Net Metering Process in India: Steps, Documents and Rules

The net metering process in India has six stages: online application, DISCOM feasibility check, installation by a registered vendor, net meter installation, DISCOM inspection, and commissioning. For homes, all of this runs through the PM Surya Ghar national portal. Systems up to 10 kW don't need a feasibility study, and the DISCOM is supposed to commission the system within 15 days. How long it actually takes, what it costs and how exported units are paid for depend on your state.

This guide is for installers and sales teams who handle this paperwork for customers, and for homeowners who want to know what comes after they sign. It covers the rules, the difference between metering types, each step in order, a documents checklist and the most common reasons files get stuck.

What net metering means in India

Net metering lets a rooftop solar consumer (a "prosumer" in the rules) send surplus power to the grid and use it to offset power drawn from the grid later. A single bi-directional meter records both directions: import (units you take from the DISCOM) and export (units your system pushes into the grid). You are billed on the net figure.

Example: a home imports 420 units and exports 300 units in a month. Under net metering it is billed for 120 units. If exports were higher than imports, the surplus would normally be carried to the next bill as credit.

Net metering is not the only arrangement. Some states or consumer categories use gross metering or net billing, and the difference matters a lot for payback.

Net metering vs gross metering vs net billing

Arrangement	How it works	How exported power is valued	Typical fit
Net metering	One bi-directional meter. Exports are subtracted from imports, unit for unit.	Each exported unit effectively earns your retail tariff until it is used up. Surplus left over at settlement is paid at a rate the state sets.	Homes and small commercial sites that use most of their generation themselves
Net billing / net feed-in	Imports and exports are measured separately, usually with a generation or check meter too.	Imports are billed at the retail tariff. Exports are credited in rupees at a separate feed-in rate that is often lower.	Larger commercial and industrial systems, or consumers above the state's net metering cap
Gross metering	All generation goes to the grid through a separate meter. Consumption is billed normally.	Every generated unit is bought at a fixed tariff set by the commission.	Consumers who want to sell all their power, or where the state offers a gross-metering tariff

For most residential customers, net metering gives the best savings, because every self-consumed or banked unit replaces a unit bought at the retail slab rate. When you size a system from the customer's bill (see our guide on calculating kW from an electricity bill), assume net metering only if the customer's DISCOM actually offers it for their category.

Net metering rules in India (as of September 2026)

Three layers of rules apply.

1. Electricity (Rights of Consumers) Rules, 2020 and amendments

2021 amendment: net metering, gross metering, net billing and net feed-in are to follow State Commission regulations. Where those regulations don't provide for net metering, the Commission may allow it for loads up to 500 kW or the sanctioned load, whichever is lower, with net billing or net feed-in for anything larger. So 500 kW is a central fallback. It is not a limit that applies in every state.
2024 amendment (February 2024): rooftop solar applications up to 10 kW no longer need a technical feasibility study. Above 10 kW, the study must be finished within 15 days (previously 20), or the system is deemed feasible. DISCOMs must strengthen the network for systems up to 5 kW at their own cost, and the commissioning deadline was cut from 30 days to 15 days.

2. State Commission (SERC) regulations

Each SERC decides the details: eligible consumer categories, capacity caps, fees, the settlement period and the rate paid for surplus units. For example, Maharashtra's 2019 rooftop regulations set a registration fee of ₹500 for LT consumers with up to 20 kW sanctioned load (plus ₹100 per extra 20 kW), and buy leftover credited units at the Commission's generic tariff at the end of each financial year. Other states handle it differently, and regulations get amended, so always read the current version for your state.

3. PM Surya Ghar scheme guidelines

For residential systems claiming central financial assistance, MNRE's guidelines add scheme requirements: apply on the national portal, use a vendor registered on the portal, use DCR modules (made in India from Indian cells), upload geo-tagged photos, and pass a DISCOM inspection before the subsidy is released. See the PM Surya Ghar subsidy guide for amounts and eligibility.

The net metering process, step by step

This is the typical sequence for a residential solar net metering application through the PM Surya Ghar portal. Commercial and industrial consumers usually follow similar stages on the DISCOM's own portal.

Register and apply. The consumer registers on pmsuryaghar.gov.in with their state, DISCOM, consumer number and the mobile number linked to the electricity connection, then submits the rooftop solar application. The portal generates an application ID.
Choose a registered vendor. The consumer picks a vendor registered on the portal and agrees on design, components and price. A written vendor-consumer agreement is recommended. Installers who aren't registered yet should read our guide on PM Surya Ghar vendor registration.
Technical feasibility. Up to 10 kW, the application should be deemed accepted without a feasibility study, and any sanctioned load increase this needs is the DISCOM's job. Above 10 kW, the DISCOM has 15 days to decide. Some DISCOMs still show a feasibility approval step on the portal, so wait until it is cleared before you start work.
Installation. The vendor installs the system to MNRE's minimum technical specifications, runs safety checks and explains basic maintenance to the customer. Protection matters here: the grid-tied inverter's anti-islanding function, earthing and surge protection are all checked at inspection.
Upload installation details. The consumer, often with the vendor's help, enters system details on the portal and uploads the required documents and geo-tagged photographs. The application then goes to the DISCOM.
Net meter (bi-directional meter) and agreement. The DISCOM installs the net meter and the consumer signs the net metering (or other) agreement required by state regulation. Depending on the state, the DISCOM supplies the meter or the consumer buys one from an approved vendor, and it may need testing at the DISCOM lab. In areas where smart metering has been awarded under RDSS, the meter goes in through the smart-meter agency.
Inspection and commissioning. The DISCOM physically inspects the system against a checklist, approves it on the portal, or sends it back for corrections. Once approved, the system is commissioned and the subsidy e-token is activated. The guidelines say the subsidy is processed within 15 days of DISCOM approval.

Net meter documents required: checklist

Exact requirements vary by DISCOM, but these are the documents most applications ask for at some stage:

Latest electricity bill showing the consumer number, name and sanctioned load
Mobile number and email linked to the electricity connection (for OTPs and status updates)
Identity proof of the consumer, as the portal or DISCOM asks
Bank account proof in the consumer's name: cancelled cheque, passbook scan or bank statement (needed for the subsidy)
Vendor-consumer agreement
Technical details of the system: module and inverter make, model, capacity and serial numbers, plus DCR proof for modules where the subsidy is claimed
Geo-tagged photographs of the installed system (and of the applicant with it, if the portal asks)
Installation or work completion report from the vendor
Signed net metering agreement with the DISCOM
Net meter test report, if the consumer supplies the meter
Receipt for the registration or application fee, where the state charges one
For companies, firms or housing societies: an authorisation letter or board/committee resolution for the signatory

A few DISCOMs also ask for ownership proof or an owner's NOC when the applicant is a tenant or the connection is in someone else's name. Check this on day one, not at inspection.

Fees and timelines

Fees vary by DISCOM. Costs you may see include a registration or application fee, net meter cost (if the consumer buys it), meter testing charges and sometimes a load enhancement fee above 10 kW. Get the current schedule of charges from the DISCOM or its portal before you quote, and show these as separate lines so the customer isn't surprised.

Timelines are set by rule but vary in practice. On paper, the rules give 15 days for feasibility (above 10 kW) and 15 days for commissioning. In practice, meter availability, inspection backlogs and document corrections can stretch this. Give customers a range, not a date.

How excess units are settled

Under net metering, surplus exports in a billing cycle are usually carried forward as credited units. At the end of the settlement period, often the financial year, leftover credits are paid for at a rate set by the State Commission. That might be a generic tariff or average power purchase cost, and it is usually well below the retail tariff.

For sizing, a system that roughly matches the customer's annual consumption usually beats an oversized one, because year-end surplus earns less than self-consumed units. Our free solar subsidy and savings calculator helps you size against actual consumption.

Common rejection and delay reasons (and how to avoid them)

Name mismatch. The name on the electricity bill, the portal application and the bank account don't match. Fix it before applying. If the connection is in a deceased parent's or landlord's name, a name transfer may be needed first.
Sanctioned load too low. Above 10 kW, a system bigger than the sanctioned load may need a separate load enhancement. Check the bill and handle this early.
Starting work before clearance. Where the DISCOM still shows a feasibility step, installing before approval risks rework or rejection.
Non-DCR modules on a subsidy job. Under the guidelines, using any non-DCR modules makes the installation ineligible for central assistance. Keep DCR certificates and invoices on file.
Weak photos and paperwork. Blurry or untagged photos, unreadable serial numbers, or a missing completion report cause send-backs. Use a standard photo checklist for every site.
Failed technical checks. Missing earthing, no surge protection, a non-compliant inverter or untidy DC cabling can fail inspection. Do your own pre-inspection walkthrough.
Meter delays. Meter stock-outs and testing queues are common. Where the consumer may buy the meter, only use approved makes. If a file sits too long, raise a grievance on the national portal.

Key takeaways for installers

The net metering process follows central rules, but your State Commission sets caps, fees and settlement. Always confirm locally.
Up to 10 kW, there is no feasibility study and the DISCOM should commission within 15 days. Above 10 kW, expect a 15-day feasibility window.
Most delays come from documents and site quality, not from the rules. Get the paperwork right first time.
Keep an eye on the 2026 draft amendment, especially for commercial systems above 5 kW.

Frequently asked questions

How long does net metering take in India?

Under the Electricity (Rights of Consumers) Rules as amended in 2024, systems up to 10 kW are deemed technically feasible, larger systems get a feasibility decision within 15 days, and the DISCOM should commission the system within 15 days. Actual timelines vary by DISCOM, so plan for a few weeks to a couple of months end to end.

What is the net metering limit in India?

The central rules let a State Commission allow net metering up to 500 kW or the consumer's sanctioned load, whichever is lower, where its own regulations do not already provide for it. Each state's regulation sets the actual limit, so check your SERC and DISCOM rules.

Who installs the bi-directional meter for rooftop solar?

The DISCOM installs and seals the net meter after the rooftop system is complete. Depending on the state, the DISCOM supplies the meter or the consumer buys it from an approved meter vendor and gets it tested; in smart-meter project areas it is usually a smart meter installed through the DISCOM's metering agency.

What happens to extra solar units under net metering?

Excess units exported in a billing cycle are usually carried forward as credit to the next bill. Credits left at the end of the settlement period are typically paid for at a rate set by the State Commission, which is usually lower than the retail tariff, so the exact treatment depends on your state.

Is net metering compulsory for the PM Surya Ghar subsidy?

The scheme covers grid-connected systems under whatever metering arrangement the State Commission has approved, including net metering, gross metering and net billing. The subsidy is released only after the DISCOM inspects the system and approves it on the national portal.

Can I apply for net metering online?

Yes. Residential consumers apply through the PM Surya Ghar national portal, which routes the application to the DISCOM. Commercial and industrial consumers generally apply on their DISCOM's own rooftop solar portal.