Introduction
If you’ve been considering installing solar panels, you’ve probably heard the term net metering. But what does it really mean, and how can it save you money? In this blog, Solarina Renewable Pvt Ltd explains everything you need to know about net metering in India—in simple terms.
What is Net Metering?
Net metering is a billing mechanism that allows solar panel owners to send excess electricity back to the grid and earn credits. When your solar panels produce more energy than you use, the extra electricity is exported to the utility grid. In return, your electricity provider gives you credits that reduce your future bills.
How Net Metering Works – Step-by-Step
- You generate solar energy during the day using rooftop solar panels.
- Unused electricity is fed into the local grid.
- Your electricity meter runs backward, reducing your bill.
- At night or during low sunlight, you use electricity from the grid.
- Monthly electricity bill = consumption – export credits
Key Benefits of Net Metering
✅ Lower Electricity Bills
Pay only for the “net” amount of power you consume.
✅ Faster ROI on Solar Investment
With net metering, your system pays for itself faster.
✅ Energy Independence
Rely less on the grid and become energy self-sufficient.
✅ Supports Green Energy
You contribute to India’s renewable energy goals.
Net Metering Policy in India
Net metering policies vary slightly across Indian states but follow these general guidelines:
- Available for residential, commercial, and industrial users
- Mostly applicable for systems up to 500 kW capacity
- Requires bidirectional meter installation
- Government-distributed utilities offer credits for each unit exported
💡 Pro Tip: Solarina Renewable Pvt Ltd stays updated with all state-level policies to help you get approvals faster and hassle-free.