Net Metering Policy in India 2025: State-Wise Guide

Key Takeaways

• Net metering allows industrial consumers to export surplus solar electricity to the grid and receive credits on their electricity bill.
• Most Indian states permit net metering for systems up to 500 kW–1 MW capacity, though policies vary significantly by state.
• Industrial facilities in Haryana, Rajasthan, and Delhi can save ₹8–11 per unit through net metering, with payback periods under 3 years.
• The application process typically takes 30–60 days through your local DISCOM, and your solar EPC contractor can handle it for you.
• Recent policy changes in some states have shifted from net metering to gross metering or net billing for larger systems — understanding the difference is critical.

What Is Net Metering and How Does It Work?

Net metering is a billing mechanism that allows solar power producers to export surplus electricity to the grid. When your solar system generates more power than your factory consumes (typically during peak sunshine hours), the excess flows into the grid. Your electricity meter runs backward during this period, giving you credits.

The Three Types of Solar Metering in India

Net metering is the most favorable for industrial consumers because you receive full retail tariff credit (₹8–11/kWh) for every unit exported, rather than a lower feed-in tariff.

State-Wise Net Metering Policies in 2025

Haryana Net Metering Policy

• Eligible capacity: Up to 500 kW for industrial consumers under net metering
• DISCOM: DHBVN (Dakshin Haryana) and UHBVN (Uttar Haryana)
• Metering type: Net metering up to 500 kW; net billing for 500 kW–1 MW
• Credit settlement: Excess units carried forward for 12 months, settled annually at APPC rate
• Application fee: ₹1,000 for systems up to 100 kW; ₹5,000 for 100 kW–1 MW
• Timeline: 30–45 days from application to meter installation
• Key benefit: Haryana's high industrial tariff (₹8.5–10/kWh) makes net metering extremely attractive

Sun Wave Technologies has completed 100+ net metering installations with DHBVN and UHBVN, and handles the complete application process for all our EPC and RESCO projects.

Rajasthan Net Metering Policy

• Eligible capacity: Up to 1 MW for industrial consumers
• DISCOM: JVVNL, AVVNL, JdVVNL
• Metering type: Net metering up to 1 MW
• Credit settlement: Excess units adjusted in the next billing cycle
• Special provision: Rajasthan allows net metering for ground-mount solar on owned land within the same DISCOM area
• Timeline: 30–45 days
• Key benefit: Rajasthan has the best solar irradiance in India (5.5–6.0 kWh/m²/day) and favorable policies

Delhi Net Metering Policy

• Eligible capacity: Up to 1 MW (recently expanded)
• DISCOM: BSES Rajdhani, BSES Yamuna, Tata Power DDL
• Metering type: Net metering with annual settlement
• Credit settlement: Excess credits settled at APPC rate at year-end
• Generation-Based Incentive (GBI): ₹2/kWh for first 3 years (residential), varying for commercial
• Timeline: 30–60 days
• Key benefit: Delhi's extremely high industrial tariff (₹9–11/kWh) delivers the best ROI

Gujarat Net Metering Policy

• Eligible capacity: Up to 1 MW for industrial consumers
• DISCOM: UGVCL, PGVCL, MGVCL, DGVCL
• Metering type: Net metering with monthly billing adjustments
• Credit settlement: Excess units credited to next month, annual settlement at APPC rate
• Special note: Gujarat was the first state to adopt a comprehensive solar policy and has a well-established net metering framework
• Timeline: 30–45 days

Maharashtra Net Metering Policy

• Eligible capacity: Up to 1 MW
• DISCOM: MSEDCL, Tata Power, Adani Electricity
• Metering type: Net metering for systems up to the sanctioned load
• Credit settlement: Monthly adjustment with annual settlement
• Key change: Maharashtra has been discussing a shift to net billing for larger systems — check latest MERC orders
• Timeline: 45–60 days
• Key benefit: Very high industrial tariffs in Mumbai and Pune (₹10–13/kWh) make solar extremely attractive

Uttar Pradesh Net Metering Policy

• Eligible capacity: Up to 1 MW (increased from earlier 500 kW limit)
• DISCOM: UPPCL subsidiaries (DVVNL, MVVNL, PVVNL, KESCO)
• Metering type: Net metering with annual settlement
• Credit settlement: Excess units adjusted in subsequent billing cycles
• Timeline: 45–60 days
• Key benefit: Rapidly growing industrial base with increasing solar adoption

How to Apply for Net Metering: Step-by-Step Process

Step 1: Feasibility Assessment

Before applying, ensure:

• Your sanctioned load is sufficient (solar capacity typically limited to 80–100% of sanctioned load)
• Your roof or land can accommodate the desired system size
• You don't have pending electricity dues
• Your electrical infrastructure (transformer, panels) can handle bidirectional flow

Step 2: Prepare Required Documents

Step 3: Submit Application to DISCOM

Most DISCOMs now accept online applications. Your solar EPC contractor should handle this process. Key steps:

1. Submit application with all documents
2. DISCOM conducts a technical feasibility study (7–15 days)
3. Receive approval letter with technical conditions
4. Install the solar system as per approved specifications
5. Apply for meter installation and inspection

Step 4: DISCOM Inspection and Meter Installation

• DISCOM engineer inspects the installation for safety and compliance
• Bidirectional (import-export) meter is installed
• System is synchronized with the grid
• Net metering agreement is signed

Step 5: Go Live

Once the meter is installed and the agreement is signed, your solar system starts generating credits. The first adjusted bill typically arrives within 1–2 billing cycles.

Net Metering Savings Calculator

Here's how net metering impacts your electricity costs for a 300 kW factory in Haryana:

Without Solar

• Monthly consumption: 75,000 units
• Grid tariff: ₹9.5/kWh
• Monthly bill: ₹7,12,500

With 300 kW Solar + Net Metering

• Solar generation: 40,000 units/month
• Self-consumed: 32,000 units (80%)
• Exported to grid: 8,000 units (20%)
• Grid units consumed: 43,000 units
• Net metering credit: 8,000 units

Monthly bill with solar:

Monthly savings: ₹3,80,000 (53% reduction) Annual savings: ₹45.6 lakhs

Common Net Metering Challenges and Solutions

Challenge 1: DISCOM Delays

Some DISCOMs take 60–90 days instead of the mandated 30 days. Solution: Work with an experienced EPC company like Sun Wave Technologies that has established relationships with DISCOM officials and can expedite approvals.

Challenge 2: Transformer Capacity Issues

Your local distribution transformer may not have capacity for bidirectional flow. Solution: Get a transformer capacity assessment before designing your system. You may need to limit export or upgrade the transformer (cost: ₹5–15 lakhs).

Challenge 3: Annual Settlement Loss

Excess credits settled annually at the Average Power Purchase Cost (APPC), which is ₹3–4/kWh — much lower than your grid tariff of ₹9–11/kWh. Solution: Size your system to minimize annual excess. Aim for 80–90% self-consumption ratio.

Challenge 4: Policy Uncertainty

States periodically revise net metering policies. Solution: Sign a net metering agreement that locks in your terms for 25 years. Most states grandfather existing installations under the policy active at commissioning time.

Net Metering vs. Open Access Solar

For large industrial consumers (connected load above 1 MW), open access solar may be a better alternative to net metering:

Frequently Asked Questions

Can I get net metering for an industrial unit in Faridabad?

Yes. Faridabad falls under DHBVN (Dakshin Haryana Bijli Vitran Nigam), which supports net metering for industrial consumers up to 500 kW. For systems between 500 kW and 1 MW, net billing applies. Sun Wave Technologies has completed numerous net metering installations in Faridabad's industrial areas including Sector 6, Sector 24, and the Faridabad-Ballabgarh industrial belt.

How much does a net meter cost?

The bidirectional net meter typically costs ₹3,000–8,000 depending on the type (single-phase vs. three-phase) and is usually provided by the DISCOM. Some DISCOMs charge a meter installation fee of ₹1,000–5,000. Your EPC contractor handles the procurement and installation.

What happens to excess solar credits at year-end?

In most states, excess credits accumulated over the year are settled at the Average Power Purchase Cost (APPC) rate, which is typically ₹3–4/kWh. This is significantly lower than the retail tariff. That's why it's important to size your system correctly to maximize self-consumption and minimize year-end excess.

Can I get net metering with a RESCO solar installation?

Yes. Both CAPEX (EPC) and RESCO (OPEX) solar installations are eligible for net metering. In RESCO projects, the developer handles the net metering application and the credits are factored into your PPA rate.

Is net metering available for three-phase industrial connections?

Yes, net metering is available for all types of electrical connections including three-phase industrial connections. In fact, most industrial net metering installations are three-phase. The bidirectional meter must match your connection type (LT or HT).

How long does the net metering approval take in Haryana?

The official timeline is 30 days from application submission. In practice, it takes 30–45 days with DHBVN and UHBVN. Sun Wave Technologies typically completes the entire process within 35–40 days by maintaining direct coordination with DISCOM engineers and ensuring all documentation is complete at the time of submission.