One of the biggest advantages of installing a rooftop solar system in India is net metering. It allows you to export excess solar electricity to the power grid and earn credits or reduce your electricity bill.
In 2026, net metering has become a key reason why residential and commercial consumers are switching to solar. If you've ever wondered "What happens to extra power produced by my solar panels?", this blog explains everything — simply and clearly.
What Is Net Metering?
Net metering is a billing mechanism that allows solar power system owners to:
- Use solar electricity in real time
- Send unused electricity back to the grid
- Receive credits for exported units
A bi-directional (net) meter tracks:
- Electricity imported from the grid
- Electricity exported to the grid
At the end of the billing cycle, you pay only for the net units consumed.
How Net Metering Works (Step-by-Step)
💡 If you export more than you consume, the surplus is carried forward as credits.
Simple Example of Net Metering
👉 Result:
- Your electricity bill = ₹0
- 100 units credited for next month
This is how solar users save thousands of rupees every year.
Who Is Eligible for Net Metering in India?
Net metering is available for:
Residential homes
Apartment societies (subject to DISCOM rules)
Commercial buildings
Industrial units
Eligibility Conditions:
- On-grid or hybrid solar system
- Approved solar installation
- DISCOM permission
- Net meter installation
Types of Solar Systems That Support Net Metering
On-Grid Solar System
- Most popular option
- Lowest cost
- Fully eligible for net metering
Hybrid Solar System
- Net metering + battery backup
- Higher flexibility
- Slightly higher investment
❌ Off-grid systems are not eligible for net metering.
Benefits of Net Metering
Lower Electricity Bills
Reduce your bill by 70–100%.
No Power Wastage
Unused solar electricity is utilized by the grid.
Faster ROI
Net metering significantly improves solar payback period.
Eco-Friendly Contribution
You become a clean energy producer.
Net Metering Policies in India (2026)
Net metering rules vary slightly from state to state, but generally include:
- Capacity limits (commonly up to 10 kW for homes)
- Annual energy settlement
- Carry-forward of credits
- DISCOM-specific approvals
Some states also offer gross metering for large systems, where all generated power is sold to the grid.
Difference Between Net Metering & Gross Metering
| Feature | Net Metering | Gross Metering |
|---|---|---|
| Power usage | Self-consumption + export | All power exported |
| Billing | Net consumption | Fixed tariff |
| Ideal for | Homes & businesses | Large solar plants |
How to Apply for Net Metering
⏱️ Approval timeline: 2–6 weeks (varies by state)
Does Net Metering Make You Money?
Net metering primarily:
- Reduces your electricity bill
- Earns credits for excess power
In some cases (commercial/industrial users), exporting surplus can offset significant monthly expenses, effectively acting as an income-equivalent saving.
Common Myths About Net Metering
❌ "Grid batteries store my solar power" → False
❌ "Solar stops working at night completely" → Partial (grid supports)
❌ "Net metering is ending soon" → No, policies continue to evolve
Is Net Metering Worth It in 2026?
Yes — absolutely.
With:
Net metering is one of the strongest financial reasons to go solar in 2026.
How Shivika Renewable Can Help You with Net Metering
At Shivika Renewable, we specialize in seamless net metering setup and approval processes. Our team handles all documentation, DISCOM applications, and technical requirements to ensure your solar system is connected to the grid and earning credits.
Complete Net Metering Support
End-to-end assistance with DISCOM applications, documentation, and approval processes
Net Meter Installation
Professional installation of bi-directional meters and proper grid connection setup
State-Specific Expertise
Knowledge of state-wise net metering policies and capacity limits across India
System Optimization
Expert system sizing to maximize net metering benefits and credit accumulation
Final Thoughts
Net metering transforms solar from a power solution into a smart financial asset. By exporting excess solar electricity to the grid, you:
- Save money
- Reduce dependence on fossil fuels
- Support India's renewable energy mission
If you're planning a rooftop solar installation, net metering should always be part of your system design.
☀️ Generate power. Use what you need. Sell the rest.
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