Are you trying to find ways to save money on your electricity bill? Solar net metering can help. If you have installed an on-grid solar system in your home, you may be able to generate more electricity than you previously did. With net metering, you can wisely send extra power back to the grid. In return, you get solar energy credits on your bill.
This does make solar energy more valuable. You will not only save power but also earn renewable energy credits through it. In India, net metering rules will change in 2025.
Keep reading as we explore more about solar net metering, its benefits, the way it works, and what to expect this year. Whether you have solar panels installed in your home or are considering getting one, this guide is for you.
What is Net Metering?
Net metering is a billing system that lets you save on the extra power generated and sent back to the grid through a rooftop solar system installed on your home premises. You earn valuable credits on your solar electricity billing for extra electricity produced and sent to the grid.
When your panels are not producing enough power, you can rely on these credits to draw electricity from the grid without paying any extra charges. This type of energy meter for the solar system helps to lower your electricity bills and supports the use of renewable energy.
Traditional net metering credits solar owners for excess energy being fed back to the grid. Virtual net metering extends these benefits to groups or individuals who do not have their own solar panels but share energy resources in a solar project.
How Does Net Metering Work?
The process behind net metering is straightforward and designed to make solar power accessible and efficient.
Here is how it works:
- Solar Panel Production: Post solar panel installation, the panels generate electricity during the day and night.
- Energy Consumption: You can use some of the generated electricity for your home or business needs, as per the utility consumption you have signed up for in the first place.
- Excess Energy: Any unused electricity is sent back to the grid.
- Earning Credits: Your solar meter records the exported energy, and the utility company gives you valuable credits for it.
- Using Credits: At times, when the on-grid solar system fails to produce enough electricity through the panel, these credits can be used to draw power from the grid.
In simple terms, net metering and virtual net metering allow you to balance your energy consumption by using the grid as a storage system.
How do Electricity Bills Work with Net Metering?
Solar energy credits earned through net metering will lower your electricity bill. At the end of your billing period, if your energy use exceeds the required solar production, you can withdraw from these credits.
If, however, your production has consistently exceeded your consumption, then the surplus credits roll over to the next billing cycle or be settled annually based on your local net metering policies.
This type of system not only promotes the use of renewable energy but also allows for balancing future energy consumption needs
Benefits of Net Metering
Other than the solar panel installation subsidy that you can take advantage of while investing in solar panels for home or business purposes, there are other notable benefits you can reap as well.
- Lowers electricity costs: You pay only for the power you use from the power grid.
- Earn credits: The extra solar power generated gives you bill credits.
- Use grid power whenever needed: You can still get power from the grid when your system is not generating enough.
- Eco-friendly: You reduce your carbon footprint.
- Simplified process: Once your solar system has been connected with our expert help, net metering works automatically.
Eligibility and Requirements for Net Metering in India
Consumers must meet basic eligibility criteria to join India’s net metering program. Residential, commercial, industrial, and government electricity users can apply. Each applicant must have a valid electricity connection from the local Distribution Company (DISCOM).
The applicant must own or legally occupy the premises where the solar system will be installed. The size of the rooftop solar system must follow state rules. Most states allow systems up to 1 megawatt (MW) while other states permit larger systems.
The solar system’s capacity must not be more than the consumer’s sanctioned electricity load. The system must meet the technical rules set by the Central Electricity Authority (CEA) and the local DISCOM.
Consumers who meet these rules can use net metering and reduce their electricity bills by generating solar power.
You can contact our solar panel installation experts to know if you are eligible for net metering.
How to Install Net Metering in India?
You can rightly install net metering by choosing a renowned solar installer like us. Our experts will advance the application process and ensure that every set of required documents is collected and submitted from your side.
Recognized as the runner-up for the Kerala Government Young Entrepreneur Award in renewable energy, our experts at Elsol can make your net metering installation process hassle-free.
With over 2500 solar on-grid systems projects completed, you can rely on our solar panel installation, net metering installation, and maintenance services.
Are there any net metering policies in India?
Yes, India has net metering policies that allow you to connect your solar panels to the electricity grid. This means, you can effectively send extra electricity that you generate back to the grid and get hold of credits on your electricity bill.
In 2025, the Indian government permitted net metering for systems up to 500 kW or the sanctioned load, whichever is lower. Such policies help to save your money and support the use of clean energy.
Conclusion
By now, you must have better understood the process behind net metering and the importance of applying for it along with solar panel installation.
At El Sol Power Solutions, the leading solar company in Kerala, our experts are one call away to answer any queries related to solar net metering. Save on your hard-earned money by installing solar panels and net metering through our expert services.
