Net metering in India 2026: state-wise rules, limits and how it works
Net metering is the mechanism that makes rooftop solar financially rewarding in India. Without it, you would only benefit from solar power when your panels are generating at the exact moment you are consuming electricity. With net metering, you effectively use the grid as a battery: surplus solar power goes in during the day, and you draw it back at night or on cloudy days.
Understanding how net metering works, and how it varies across states, is essential before going solar.
How net metering works: the basics
Your existing electricity meter measures only power flowing from the grid into your home. After solar installation, your DISCOM replaces it with a bidirectional net meter that measures both import (power you draw from the grid) and export (surplus solar power you send to the grid).
During the day, your solar panels generate electricity. If generation exceeds your immediate consumption, the surplus flows into the grid and your export reading increases. At night, or when consumption exceeds generation, you draw from the grid and your import reading increases.
At billing time, you pay only for the net difference: import minus export. If you exported more than you imported in a given month, you have a net credit that carries forward to the next month.
Net metering vs gross metering
India has shifted to net metering as the standard for residential solar. Some older installations or commercial connections may be on gross metering, where all solar generation is exported to the grid at a fixed rate and all consumption is billed at retail tariffs separately.
Net metering is significantly more beneficial for residential consumers because the export is offset against your higher retail import tariff rather than being compensated at a lower fixed export rate.
Annual settlement: what happens to surplus credits
Monthly surplus credits carry forward, but most states have an annual settlement date. Any remaining export credit at the end of the settlement year is compensated by your DISCOM at a rate set by the state’s electricity regulatory commission.
This annual settlement rate is typically lower than the retail tariff. It varies by state and is revised periodically by state electricity regulatory commissions.
The practical implication: size your system to match your annual consumption as closely as possible. Generating far more than you consume means your annual surplus is compensated at a lower rate than if you had used that electricity directly.
State-wise net metering rules and limits in 2026
| State | Regulatory body | System size limit for net metering | Key notes |
|---|---|---|---|
| Rajasthan | RERC | Up to sanctioned load | Annual settlement by DISCOM |
| Maharashtra | MERC | Up to sanctioned load | MSEDCL annual settlement |
| Gujarat | GERC | Up to sanctioned load | Efficient DISCOM processing |
| Delhi | DERC | Up to sanctioned load | GBI incentive may apply separately |
| Karnataka | KERC | Up to sanctioned load | BESCOM fastest in state |
| Tamil Nadu | TNERC | Up to sanctioned load | Separate generation meter required |
| Haryana | HERC | Up to sanctioned load | DHBVN faster in Gurugram area |
| Uttar Pradesh | UPERC | Up to sanctioned load | Five DISCOMs, variable timelines |
| Madhya Pradesh | MPERC | Up to sanctioned load | Variable by DISCOM |
| Telangana | TSERC | Up to sanctioned load | TSSPDCL and TSNPDCL |
| Kerala | KSERC | Up to sanctioned load | KSEB single DISCOM |
Note: The “system size limit” in most states is the consumer’s sanctioned load, meaning you cannot install a solar system larger than your existing sanctioned electricity load without first applying for load enhancement.
The net metering application process
The net metering application typically happens after your solar system is installed. Your installer should file the application with your DISCOM on your behalf, along with technical documentation about the system.
The DISCOM then inspects the installation and replaces your existing meter. The timeline varies enormously by state and city: as fast as 2 weeks in efficient urban DISCOMs to as long as 3 to 4 months in slower rural circles.
After the net meter is installed, your DISCOM issues a commissioning certificate, which is the document you upload to the PM Surya Ghar portal to claim your central subsidy.
Common net metering issues and how to handle them
DISCOM delays on meter installation are the single most common complaint. Escalate in writing to your DISCOM’s grievance redressal officer after 6 weeks. The PM Surya Ghar national portal also has a grievance mechanism. Document every follow-up with dates.
Consumer number mismatch at the meter reading stage. Ensure the name and details on all your documents exactly match your electricity bill. Discrepancies cause processing delays.
Incorrect meter installation where the DISCOM installs a meter that does not accurately record both import and export. If your first post-solar bill looks wrong (showing zero export when you know you have been exporting), raise it immediately with your DISCOM’s metering section.
Changes in net metering policy. State electricity regulatory commissions revise net metering rates and rules periodically. Keep yourself updated through your DISCOM’s website or SERC notices, as a policy change mid-system-life can affect your annual settlement rate.
Summing up
Net metering is what makes rooftop solar economically viable in India. The mechanism is consistent across states, governed by each state’s electricity regulatory commission. The main variables are DISCOM efficiency on meter installation and the annual surplus compensation rate. Understanding these before you install helps you size your system correctly and manage expectations on both the installation timeline and long-term savings.