Net metering is a key mechanism that lets rooftop solar users feed excess electricity into the grid and get credited for it. In India, most states have adopted net metering policies—but the rules (system size limits, settlement periods, crediting methods) vary significantly from one state to another.
For example, in Delhi, the policy allows residential, commercial, and industrial consumers to install rooftop solar systems up to 1 MW under net metering. Credits for exported electricity can be carried forward to offset future bills.
In Maharashtra, the state regulator permits system sizes from around 1 kW to 1 MW under net-metering for different consumer categories.
In Karnataka, policy supports systems from 1 kW up to 1 MW for residential, commercial, and industrial users under net metering, with excess energy credit carried forward.
Some states have adopted newer models like group net metering (GNM) and virtual/net-virtual metering (VNM), which allow sharing of solar credits among multiple users or from a remote installation. For instance, 18 states/UTs have provisions for GNM/VNM.
Key differences across states include:
• Maximum capacity allowed under net metering (often up to 500 kW or 1 MW)
• Settlement/credit carry-forward period (monthly vs yearly)
• Method of compensation for excess energy (retail rate, average power purchase cost, feed-in tariff)
Because these rules differ from one state or DISCOM to another, solar users must check the specific net-metering regulation in their state before installation.
Conclusion:
Net metering is a powerful tool for rooftop solar users in India—but its benefits depend heavily on state-specific rules. From maximum system size to settlement period and compensation method, the details vary. To get the best return from your solar investment, it’s crucial to understand your state’s net-metering framework and choose an installer familiar with local regulations.
