waaree december

Explained: Net-metering

Rooftop Solar

Reading Time: 4 minutes

Net metering is a billing system that allows solar system owners to sell excess electricity to the utility company. 


In this article, we’ll explain how net-metering works, the benefits it provides, and how it can save you money on your electric bill.

What is net metering in the solar system?

Net metering is a system that allows solar panel owners to sell their excess electricity back to the grid. This can be a great way to offset your energy costs and it’s also good for the environment.

How does net metering work? 

A single bidirectional energy sensor is used to calculate net metering. It is located at the point where energy is imported from the grid and energy is exported from the grid-interactive rooftop system of a consumer.

When your solar panels produce more electricity than you need, the excess is sent back to the grid. Your utility company then credits you for the power, which can be used to offset your energy costs.

In some cases, you may even be able to make money from net metering. If your utility company offers a net metering program, you may be able to sell your excess electricity back to the grid at a higher rate than what you would pay for it.

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What are the benefits of net metering?

There are many benefits of net metering, including:

1. Net metering can help you save money on your electricity bills.

2. Net metering can help you become more energy independent.

3. Net metering can help you reduce your carbon footprint.

Difference between Solar Net-metering, Gross-Metering, & Feed in Tariff

When it comes to solar energy, there are three main types of net-metering: solar net-metering, gross-metering, and Feed in Tariff. Here’s a quick explanation of each:

Solar net-metering is when you offset the electricity you use from the grid with the solar electricity your system produces. Any excess solar electricity your system produces is sent back to the grid, and you receive a credit on your utility bill for that electricity.

Gross-metering is similar to solar net-metering, except that you don’t receive a credit for any excess solar electricity your system produces. Instead, that electricity is sold to your utility at their going rate.

In the feed-in tariff regime, the exported power is compensated at a different tariff called a feed-in tariff, which is low compared to your utility tariff.  You use solar power for self-consumption at your  utility tariff.

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Net metering policy in India

Net metering is a policy in India that allows for the installation of rooftop solar PV systems and other renewable energy sources to be grid-connected. With net metering, the consumer is only billed for the “net” amount of electricity they consume from the grid – that is, the difference between the electricity they generate from their renewable source, and the electricity they consume from the grid. 

This policy provides a significant financial incentive for consumers to install rooftop solar PV systems, as it effectively reduces their electricity bill. In addition, net metering also helps to support the growth of renewable energy in India by providing a market for small-scale renewable energy generation.

The most recent amendments allow net metering to be permitted to the consumer for loads above 500 kW, or the sanctioned load, depending on which is lower. Gross metering will also be permitted for loads exceeding 500 kW. Prosumers may use gross metering to sell solar energy to DISCOM, instead of using net metering. As per tariff regulation, the Commission would determine the generic tariff for gross-metering.

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Also there is a possibility that state regulatory commissions could introduce time-of the-day tariffs, where consumers are incentivized into installing energy storage to store the solar energy and feed it to the grid during peak times. This could allow the grid to manage the demand response.


If you’re considering solar panels for your home, net metering is a great option to consider. It’s good for the environment and can help you save money on your energy costs.

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