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Policy 2026-04-10 6 min read SolarWale Team

What Is Net Metering? A Complete Guide for Indian Homeowners

Net metering lets your rooftop solar system feed excess electricity back to the grid, spinning your meter backwards and slashing your bill. Here's how it works in India.

What Is Net Metering? A Complete Guide for Indian Homeowners

Net metering is a billing arrangement where your rooftop solar system stays connected to the electricity grid. When your panels produce more power than your home uses, the surplus flows back into the grid — and your meter literally runs in reverse.

This means you only pay for the 'net' electricity you consume: total usage minus total solar generation. If you generate 400 units and use 300, you only pay for the difference or carry forward a credit.

How does net metering work in India?

India's net metering policy allows residential consumers with rooftop solar systems up to 10 kW (and in some states up to 500 kW for commercial) to export surplus power. Each state has its own regulations, but the core mechanism is the same: a bidirectional meter records both import and export.

The process typically involves these steps:

1. Get a site survey and system design from a qualified EPC company like SolarWale

2. Submit your net metering application to the local DISCOM

3. DISCOM inspects and approves the installation

4. A bidirectional meter is installed

5. Monthly billing reflects net consumption

In Madhya Pradesh, the MP Electricity Regulatory Commission (MPERC) allows net metering for systems up to 1 MW. The settlement is done on a monthly basis, with any excess credits carried forward.

Key documents required:

- Latest electricity bill

- Property ownership proof or NOC

- ID proof (Aadhaar)

- Roof photographs

- Sanctioned load certificate

SolarWale handles the entire net metering application process for customers in Bhopal, Indore, and across Central India — from documentation to DISCOM coordination.