Net metering is an electricity billing mechanism wherein, the consumers are allowed to sell the surplus energy generated by their solar system to the grid and gets compensated for the same. The net meter is a single, bi-directional meter and can measure the current flowing in two directions.
Net metering substantially improves the return on investment (ROI) for a customer who owns a solar system. Our customers have experienced approximately 30% ROI for the systems installed.
How Net Metering Works:
At the most fundamental level, a net metering system in solar power tracks the electricity generated by a solar installation and compares it to how much is being consumed. When your solar panels generate more energy than your home consumes, the excess energy is sent to the grid. The homeowner will then see their electricity meter run in reverse typically offsetting any amount of electricity consumed from the grid that the homeowner didn’t logo.
That electric credit can offset the electricity used whenever the system isn’t producing the electricity needed to power the home. Think about when it is dark outside or when it is cloudy outside. With solar net metering, a homeowner is compensated for supplying energy to the power supply.
Types of Net Metering Policies in India:
Net metering solar policies vary across Indian states, but generally, they fall into these categories:
- Gross Metering: All generated power is sent to the grid, and you are paid per unit.
- Net Billing: You pay the difference between the electricity you consume and the value of what you export.
- Traditional Net Metering: Most popular, where only the net consumption is billed.
It is important to familiarize yourself with local net metering in India guidelines because some states have specific consumption caps or unique tariff structures.
Benefits of Net Metering for Homeowners:
Homeowners benefit significantly from a solar net metering system:
- Reduced electricity bills: Homeowners can take advantage of an outstanding opportunity for savings with the solar net metering system.
- Increased ROI: payback comes back much quicker on solar panel investment.
- Efficient energy usage: Encourages energy conservation.
- Eco-friendly contribution: Supports India’s renewable energy mission.
These advantages make net metering a win-win solution for both homeowners and the national grid.
How to Apply for Net Metering in India:
Applying for net metering in India involves a few key steps:
- Consult your electricity provider for state-specific guidelines.
- Install a solar power system that complies with local DISCOM norms.
- Submit an application along with technical specifications and ownership documents.
- Inspection and meter installation by the utility.
- Connection and activation of the solar net metering system.
Different states may have online portals to streamline the application process.
Key Components Required:
To set up a successful net metering system in solar power, the following components are essential:
- Solar panels
- Inverter
- Bi-directional energy meter
- Net metering-compatible grid connection
- Monitoring software
Having a certified and experienced installer ensures that your solar net metering system functions optimally and complies with all technical standards.
Common Challenges in Net Metering
Despite its benefits, there are some challenges:
- Regulatory differences across states
- Application delays and bureaucratic hurdles
- Technical limitations like grid compatibility
- Cap on system capacity in certain regions
Staying informed about your local net metering solar policies can help you navigate these issues effectively.
Almost every state in India has the facility of net metering. However, the net-metering policy is not the same throughout the country and varies from state to state.
To avail the net-metering facility the consumer needs to submit an application with the local electricity distribution company (DISCOM) along with the details of the planned rooftop solar project and the requisite fee. The DISCOM reviews the application and checks the feasibility of the solar project. Once approved, an agreement is signed between the consumer and the company, and the net meter is installed.
Once the net meter is installed and the solar system is commissioned, the following parameters are recorded separately for billing purposes
- Units of electricity exported by the Consumer
- Units of electricity imported by the Consumer
- Units of electricity being billed for payment for the current billing period
- Units of electricity being carried over to the next billing period
Generally, if the units of electricity exported exceed the units being imported during the billing period, the excess shall be carried forward to the next billing period as credit. This, however, is governed by the policies of the DISCOM and varies from state to state.
Freyr Energy provides all necessary documentation support to customers so you can enjoy a hassle-free experience of going solar.
Frequently Asked Questions
Net metering in India allows you to send excess solar power to the grid and earn credits. This solar net metering system helps reduce your electricity bills.
Net Metering works when any excess unused power is sent to the grid and this is only after the consumer has sufficient energy assurance. The metre coming along for net metering is usually bi-directional.
The benefits of net energy metering include:
- Reducing power wastage by sending excess power to the grid and in return, getting extra compensated for the power generated.
- Improved ROI assurance for the customer and an estimated 30% ROI is commonly gained.
Net metering solar is available almost across all states in India. However, the policy of net metering might vary from one state to another.
To avail net metering, consumers need to send an application to the local DISCOM with all the key details of the rooftop solar project along with the service fee. After assessing the application and ensuring all the feasibility conditions, an agreement is signed between the company and consumers for the net metering. Thus, a new net metre is installed.
In net metering solar, these are the data recorded:
- Units of electricity exported by the consumer
- Units of electricity imported by the consumer
- Units of electricity being billed for payment for the current billing period
- Units of electricity being carried over to the next billing cycle
At Freyr Energy, we assist all of our consumers who are willing to avail the benefits of net metering. We help with all necessary documentation and paperwork beforehand and ensure a hassle-free service is available.
With a net metering system in solar power, you can reduce your electricity bill by up to 90%, depending on usage and system size.
Approval for net metering in India usually takes 15–45 days, based on local DISCOM and net metering policies.
No, the solar net metering system shuts off during power cuts to prevent grid back-feed, unless paired with a battery.
Any residential, commercial, or industrial consumer with a rooftop solar setup can apply under solar net metering policies in India.
A net metering system in solar power reduces your bill by offsetting consumption with solar credits earned from excess generation.