22 August 2026
Net metering for solar in India is a billing arrangement that lets rooftop solar owners export surplus electricity to the grid and receive credits against future consumption. In 2026, net metering remains the single most important financial mechanism that makes rooftop solar economically viable, typically improving project payback by 30 to 40% versus systems without export credits.
State policies vary significantly. This guide covers how net metering works, current 2026 state-wise policies for Gujarat, Maharashtra, Tamil Nadu, Karnataka, UP, and Rajasthan, the complete application process, and why high-wattage solar panels maximise your export revenue per square foot of rooftop.
Net metering is a billing mechanism that measures the difference between electricity a consumer imports from the grid and electricity they export to the grid from their rooftop solar system. A bidirectional net meter records both flows, and the consumer pays only for the net difference at their applicable retail tariff.
During the day, when solar generation exceeds household or business consumption, the surplus units flow into the grid and get credited to the consumer's account. At night or on cloudy days, when consumption exceeds solar generation, the consumer draws from the grid and those units are debited from their credit balance.
At the end of each billing period, the DISCOM calculates the net position. If imports exceed exports, the consumer pays the net units at retail tariff. If exports exceed imports, the surplus credits carry forward to the next billing period. Any credits remaining at annual settlement are paid out at a lower "avoided cost" or feed-in-tariff rate, typically ₹2 to ₹4 per unit depending on the state.
Three billing mechanisms exist for rooftop solar in India, and choosing the right one has a large impact on project economics.
|
Mechanism |
How It Works |
Best For |
|
Net Metering |
Exported units offset imported units at retail tariff |
Residential and small C&I (highest financial benefit) |
|
Gross Metering |
All generation is sold to DISCOM at feed-in tariff; consumption billed separately at retail tariff |
Consumers with low daytime consumption or higher C&I capacity |
|
Net Billing |
Imported units billed at retail tariff; exported units credited at separate export tariff (usually lower) |
Larger systems above net-metering capacity caps |
Net metering is almost always the best financial choice for residential and small commercial systems because it credits exports at the full retail tariff. Gross metering makes more sense only when the feed-in tariff exceeds your applicable retail tariff, which is rare in 2026. Net billing is being adopted by some states for systems above net-metering thresholds.
Gujarat leads India in rooftop solar installations, with over 5.15 lakh systems commissioned. The state hosts approximately two-thirds of India's residential solar systems despite having only 5% of the national population.
The application process is broadly similar across states, though DISCOM portals and documentation vary.
Step 1: Register on the national portal. Visit pmsuryaghar.gov.in, enter your state, DISCOM, and electricity consumer number. Verify via OTP.
Step 2: Submit application and get DISCOM feasibility. Upload your electricity bill, Aadhaar, and system size preference. The DISCOM reviews sanctioned load and grid feasibility, typically issuing technical approval in 7 to 15 working days.
Step 3: Choose an MNRE-empanelled vendor and install. Select a vendor empanelled with your specific DISCOM. Installation must use ALMM-listed panels and BIS-certified inverters. Physical installation typically takes 1 to 3 days for residential systems.
Step 4: DISCOM inspection and net meter installation. The DISCOM verifies the installation and installs the bidirectional net meter, usually within 20 to 30 days.
Step 5: Commissioning and subsidy release. Once commissioned, the DISCOM issues a commissioning certificate. The PM Surya Ghar subsidy is credited via DBT within 30 to 45 days. State subsidies follow their own timelines.
Total end-to-end timeline: 45 to 90 days from application to grid connection.
Documents Required
Consider a 25 kW C&I rooftop system in Gujarat, generating approximately 3,600 units per month.
Higher DISCOM tariffs (Maharashtra, Delhi, and Karnataka commercial) shorten payback further, while lower-tariff states extend it.
Under net metering, every additional unit generated on your roof translates directly into either bill offset or export credit. This makes energy density (watts per square foot) the single most important design decision for a rooftop with limited area.
A rooftop installation using 550 W conventional panels generates approximately 220 to 240 Wp per square metre of module area. The same rooftop using 745 Wp high-wattage TOPCon bifacial panels delivers 300+ Wp per square metre, a 25 to 30% increase in installed capacity for the same available rooftop. For a 200 sq metre commercial roof, that translates to 12 to 15 kW of additional installed capacity, generating an additional 1,500 to 1,900 units per month, worth approximately ₹13,500 to ₹17,000 in monthly net metering credits.
For C&I buyers evaluating rooftop solar as an investment, higher-wattage panels are not a technical preference. They are a direct multiplier on export revenue.
Credence Solar manufactures India's first BIS-certified up-to-745 Wp TOPCon bifacial modules at its 2.2 GW fully automated facility in Rajkot, Gujarat. Our flagship modules are engineered specifically for C&I rooftop projects where maximising export revenue per square foot matters most.
Quasar N (N-Type TOPCon Bifacial): 730+ Wp peak wattage, module efficiency exceeding 23.5%, glass-to-glass construction, bifaciality factor 80±5%, IP68-rated. Certified to BIS, CE, ISO, TUV, UL, and IEC standards. View the Quasar N product page.
For a full comparison of module classes available in India, read our guide to the best solar panels in India in 2026.
Net metering is what makes rooftop solar financially compelling in 2026. State policies differ meaningfully, and staying current on your specific DISCOM's rules, capacity caps, and tariff structures directly affects your project's payback and lifetime savings. For C&I buyers, the choice of high-wattage modules amplifies net metering revenue by increasing installed capacity per square foot of available rooftop.
Ready to maximize the export revenue from your C&I rooftop? Talk to the Credence Solar team about our high-wattage TOPCon bifacial modules engineered for maximum yield per square foot. Manufactured at our 2.2 GW automated facility in Rajkot, Gujarat. Call +91 90330 72969 or email info@credencesolar.com, or download our C&I module datasheets.
Net metering is a billing mechanism where rooftop solar owners export surplus electricity to the grid and receive credits against future consumption at their retail electricity tariff. A bidirectional net meter records both imports and exports, and the consumer pays only for the net difference.
Net metering credits exported units against imported units at the retail tariff, meaning you pay only for the net difference. Gross metering sells all your solar generation to the DISCOM at a lower feed-in tariff, while your consumption is billed separately at retail. Net metering delivers higher financial returns for most residential and small commercial installations.
Net billing bills your imports at the retail tariff and credits your exports at a separate export tariff (usually lower than retail). Several Indian states apply net billing for systems above the net-metering capacity threshold, such as HT commercial systems above 1 MW.
Net metering application fees vary by DISCOM but typically range from ₹500 to ₹5,000 depending on system size. The bidirectional net meter itself costs approximately ₹4,000 to ₹15,000 depending on the meter class and phase configuration. Both costs are typically bundled into the total solar installation quote.
Gujarat, Rajasthan, Uttar Pradesh, and Maharashtra currently offer the most favourable net metering policies in 2026. Rajasthan's export tariff increase to ₹3.26 per kWh in late 2025 and UP's ₹30,000 state top-up subsidy make both states particularly attractive for residential installations.
The complete process from application to grid connection typically takes 45 to 90 days in most states. DISCOM feasibility approval takes 7 to 15 days, installation 1 to 3 days, net meter installation 20 to 30 days, and subsidy release 30 to 45 days after commissioning.
Yes, significantly. Higher-wattage panels deliver more installed capacity per square foot of rooftop, generating more units and therefore more export credits. Switching from 550 W to 745 W modules on the same rooftop typically increases capacity by 25 to 30%, directly multiplying net metering revenue.
