A plain-English guide to how net metering works in India's three key solar states — what changed in 2026, who qualifies, and what it means for your solar career.
Net metering policies in Maharashtra, Gujarat, and Rajasthan — updated for 2026
Imagine you install solar panels on your rooftop. On a sunny afternoon, your panels generate more electricity than your home or shop uses. Where does that extra power go? Under net metering, it flows back into the electricity grid — and your power company credits you for it. Net metering is simply a billing arrangement that lets solar owners offset their electricity bills using the excess power their panels produce.
2026 is a significant year for net metering in India. Following the central government's PM Surya Ghar Muft Bijli Yojana scheme — which targets 10 million rooftop solar installations — state regulators across India have revised, simplified, and in some cases expanded their net metering rules. Three states sit at the centre of this shift: Maharashtra, Gujarat, and Rajasthan.
In this guide, we break down the 2026 net metering policy for each state in plain language — who qualifies, how compensation works, and what changed recently. We also explain why these policy changes are creating real demand for trained solar professionals. If you are exploring Solar Energy courses, understanding net metering is one of the most practical skills you can build.
Think of net metering like a bank account for electricity. When your solar panels produce more power than you use, you deposit the surplus into the grid. When you need more power than your panels produce — at night, for example — you withdraw from that account. Your electricity bill at the end of the month only shows the net difference between what you put in and what you took out.
Here is how the process works in practice. Your home or business installs a rooftop solar system. A bi-directional meter replaces your old meter — it tracks power flowing in both directions. Excess solar power flows to the grid, and your DISCOM (the local electricity distribution company) credits your account. At your settlement date, the credits reduce your electricity bill. If credits exceed consumption, some states carry them forward to the next month.
The exact rules — how much you get credited, the maximum system size allowed, and when credits expire — differ by state. This is why comparing Maharashtra, Gujarat, and Rajasthan side by side matters, especially if you are planning a career in Solar PV system design or rooftop installation.
| Term | Plain-English Meaning |
|---|---|
| Net Metering | A billing system where unused solar power flows to the grid and earns you electricity credits |
| Bi-directional Meter | A smart meter that tracks both power you use from the grid AND power you send back to it |
| Settlement Period | How often your energy credits are calculated — monthly in most states, sometimes annually |
| DISCOM | Distribution Company — the local electricity utility that manages your connection and billing |
| APPC | Average Power Purchase Cost — the rate at which a DISCOM buys power; often used to value your solar export |
Maharashtra is one of India's largest electricity markets, with a rooftop solar potential that spans dense urban centres like Mumbai and Pune as well as vast agricultural regions. The Maharashtra Electricity Regulatory Commission — MERC for short — is the state body that sets the rules for net metering. Think of MERC as the referee that decides how much power producers and distributors owe each other.
In Maharashtra, residential, commercial, and industrial consumers can all apply for net metering. Residential consumers are eligible for systems up to their sanctioned load (the maximum power their connection allows). Commercial and industrial consumers can install systems up to 1 MW under the net metering framework. Consumers above 1 MW fall under a separate gross metering arrangement.
MERC compensates surplus solar units at the APPC rate — the average cost at which the DISCOM purchases power from the grid. As of 2026, this rate sits in the range of ₹3.50–₹4.00 per unit, though the exact figure is updated in each tariff order. Credits are settled monthly: at the end of each billing cycle, surplus units reduce your bill. If credits exceed your consumption in a given month, they carry forward to the next month. At the end of the financial year, any remaining credits are encashed at the APPC rate.
Step 1: Submit an application to your local DISCOM (Adani Electricity, MSEDCL, or BEST depending on your area) along with solar system specifications and a single-line diagram.
Step 2: The DISCOM conducts a technical inspection of your premises within 30 days of approval.
Step 3: A bi-directional meter is installed, and your net metering connection goes live.
MERC's 2025–26 tariff order introduced simplified approval timelines for residential applicants below 10 kW — DISCOMs must now complete the process within 30 working days or face penalties. The state also aligned its net metering framework more closely with the central PM Surya Ghar scheme, allowing applicants to access central subsidies alongside state compensation.
Watch-out: Approval timelines still vary significantly between urban DISCOMs (faster) and rural MSEDCL circles (slower). In some rural districts, meter procurement delays can extend the process beyond the mandated 30-day window.
For anyone building a renewable energy career in Maharashtra, understanding MERC orders and DISCOM processes is a core professional skill — not just background knowledge.
Gujarat has long been India's rooftop solar leader — the state consistently ranks first in installed rooftop solar capacity. The Gujarat Electricity Regulatory Commission (GERC) oversees net metering, and the state government's Surya Gujarat scheme has made the application process significantly more accessible for residential consumers.
Surya Gujarat is the state government's rooftop solar programme that provides upfront subsidies to residential consumers who install solar panels. It works alongside — not instead of — net metering. Consumers who install under Surya Gujarat automatically qualify for net metering with their DISCOM. The scheme has dramatically reduced the cost of rooftop solar for households, which in turn has driven demand for trained installers and system designers across the state.
Residential consumers with a sanctioned load of up to 15 kW can apply for net metering under GERC regulations. Commercial consumers are eligible up to their sanctioned load or 1 MW, whichever is lower. Industrial consumers can access net metering up to 1 MW, with gross metering applicable above that threshold.
Gujarat uses the APPC rate (Average Power Purchase Cost) to value surplus solar energy. In simple terms: the DISCOM calculates the average price it pays to buy power from all sources — and pays you that rate for every unit you export. Gujarat's APPC for 2025–26 is approximately ₹3.60 per unit. Credits are adjusted monthly, and year-end surplus units are compensated in cash.
Gujarat DISCOMs — PGVCL, MGVCL, DGVCL, and UGVCL — all offer online net metering application portals. This digital-first process has reduced paperwork and cut approval times compared to states where applications are still handled offline.
Following the Union Budget 2024 and the central PM Surya Ghar Muft Bijli Yojana, Gujarat expanded its Surya Gujarat subsidies and streamlined the DISCOM approval process further. Residential consumers below 3 kW now benefit from a fast-track 15-day approval window. Gujarat also raised the net metering cap for group housing societies in 2025, making apartment-based solar installations more viable.
If you want to work in Gujarat's solar sector, enrolling in Solar courses that cover GERC regulations, rooftop system sizing, and DISCOM application processes will give you a practical edge from day one.
Rajasthan receives some of the highest solar irradiance in the world — its vast desert landscape makes it a natural powerhouse for solar energy. The Rajasthan Electricity Regulatory Commission (RERC) governs net metering in the state, and 2025–26 has seen meaningful policy improvements aimed at making rooftop solar more accessible for both urban and rural consumers.
Residential consumers in Rajasthan can install solar systems up to their sanctioned load under net metering. Commercial consumers are eligible up to 1 MW, and industrial consumers up to 1 MW as well. Consumers with systems above 1 MW move to gross metering, where all generated power is exported to the grid and compensated at a fixed rate — different from the offset-based approach of net metering.
Rajasthan is one of the states where the distinction between net metering and net billing has become relevant. Under net metering, each unit you export offsets one unit you consume — the credit equals the retail tariff rate. Under net billing, you export at a lower rate (the APPC or a fixed feed-in rate) and purchase from the grid at the higher retail tariff. RERC has been reviewing this distinction, and 2025 orders indicate a gradual shift toward net billing for new applicants above certain capacity thresholds. Check the latest RERC tariff order before advising clients on which arrangement applies to them.
The central government's PM Surya Ghar scheme targets households across India, and Rajasthan has integrated it with the state net metering framework. Eligible households can receive up to ₹78,000 in central subsidy for a 3 kW system, with the installation automatically qualifying for net metering with the local DISCOM (JVVNL, AVVNL, or JdVVNL depending on location). State-level implementation has been faster in urban Rajasthan than in rural areas.
Urban consumers in Jaipur, Jodhpur, and Udaipur have relatively straightforward access to net metering — DISCOMs in these cities have dedicated rooftop solar cells and functional online portals. Rural Rajasthan presents a different picture. Grid infrastructure in remote areas can be unstable, making net metering technically complex. Approval timelines are longer, and bi-directional meter availability is inconsistent. This is an honest limitation — but it is also a significant career opportunity for solar professionals willing to work in underserved markets.
Professionals who understand both the policy framework and the ground-level challenges in rural Rajasthan are increasingly sought after. Explore EV and battery storage careers alongside solar — Rajasthan's remote areas are also seeing growing demand for off-grid and hybrid systems that pair solar with battery storage.
Here is a quick-reference table comparing the net metering framework across all three states. Use this when advising clients or choosing where to build your solar career.
| Parameter | Maharashtra | Gujarat | Rajasthan |
|---|---|---|---|
| Regulatory Body | MERC | GERC | RERC |
| Eligible Consumers | Residential, Commercial, Industrial | Residential (up to 15 kW), Commercial, Industrial | Residential, Commercial, Industrial |
| System Capacity Cap | Up to 1 MW | Up to 1 MW (residential cap: sanctioned load) | Up to 1 MW (net billing above threshold) |
| Compensation Method | APPC rate (₹3.50–4.00/unit approx.) | APPC rate (₹3.60/unit approx.) — online portal | Net metering (retail offset) or net billing (APPC) — depends on capacity |
| Settlement Period | Monthly; year-end cash encashment | Monthly; year-end cash encashment | Monthly; year-end review per RERC order |
| Online Application | Partial (MSEDCL portal; some DISCOMs offline) | Yes — all 4 DISCOMs have online portals | Partial (urban DISCOMs online; rural still offline) |
| Key 2026 Change | 30-day mandatory approval window; PM Surya Ghar integration | 15-day fast-track for <3 kW; group housing cap raised | Net billing framework introduced for larger systems; PM Surya Ghar subsidy integration |
ⓘ APPC rates are indicative and updated annually. Verify with the latest state regulatory order before installation.
Every rooftop solar installation that connects to the grid under net metering requires a trained professional — often several. Policy expansion does not just benefit consumers; it directly creates jobs for people with the right technical knowledge. India's rooftop solar target under PM Surya Ghar is 10 million households by 2027. Maharashtra, Gujarat, and Rajasthan together account for a significant share of that target.
Here are four roles that net metering growth is actively driving demand for:
☀ Solar Rooftop System Designer
Designs PV systems sized to a client's load and DISCOM capacity limits. Must understand MERC, GERC, and RERC eligibility thresholds.
📋 Net Metering Application Consultant
Guides homeowners and businesses through the DISCOM application process — documentation, inspections, and meter installation follow-up.
👥 DISCOM Liaison / Project Coordinator
Manages relationships with distribution companies on behalf of solar EPC firms — tracks approvals, resolves delays, and ensures compliance.
🔧 Solar Technician / Installer
Installs, commissions, and maintains rooftop solar systems and bi-directional meters across residential and commercial sites.
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The Solar PV Design course at IISE covers rooftop system design, net metering application procedures, and real-world project work — giving you the skills these roles require from day one. Stay updated on how policies evolve by following our Industry News updates.
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