What Rate Do DISCOMs Pay for Surplus Solar? (2026)

At what rate does the government buy surplus solar power in India?

Most DISCOMs do not "buy" your solar power at the retail tariff. Under net metering your exported units offset units you import, and only the surplus left at the end of the settlement period - usually the financial year - is paid, typically at Rs 1.90-3.20 per kWh depending on the state: Rs 2/kWh in Uttar Pradesh, the DISCOM's average power purchase cost (APPC, about Rs 5.16-5.55/kWh in Delhi's policy appendix) in Delhi, Rs 3.11/kWh under Haryana's gross metering route, an auction-linked benchmark in Rajasthan, and nothing at all above the 90% cap in Punjab.

Because surplus is worth far less than the Rs 7-9/kWh retail tariff it displaces, the smart move is to size a rooftop system so very little is left over at settlement time. This guide explains the rules state by state for North India, with the regulation behind each number.

TL;DR: Surplus rooftop solar is settled at year end in most states. UP pays Rs 2/kWh for leftover net metering credits; Delhi pays APPC (roughly Rs 5.2-5.6/kWh in its policy appendix) plus a generation-based incentive; Haryana's net metering credits simply lapse, though gross metering pays a fixed Rs 3.11/kWh for five years; Rajasthan buys domestic surplus at the previous year's competitive-bid solar tariff; Punjab pays nothing above 90% of consumption. Size the system to your consumption, not to the export market.

Last verified: 12 November 2026

How surplus solar settlement works

The three metering arrangements

India's Electricity (Rights of Consumers) Amendment Rules, 2021 recognises three ways a rooftop owner can be settled: net metering, where exported units offset imported units in kWh; net billing (net feed-in), where imports and exports are valued at two different tariffs and settled in money; and gross metering, where the entire generation is sold to the DISCOM at a feed-in tariff. The same amendment allows state commissions to permit net metering for loads up to 500 kW or the sanctioned load, whichever is lower, and requires anything above that to move to net billing or gross metering.

Which arrangement you get, and what any surplus is worth, is decided by your state electricity regulatory commission. The differences are large, as the state table below shows.

Why surplus units are worth less than your tariff

When solar export offsets grid import 1:1 in kWh, each unit saves you the full retail tariff. But the DISCOM buys a surplus unit at its own cost of power - a fraction of the retail tariff - or not at all. That asymmetry is deliberate: it stops consumers from oversizing plants as generating businesses on the net metering route, which is meant to be a self-consumption scheme. It also means the value of a "sold" unit can be 30-70% lower than the value of a self-consumed unit.

State-wise surplus solar payment rates in North India

Other states differ again - Maharashtra, for example, lapses unadjusted credits for many categories. Check your own commission's current regulations before you count on export income; our state-wise net metering guide covers the wider landscape.

Delhi: year-end surplus paid at APPC, plus generation incentive

Delhi is the most generous North Indian state for surplus, but the mechanism has two distinct parts.

Surplus payment. Excess units roll forward month to month and, for any surplus accumulated to the end of the financial year, the DISCOM pays cash at its Average Power Purchase Cost (APPC) as approved by DERC in the tariff order. This is confirmed in BSES's rooftop solar FAQ, which notes the APPC can change every financial year. The Delhi Solar Policy 2023 lists the reference APPC values in its appendix: BYPL Rs 5.16/kWh, BRPL Rs 5.43/kWh, TPDDL Rs 5.55/kWh (2021-22 values - check the latest DERC tariff order for the current figure).

Generation-based incentive (GBI). On top of surplus payment, Delhi pays a GBI on every unit generated, for five years from commissioning: Rs 3/kWh for residential systems up to 3 kW, Rs 2/kWh for residential systems above 3 kW up to 10 kW, Rs 2/kWh for group housing societies and RWAs (up to 500 kW at 10 kW per house) and Rs 1/kWh for commercial and industrial systems in the first 200 MW deployed. The GBI is adjusted against the electricity bill and any excess is paid into the consumer's bank account monthly.

Together, these make Delhi the standout market for well-sized home systems - see our Delhi net metering guide for homes and how the free 400-units subsidy interacts with solar.

Uttar Pradesh: leftover credits paid at Rs 2 per unit

Under the UPERC (Rooftop Solar PV Grid Interactive Systems Gross/Net Metering) Regulations, 2019, as amended (latest amendment notified 3 June 2025), domestic (LMV-1) and agricultural (LMV-5) consumers and listed public institutions get net metering. Exported units offset imports within the billing cycle and carry forward within the settlement period (the financial year). The regulation then states that any electricity credits remaining unadjusted at the end of the settlement period "shall be paid at a Net Metering Rate of Rs 2/kWh by the Distribution Licensee or as notified by the Commission from time to time", and credits reset to zero at the start of each settlement period (UPERC RSPV Regulations 2019, with amendments; UP NEDA's FAQ confirms the Rs 2.0/unit figure).

UP's gross metering / net feed-in route is paid differently: Solar Injection Compensation equal to the weighted-average tariff of all 5 MW-plus solar projects awarded through competitive bidding in the previous financial year, plus a 25% incentive. With recent Indian solar auctions clearing around Rs 2.86-3.07/kWh (SECI Tranche XX tariffs of Rs 2.86-2.87/kWh adopted by CERC in March 2026; PSPCL's April 2026 solar auction at Rs 3.05-3.07/kWh), that formula lands in the low Rs 3 range. Details in our UP net billing guide for industry.

Haryana: leftover net metering units lapse, gross metering pays Rs 3.11

Haryana is the strictest state in the region. Under the HERC (Rooftop Solar Grid Interactive Systems Based on Net Metering/Gross Metering) Regulations, 2021:

• Net metering: solar generation is capped at 90% of the consumer's electricity consumption at the end of the settlement period (the financial year). Excess energy above 90% is not offset against consumption, and unadjusted net credited units "shall lapse at the end of the settlement period and shall not be paid for by the distribution licensee". If the consumer leaves the system, unused credits lapse too.
• Gross metering: every unit injected is paid a fixed Rs 3.11/kWh for five years without escalation - a tariff HERC set deliberately despite competitive solar bids falling below Rs 3/kWh, citing Haryana's high land cost. The Commission reserved the right to re-determine the rate after five years.

In effect, Haryana tells you to size to 90% of consumption and not a unit more. Our DHBVN net metering guide covers the practical process, including the net meter and first-bill charges. Note that HERC floated a draft second amendment in August 2025 proposing to change surplus settlement to 75% of the last discovered SECI tariff; until notified, the 2021 rules above remain operative.

Rajasthan: domestic surplus bought at auction benchmark, net billing adds 25 percent

Under the RERC (Grid Interactive Distributed Renewable Energy Generating Systems) Regulations, 2021:

• Domestic consumers on net metering: electricity exported in excess of imports during a billing period is purchased by the DISCOM at the weighted-average tariff of 5 MW-plus solar projects discovered through competitive bidding in the previous financial year, and adjusted as a credit in the next billing cycle. With recent auctions at about Rs 2.9-3.1/kWh (CERC-adopted SECI tariffs), that is the working range.
• Non-domestic consumers on net metering: net surplus electricity remaining at the end of the billing period lapses, with no payment.
• Net billing: the DISCOM signs a connection agreement at the previous year's competitive-bid tariff plus a 25% incentive, fixed for the agreement's duration; any billing credit left at the end of the settlement period must be paid by 15 May of the next financial year.

Our Rajasthan net metering guide for industry and RRECL net metering rules cover the state's process in depth.

Punjab: no payment above 90 percent of consumption

Under PSERC's net metering regulations, generation from a rooftop solar system must not exceed 90% of the consumer's electricity consumption in a settlement period. Excess generated beyond that 90% ceiling is "treated as inadvertent injection": the DISCOM pays nothing, and it does not carry forward to the next settlement period. Punjab's rules have been amended since, so confirm the treatment in your connection agreement with PSPCL before assuming any export value; our PSPCL net metering guide tracks the current process.

Worked example: what surplus is worth on a 3 kW Delhi home

Assumptions: 3 kW rooftop system in Delhi on BRPL, generating 4.2 kWh per kW per day on average (about 4,600 units a year), household consumption of 4,000 units a year, all generation either self-consumed or exported. The Delhi Solar Policy 2023 is the source for GBI and APPC figures; generation is a stated assumption, not a guarantee.

• Offset value: of the 4,600 units generated, suppose 4,000 are effectively offset against imports at the applicable retail tariff (well above the subsidy threshold, so actual savings depend on your slab) - the bulk of the system's value.
• Surplus at FY end: 600 units paid at BRPL's APPC of Rs 5.43/kWh (2021-22 appendix value) = about Rs 3,258 for the year.
• GBI: 4,600 units x Rs 3/kWh (residential up to 3 kW) = about Rs 13,800 a year, for five years, adjusted against bills first and the excess paid to your bank account.

The same 600 surplus units would earn Rs 1,200 in UP (at Rs 2/kWh) and nothing in Punjab if they breach the 90% cap. That gap is exactly why export income should be treated as a bonus, never a business case.

What changed recently

• 16 July 2026: DERC notified the (Net Metering for Renewable Energy) (Second Amendment) Guidelines, 2026, per the DERC regulations page. Delhi's APPC-based surplus settlement continues under the 2023 policy framework.
• August 2025: HERC issued a draft second amendment to Haryana's rooftop solar regulations proposing surplus settlement at 75% of the last discovered SECI tariff (Mercom India). Draft only - not yet the operative rate.
• 3 June 2025: UPERC's third amendment to the RSPV Regulations 2019 revised the gross metering Solar Injection Compensation formula (weighted-average competitive-bid tariff plus 25%), while the Rs 2/kWh net metering settlement rate stayed unchanged.

Should you oversize a solar plant to sell power to the grid?

Almost never on net metering. The numbers above show surplus is worth a fraction of the retail tariff - or zero, in Haryana and Punjab. Size the plant to your daytime consumption with a modest buffer, not to your roof area. Our guides on how many units 1 kW generates in North Indian cities and sizing a plant for a factory show the arithmetic.

For factories and commercial rooftops where consumption is genuinely large - or where a bigger plant than net metering allows makes sense - the better routes are net billing and open access, or a group captive arrangement. If you are evaluating a C&I rooftop in Delhi NCR, Haryana or UP, talk to Sun Wave about industrial rooftop solar - we size plants for self-consumption and savings, not for export.

Frequently Asked Questions

Do DISCOMs pay for surplus solar units in India?

Sometimes. Most state rules let exported units offset imported units, and only leftover credits at the end of the settlement period (usually the financial year) are settled. UP pays Rs 2/kWh for them, Delhi pays the DISCOM's APPC, Rajasthan buys domestic surplus at an auction-linked tariff - while Haryana and Punjab pay nothing for leftover net metering credits. Check your state commission's regulations before counting on export income.

What is the APPC rate paid for surplus solar in Delhi?

APPC is each DISCOM's average power purchase cost, approved by DERC in the tariff order. The Delhi Solar Policy 2023 appendix lists Rs 5.16/kWh for BYPL, Rs 5.43/kWh for BRPL and Rs 5.55/kWh for TPDDL (2021-22 values); the applicable figure updates each financial year, so confirm the current number in the latest DERC tariff order.

What happens to unused net metering units in Haryana?

They lapse. Under HERC's 2021 regulations, solar generation is capped at 90% of your consumption for the financial year, and unadjusted net credited units at settlement are neither paid for nor carried into the next year. Only the gross metering route pays for exports, at a fixed Rs 3.11/kWh for five years.

How much does UP pay for surplus solar units?

Rs 2/kWh. UPERC's regulations state that electricity credits left unadjusted at the end of the settlement period are paid at the Net Metering Rate of Rs 2/kWh, and credits reset to zero at the start of each year. Gross metering (selling all generation) uses a different formula: the previous year's competitive-bid solar tariff plus 25%.

Does Punjab pay for excess solar generation?

Not above the 90% cap. PSERC's rules treat any generation beyond 90% of your consumption in a settlement period as inadvertent injection: no payment and no carry-forward. Within the 90% cap, exported units offset your imports like ordinary net metering.

Is net metering or gross metering better for surplus power?

For almost every consumer, net metering - because each self-consumed or offset unit saves the full retail tariff, several times what gross metering pays (Rs 3.11/kWh in Haryana). Gross metering only makes sense when you genuinely generate far more than you consume and have no better offtake, for example under a specific scheme. Compare the mechanics in our net metering vs gross metering vs net billing guide.