Net Metering Arrangements
The four regulatory frameworks governing solar grid interconnection, financial settlement, and multi-premise energy distribution under RERC 2025.
Net Metering (NM)
How the Net Metering Framework Operates
Net Metering is the standard and most widely utilized framework for domestic rooftop solar installations. Under this arrangement, the renewable energy system is physically interconnected to the consumer's internal electrical wiring (behind the primary utility meter). When the solar panels generate electricity during the day, that power is first prioritized to run the appliances within the consumer's premises.
Only the excess electricity—the power generated that the consumer does not immediately use—is exported to the DISCOM's grid. To track this two-way flow of electricity, the DISCOM installs a specialized "Bi-directional Net Meter" that continuously records both the imported grid energy and the exported solar energy.
Commercial Settlement & Rules
| Parameter | Settlement Rule |
|---|---|
| Billing Cycle Adjustment | At the end of each billing cycle, the units of electricity you exported are subtracted from the units you imported on a strict 1:1 basis. You are only billed for the net difference. |
| Domestic Surplus Compensation | If a domestic consumer exports more energy than they import over the entire financial year, the DISCOM purchases that net surplus. The rate is the weighted average tariff of large-scale solar (≥5MW) from the previous financial year, plus a 25% premium. Paid via bank transfer by the first month of the next FY. |
| Non-Domestic Surplus Rules | For commercial and industrial users, the rules are stricter. Any net surplus remaining at the end of the billing cycle simply lapses. The DISCOM does not provide financial compensation for unconsumed commercial solar exports under this specific framework. |
| Financial Exemptions | To incentivize adoption, self-owned Net Metering systems are granted full exemption from standard utility fees, including wheeling charges, banking charges, cross-subsidy surcharges (CSS), and additional surcharges. |
A consumer active under the Net Metering framework cannot migrate to Net Billing, GNM, or VNM without formally terminating their existing connection agreement. Net Billing prosumers are strictly prohibited from availing VNM or GNM frameworks.