Net Metering & Solar Billing (2026 Guide)

How exactly does the government give you "free electricity"? It's all thanks to the bi-directional net meter installed on your property.

PM Surya Ghar Solar Banner

What is Net Metering?

Net metering is a smart billing mechanism that credits solar energy system owners for the electricity they add to the state grid.

Under the PM Surya Ghar Muft Bijli Yojana, when your rooftop solar panels produce more electricity than your home is consuming during the sunny daytime hours, the excess power is sent directly back to your local DISCOM's grid.

The specialized bi-directional "net meter" records both the electricity you consume from the grid (usually at night when solar panels aren't working) and the electricity you supply to the grid during the day.

How the Billing Actually Works

At the end of your billing cycle (usually a month), the DISCOM calculates your bill based purely on your "net" consumption.

Formula: Net Consumption = (Units Imported from Grid) - (Units Exported to Grid)


  • If Export > Import: You have a surplus! The DISCOM usually carries forward these surplus units to the next month's bill as a credit. At the end of the financial year, they will pay you for any remaining surplus at a pre-determined tariff rate.
  • If Import > Export: You consumed more than you produced. You simply pay the standard electricity rate only for the net units consumed.
  • The "Muft Bijli" Scenario: If you consume up to 300 units, and your solar plant covers it entirely, your bill is effectively ZERO.

The 5-Step Process to Get a Net Meter

You cannot install a net meter yourself. It is a strictly regulated process controlled by the state DISCOM.

1. Vendor Installation

Once your empaneled vendor completely installs the solar panels, they will upload a 'work completion report' to the national portal.

2. Apply to DISCOM

A formal application for net meter installation is submitted to the local DISCOM through the portal.

3. Official Inspection

A DISCOM engineer visits your premises to inspect the solar plant, strictly ensuring it meets all safety standards (proper earthing, isolation switches).

4. Meter Swap

The standard uni-directional meter is physically replaced with a bi-directional net meter.

5. Final Commissioning

The DISCOM officially issues a commissioning certificate. This is the final step required to unlock your ₹78,000 subsidy payout!


Frequently Asked Questions

What is Accelerated Depreciation (AD)?

It is a tax benefit allowing businesses to depreciate 40% of their solar asset value in the first year to lower corporate tax.

Can I run an AC on a 3kW solar system?

Yes, a 3kW system generates around 12-15 units per day, which is enough to run a 1.5-ton inverter AC during the daytime.

Which banks offer solar loans?

Top banks like SBI, HDFC, ICICI, and specialized NBFCs offer collateral-free solar loans under the scheme.

Is Your Roof Ready?

Before worrying about net meters, make sure you qualify for the scheme. Check your eligibility today.

Check Eligibility Now