering up to sanctioned load for residential; 50% banking limit.

    Uttar Pradesh (UPPCL): Net Metering up to 10 kW for PM Surya Ghar residential; Gross Metering for commercial.

4. Which Metering Setup Should You Choose?

If you are a homeowner installing under PM Surya Ghar Muft Bijli Yojana (1kW–10kW), ALWAYS demand Net Metering. It offers the fastest return on investment (ROI payback in 3 to 3.5 years).