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Policy Update 2026 June 2026 • 12 min read
Net Metering in India 2026:
State-Wise Process, Rules & Benefits
Everything homeowners, businesses, and solar professionals need to know about navigating the evolving landscape of Indian grid-interactive solar systems—updated for 2026’s rigorous regulations.
Max Residential Capacity
500 kW
Avg Approval Time
30 Days
Avg Annual Savings
₹78,000
What is Net Metering?
Net metering is a billing mechanism that credits solar energy system owners for the electricity they add to the grid. When your solar panels produce more power than your home or business needs, that excess energy is sent back to the utility grid, effectively spinning your meter backwards.
Under the 2026 guidelines, the bidirectional meter tracks both the energy consumed from the grid and the energy exported. Your monthly bill reflects only the “Net” usage—the difference between what you consumed and what you produced.
Solar Panels Generate Power
Your rooftop panels convert sunlight into DC electricity, which an inverter converts to AC for home use.
Excess Exported to Grid
Surplus generation flows through your bi-directional meter back into the distribution network.
Credits Applied to Bill
Your DISCOM records exported units and deducts them from your monthly energy charges.
💡 Did You Know?
Net metering is a prerequisite for PM Surya Ghar — households must export surplus generation to claim the scheme’s ‘free electricity’ benefits.
How Net Metering Works in India
The process begins with the installation of a government-approved bi-directional smart meter. This device records both electricity drawn from the grid (Import) and surplus solar energy fed back into it (Export).
At the end of each billing cycle, your DISCOM calculates your ‘Net Units’ by subtracting total exported energy from total imported energy. This framework is governed by MNRE and State Electricity Regulatory Commissions (SERCs).
A key benefit of the 2026 policy is the 12-month credit carry-forward. Credits earned in sunny months offset bills during monsoon or winter, with annual settlement at the end of the financial year.
| Scenario | Monthly Consumption | Solar Generation | Net Units Billed |
|---|---|---|---|
| Partial offset | 400 units | 250 units | 150 units |
| Near-full offset | 400 units | 350 units | 50 units |
| Over-generation | 400 units | 500 units | 0 units 100 credited |
Net Metering vs Gross Metering: What's Changing in 2026?
✅ Net Metering
- ✔ Only net difference billed
- ✔ Retail tariff savings
- ✔ Better for most consumers
- ✔ 12-month credit carry-forward
ℹ Gross Metering
- • All generation sold at fixed feed-in tariff
- • All consumption purchased separately
- • Being piloted for new >5 kW systems
2026 Policy Shift: Gross Metering Pilot
The draft National Electricity Policy 2026 signals a potential shift to gross metering for new systems above 5 kW. Existing net metering consumers will be grandfathered — so installing now locks in better terms.
State-Wise Net Metering Rules 2026
Policies updated as of Jan 2026. Click Download to get the full PDF guide.
DISCOM: MSEDCL / TATA Power
DISCOM: BESCOM
DISCOM: TPDDL / BRPL
DISCOM: UGVCL / PGVCL
DISCOM: PSPCL
DISCOM: TANGEDCO
DISCOM: JVVNL / AVVNL
DISCOM: KSEB
DISCOM: APSPDCL / TSSPDCL
DISCOM: WBSSEDCL / UPPCL / MPPKVVCL
Always verify current rules with your local DISCOM portal, as state tariff orders are updated throughout the year.
How to Apply for Net Metering: Step-by-Step
Step 1 — Submit Application
Register on the National Portal or state DISCOM portal. Upload electricity bill (last 6 months), ID proof, site photos, system specs (1–10 kW). Pay nominal fee (₹200–₹1,000).
Step 2 — Feasibility Check & Site Inspection
DISCOM schedules engineer visit within 3–7 days to assess roof space, shading, transformer load, and wiring.
Step 3 — Technical Clearance
Receive approval with system size confirmation and meter type specification.
Step 4 — Installation by Empanelled Vendor
Use a DISCOM-empanelled vendor. They handle SLD (Single Line Diagram), IEC-certified equipment, ALMM compliance (for PM Surya Ghar projects).
Step 5 — Net Meter Installation
DISCOM installs bi-directional meter within 30 working days of application (legal requirement). Free in Delhi.
Step 6 — Commissioning Certificate
Issued after installation, signed by supervising engineer confirming CEA standard compliance.
Step 7 — Start Earning Credits
Monitor generation and credits via DISCOM app or National Portal dashboard.
Use a registered/empanelled vendor — they handle most paperwork and know your local DISCOM’s format requirements for the SLD (Single Line Diagram).
Documents Required for Net Metering Application
👤 Standard Documents
- ✔Latest electricity bill (last 6 months)
- ✔Identity proof (Aadhaar / PAN)
- ✔Property ownership or consent letter
- ✔Site photographs (roof area, existing meter)
- ✔Proposed system specifications
⚙️ Technical Documents
- ✔Single Line Diagram (SLD) — DISCOM format specific
- ✔IEC-certified datasheet for panels and inverter
- ✔ALMM compliance documentation (for PM Surya Ghar projects)
- ✔DCR certificate number (for subsidy-linked projects)
- ✔Commissioning certificate (post-installation)
ALMM Update 2026
ALMM requirements were updated in 2026. Verify current ALMM List-I manufacturers before sourcing modules for PM Surya Ghar installations.
Benefits of Net Metering for Homeowners & Businesses
Reduce Electricity Bills
Only pay for net consumption. Offset 80–100% of your monthly bill with the right system size.
Faster Solar ROI
Typical payback period reduced to 4–6 years when credits are applied throughout the year.
Grid Stability
Surplus energy fed back supports local grid load during peak hours, reducing transmission losses.
Subsidy Eligibility
Net metering is a prerequisite for PM Surya Ghar (up to ₹78,000 central subsidy).
Virtual Net Metering
Housing societies in Karnataka & Maharashtra can share one solar plant across multiple flat accounts.
Policy Lock-In
Existing consumers are grandfathered under net metering even if future policy shifts to gross metering.
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