Introduction
Electricity bills in India are rising faster than ever, and families are looking for smarter ways to save money. While switching off appliances and reducing usage helps a little, the real game-changer is solar energy combined with net metering.
Net metering is a policy that allows you to generate your own electricity using solar panels, consume what you need, and sell the extra power back to the grid. Simply put — your electricity meter runs backwards when you produce more than you consume.
In this blog, we’ll break down how net metering works in India, why it’s important, and how it directly impacts your savings — in simple, human-friendly language.
1. What is Net Metering?
Net metering is a billing system that connects your rooftop solar panels to the main electricity grid. When your solar panels produce electricity:
- You first use it for your own needs (lights, fans, AC, fridge).
- If you produce extra, it gets sent to the grid.
- If your solar doesn’t produce enough (like at night), you can draw power back from the grid.
At the end of the month, your bill is calculated on the “net” electricity consumption (total used – total exported).
Think of it like a “bank account” for electricity. You deposit extra solar power during the day, and you withdraw it when needed at night.
2. How Does Net Metering Work in India?
In India, the government actively promotes solar adoption through subsidies and net metering policies. Here’s how it works step by step:
- Install Solar Panels on Your Rooftop
Panels capture sunlight and convert it into DC electricity. - Convert DC to AC Using an Inverter
Since our appliances and the grid use AC, the inverter converts solar DC power into usable AC power. - Connect to the Grid via Bi-Directional Meter
A special “net meter” is installed that can record both imported (from grid) and exported (to grid) electricity. - Monthly Billing Process
- If your consumption > solar generation → You pay the difference.
- If your solar generation > consumption → You earn credits that roll over or adjust in future bills.
For example:
- Solar generated = 400 units
- Consumed = 300 units
- Exported = 100 units (credited to your account)
3. Why Net Metering Matters in India
India is a country where electricity demand is skyrocketing and prices are going up every year. Net metering makes solar more attractive because it ensures no energy goes to waste.
Key benefits for Indian households & businesses:
- Lower Electricity Bills: Use solar in the day, offset bills with credits at night.
- Earn From Surplus Power: Sell extra power back to the grid.
- Government Subsidy Support: Central & state policies encourage rooftop solar.
- Energy Independence: Less dependence on power cuts & rising tariffs.
- Eco-Friendly: Contribute to India’s renewable energy targets.
4. Net Metering Policy in India (2025 Update)
The Indian Ministry of Power & MNRE (Ministry of New & Renewable Energy) have standardised net metering policies for easier adoption.
- Eligibility: Available for rooftop solar installations (residential, commercial, industrial).
- Capacity: Usually allowed up to 500 kW (varies by state).
- Billing Cycle: Monthly or bi-monthly, credits roll over up to a year.
- Tariff Benefits: Exported units are adjusted against imported units, reducing the bill.
Some states even allow gross metering (where you sell all energy at fixed tariffs), but net metering is usually better for households.
5. How Net Metering Saves You Money
Let’s take a real-life example.
- Monthly Consumption: 500 units
- Rooftop Solar Generation: 450 units
- Exported to Grid: 100 units
Without solar: Bill = ₹3,000 (approx @₹6/unit)
With solar net metering: Bill = only 50 units → ₹300
That’s nearly 90% savings every month. Over 20–25 years (solar panel lifespan), the savings can reach lakhs of rupees.
6. Challenges and Misconceptions About Net Metering
While net metering is beneficial, many people have doubts:
- “Does the DISCOM really give credit?” → Yes, credits are adjusted as per policy.
- “What if I produce too much energy?” → Extra credits may carry forward, or you may get compensated.
- “Is the process complicated?” → With the right installer like Yamira Solar, the entire subsidy + net metering setup is handled smoothly.
7. The Future of Net Metering in India
India aims for 500 GW renewable energy by 2030, and rooftop solar + net metering will be a big part of it. As electricity costs rise, solar plus net metering will move from “optional” to “essential” for most households.
8. Why Choose Yamira Solar for Net Metering Solutions?
Yamira Solar doesn’t just install panels — we provide end-to-end solutions:
✅ MNRE-approved subsidy support
✅ Hassle-free net metering application
✅ High-efficiency solar panels
✅ 25 years of warranty & service support
✅ Expert consultation for homes, businesses & farms
We ensure your investment in solar + net metering is smooth, reliable, and maximises your savings.
Conclusion
Net metering is not just a policy — it’s a smart financial decision. It allows you to harness free sunlight, reduce bills, and even earn from your rooftop.
With government subsidies, advanced technology, and Yamira Solar by your side, there’s no better time than now to switch to solar.
👉 Ready to save on your electricity bills?
📌 Visit www.yamira.in or DM us today for Free Consultation.
FAQs About Net Metering in India
Yes, most states support net metering, though policies and capacity limits may differ.
Typically 1–3 months, depending on DISCOM approvals and paperwork.
Yes, if your solar generation matches or exceeds your usage, your bill can be reduced to almost zero.
They roll over month-to-month, and in some states, unused credits are settled annually.
No. Since the grid acts as your “battery,” you only need batteries if you want backup during power cuts.