Net Metering – Solar Blog
July 1, 2025
Net Metering – Solar Blog
⚡ How Net Metering Works – Using the Grid Like a Battery
Have you ever wondered what happens to the extra electricity your solar panels generate? Imagine turning your electricity meter into a two-way street—where you can send power to the grid and pull it from the grid as needed. That’s exactly what Net Metering does.
🌞 What Is Net Metering?
Net Metering is a consumer-friendly policy framework adopted across many Indian states under the Ministry of New and Renewable Energy (MNRE). It allows residential, commercial, and industrial solar users to export unused solar energy back to the DISCOM (Distribution Company) and get compensated by reducing their electricity bill.
Here’s how it works:
- When your solar system produces more energy than you consume, the extra electricity flows to the grid.
- A bi-directional net meter measures the amount of electricity you both import and export.
- At the end of the billing cycle, you only pay for the net energy consumed—if your export is more than your import, you may even carry forward credit!
✅ Net Metering turns your solar panels into a revenue-generating asset
Net Metering in India: What You Should Know
India’s net metering policies vary from state to state, but most DISCOMs now offer this mechanism for systems up to 500 kW or 1 MW. As part of the Rooftop Solar Program Phase II, the government actively promotes net metering for individual households and group housing societies.
Highlights of Indian Net Metering Policy:
- Eligible systems: Residential, commercial, institutional, and government buildings
- Capacity limit: Varies by state; usually 1 kW to 500 kW for residential consumers
- You can carry forward any excess credits from your monthly balance up to 12 months.
- Billing: Based on net consumption
🔋 Net Metering vs. Solar Battery Storage
While solar batteries store excess energy physically for later use, net metering allows you to use the grid as a virtual battery, without the added cost of storage systems.
Comparison
Feature | Net Metering | Battery Storage |
Initial Investment | Low | High |
Maintenance | Minimal | Moderate |
Efficiency | High (Grid-based) | Varies (Charge-discharge losses) |
Usage Time | Anytime via grid | Limited to battery capacity |
For most Indian consumers, especially residential users, net metering is the most economical and low-maintenance solution.
💰 How Net Metering Saves You Money
One of the biggest benefits of net metering is the reduction in your electricity bill. By feeding excess power to the grid during the day and using that credit at night, you save on both energy charges and fixed costs.
Let’s say your solar plant generates 450 kWh in a month, and you use 400 kWh. You only pay for the net 50 kWh (if any), and in some cases, you carry a credit for future use.
For larger systems, like those for commercial buildings or housing societies, this translates to significant ROI within 4–6 years.
🛠 Planning a Solar System with Net Metering
Before installing solar panels with net metering in India, ensure you:
- Check your DISCOM’s net metering policy and application process.
- Work with a certified EPC player like SunWorks Energy to handle the approvals.
- Use high-quality meters, inverters, and panels for accurate energy tracking and optimal performance.
SunWorks Energy offers end-to-end EPC services, from engineering and design to net metering application and DISCOM coordination. Explore our solar EPC services to understand how we help you go solar without the hassle.
📣 Looking to Go Solar?
With rising electricity costs and falling panel prices, now is the perfect time to consider a solar-plus-net metering solution. At SunWorks Energy Private Limited, we’ve helped 100+ clients across residential, commercial, and industrial sectors make the switch to solar—profitably and effortlessly.
👉 Get in touch with our solar consultants and discover how much you can save!
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