Net Metering and Solar Billing in India 2026: How DISCOM Credits Your Electricity Bill
What net metering actually means and why it matters
You install solar panels. During peak sunshine hours your system produces more electricity than your home uses. That surplus flows into the DISCOM grid. At night, or on cloudy days, you draw power back from the grid. Net metering is the billing system that tracks both flows and charges you only for the difference: the net amount.
Without net metering, surplus solar power would simply be wasted. With it, every unit you export during the day is effectively “stored” as a credit and used to offset your night-time grid consumption. This is what makes rooftop solar financially worthwhile for Indian homeowners. The national framework for net metering is set by CERC, with each state implementing its own tariff orders.
How the electricity flows: a visual explanation
Daytime: Solar first
Your home runs on solar power directly. No grid import, no cost.
Daytime surplus
Extra solar power flows to grid. DISCOM records it as export units.
Night: Grid import
Home draws from grid. These are import units at your tariff rate.
Net meter records both
Bidirectional meter tracks import and export separately every month.
Bill = Import minus Export
You pay only for net units consumed. Export offsets import at same rate.
Annual settlement
Surplus credits at year-end: adjusted against next bill or cash in some states.
What your electricity bill looks like after solar: a real example
This is the part most people want to see. Here is a worked example for a 3 kW system in Lucknow (MVVNL) for a household that previously consumed 300 units per month and paid approximately Rs 1,950 per month.
| Bill Item | Before Solar | After 3 kW Solar |
|---|---|---|
| Units imported from grid | 300 units | 145 units (nights + cloudy) |
| Units exported to grid | 0 units | 120 units (daytime surplus) |
| Net units billed | 300 units | 25 units |
| Energy charges at Rs 6.50/unit | Rs 1,950 | Rs 163 |
| Fixed charges | Rs 130 | Rs 130 (unchanged) |
| Total monthly bill | Rs 2,080 | Rs 293 |
To understand your specific consumption and what size system makes sense for your home, the electricity bill savings guide walks through the calculation for different consumption levels and cities.
State-wise net metering rules and export credit rates
Net metering rules vary significantly by state. The export credit rate (what rate you effectively “earn” for surplus units), the settlement cycle, and what happens to unused credits at year-end all differ. Here is the current picture across North India:
| State / DISCOM | Export Credit Rate | Settlement Cycle | Unused Credits |
|---|---|---|---|
| Uttar Pradesh (UPPCL) | At retail tariff rate | Annual (April) | Carried forward 12 months |
| Rajasthan (JVVNL / AVVNL) | At retail tariff rate | Annual (April) | Carried forward 12 months |
| Haryana (DHBVN / UHBVN) | Average Power Purchase Cost | Annual | Cash or carry forward |
| Delhi (BSES / TPDDL) | At retail tariff rate | Annual (April) | Carried forward 12 months |
| Punjab (PSPCL) | Approx Rs 3.00 per unit | 6-month cycle | 6 months carry forward |
| Uttarakhand (UPCL) | At retail tariff rate | Annual (April) | Carried forward 12 months |
Check the specific guide for your state: UP solar guide, Rajasthan solar guide, Haryana solar guide.
How to apply for net metering: 5 steps
For PM Surya Ghar applicants this is filed through the portal. Non-scheme installations apply directly to the DISCOM. Delay beyond 30 days holds up commissioning and the subsidy timeline.
DISCOM checks inverter specifications, earthing, isolation switch and grid compatibility. All must meet their technical standards before meter installation is scheduled.
A DISCOM engineer installs the new meter replacing your existing single-direction meter. You pay the security deposit at this stage.
After meter installation the DISCOM issues your commissioning certificate. For PM Surya Ghar applicants this triggers the subsidy disbursement process on the portal.
Your first bill will show import units, export units and net units billed separately. Review it carefully. If only one reading appears, contact your DISCOM billing department immediately.
Annual settlement: what happens to surplus credits
Most states run a 12-month credit cycle. If your solar system generates more than you consume over the year, you end up with surplus credits at settlement (usually April). What happens to those credits depends on your state: