If you’ve started looking into solar panels for your home or business in India, you’ve probably heard the term “Net Metering” tossed around. It sounds technical, but in reality, it’s one of the coolest parts of owning a solar system.
Think of net metering as a way to turn the grid into a giant, free “virtual battery.” Here’s everything you need to know about how it works, why it saves you money, and how you can get it set up.
The Big Problem with Sunlight (and the Easy Solution)
Solar panels are most productive during the middle of the day when the sun is high. But here’s the catch: most of us aren’t home during those hours to use all that power. Conversely, at night when we’re actually home using the AC, lights, and TV the panels are resting.
Without net metering, you’d either have to buy expensive batteries to store that daytime energy or simply let it go to waste. Net metering solves this. It allows you to “bank” your excess energy with the grid during the day and “withdraw” it at night.
How Does It Actually Work?
It all comes down to a Bi-directional Meter. Standard meters only count how much power you take from the grid. A bi-directional meter is smarter. it counts the power you take (import) AND the power your solar panels send back to the grid (export).
- During the day: Your panels power your home. If they produce more than you need, the meter literally runs backward, sending the extra juice to the neighborhood grid.
- At night: You pull power from the grid like normal.
- The Bill: At the end of the month, the utility company looks at the “Net” difference. If you exported 100 units and imported 120 units, you only pay for the 20-unit difference.
Why Should You Care? (The Benefits)
- Massive Savings: By offsetting your nighttime usage with daytime production, your electricity bill can drop to near zero.
- No Expensive Batteries: Batteries are the most expensive part of an off-grid system. Net metering lets you use the grid as your storage for just a nominal installation fee.
- Passive Income: In some states, if you generate more than you use over the whole year, the DISCOM (utility company) might even pay you for that extra energy.
- Low Maintenance: Unlike batteries, which need replacing every 5–10 years, a net meter is a “set it and forget it” solution.
Can I Get a Subsidy?
Yes! The Indian government is making it very attractive to go solar. Under the current national rooftop scheme, you can get significant financial help:
- 1 kW system: ₹30,000 subsidy
- 2 kW system: ₹60,000 subsidy
- 3 kW and above: ₹78,000 subsidy
For most households, these savings mean the entire solar system pays for itself in just 6 to 8 years.
How to Get Started (The Simple Steps)
The process varies slightly by state, but here is the general roadmap:
- Permission: Apply to your local DISCOM to install solar.
- Inspection: A DISCOM official will check your site to make sure it’s safe.
- Installation: Set up your panels and inverter.
- Paperwork: Submit your installation certificates and property papers.
- The Switch: A technician will swap your old meter for a bi-directional one. You’re now officially a “prosumer” (a producer and consumer)!
Quick FAQs (The Stuff People Always Ask)
- Does net metering work during a power cut? No. For safety reasons, if the grid goes down, your system shuts off so it doesn’t accidentally shock the linemen working on the wires.
- Can I use a regular inverter? No, you need a grid-tied inverter that can sync up with the utility company’s frequency.
- Is it the same in every state? No. Every state has slightly different rules and rates, so always check with your local provider (like Tata Power, BESCOM, etc.) before you start.
Net metering is the “secret sauce” that makes solar a no-brainer investment in India. It’s better for your wallet, better for the grid, and much better for the planet.
Ready to watch your meter run backward? There’s never been a better time to make the switch.


