UPCL Solar Net Metering Guide for UP Industry (2026)

Direct Answer: Can UP Industries Get Net Metering in 2026?

The bottom line is that most industrial consumers in Uttar Pradesh cannot access true net metering under the current UPERC (Rooftop Solar PV Grid Interactive System Gross/Net Metering) Regulations, 2019, as amended through the Third Amendment notified on June 3, 2025. True net metering — where import and export are netted out through a single bi-directional meter — is restricted to metered agriculture consumers under LMV-5 and metered residential/domestic consumers under LMV-1. Industrial and commercial consumers must instead use the Net Billing / Net Feed-in arrangement, which is available to all consumer categories.

In short, if you run a factory in UP and want rooftop solar, you will be on a net billing (also called net feed-in) arrangement, not traditional net metering. Under net billing, your solar generation is measured separately, and surplus electricity exported to the grid is compensated at the Solar Injection Compensation (SIC) rate, which is based on the weighted average tariff of large-scale solar projects (5 MW and above) from competitive bidding in the last financial year, plus a 25 percent incentive. If no such bidding occurred, the last applicable gross metering tariff applies.

This means UP factories need to focus on maximizing self-consumption rather than banking surplus generation, because the export compensation rate (approximately ₹3.00 to ₹3.60 per unit based on APPC rates) is significantly lower than the industrial grid tariff (₹6.10 to ₹7.70 per kVAh for HV-2 consumers).

Key Takeaways

• Industrial consumers in UP use Net Billing / Net Feed-in, not true net metering
• Rooftop solar capacity cannot exceed 100 percent of sanctioned load or contracted demand
• Export compensation is at the Solar Injection Compensation rate (APPC-based, approximately ₹3.00 to ₹3.60 per unit)
• Settlement is monthly — no annual banking benefit for industrial consumers
• HT industrial tariffs (HV-2) for FY 2026-27 range from ₹6.10 to ₹7.70 per kVAh by voltage level
• A check meter is mandatory for rooftop solar systems above 50 kWp
• The UPERC Third Amendment (June 2025) introduced the SIC mechanism replacing the earlier gross metering tariff for exports
• Tariffs have been unchanged for seven consecutive years (FY 2026-27 marks the seventh year with no hike)

For a broader understanding of how UP compares to other states, see our net metering policy India guide and our overview of commercial and industrial solar.

Verified Snapshot: UP Rooftop Solar for Industry (FY 2026-27)

Understanding the Three Rooftop Solar Arrangements in UP

UPERC regulations provide three distinct arrangements for rooftop solar, and understanding which one applies to your factory is critical.

Net Metering

Net metering is the arrangement most people think of when they hear "solar net metering." Under this scheme, a single bi-directional meter nets out the electricity you import from the grid and the surplus electricity you export. At the end of each billing period, you pay only for the net consumption. To summarize, this is the most beneficial arrangement because export is valued at the same rate as import.

However, in UP, net metering is available only to:

• Metered agriculture consumers under LMV-5 category
• Metered residential/domestic consumers under LMV-1 category
• Government and private educational institutions under LMV-4A, LMV-4B, and HV-1 categories (added via the Second Amendment, November 2023)

Industrial consumers are not eligible for this arrangement.

Gross Metering

Under gross metering, all the electricity generated by your rooftop solar system is injected into the grid. You purchase all your consumption from the grid at normal tariffs. The DISCOM pays you for your total generation at a rate prescribed by the Commission. This arrangement is available to all consumer categories but is rarely optimal for industrial consumers because the purchase rate (APPC or SIC) is much lower than the industrial tariff.

Net Billing / Net Feed-in

This is the arrangement that applies to industrial and commercial consumers in UP. Under net billing, your rooftop solar generation is consumed first for self-use. Any surplus electricity exported to the grid is compensated at the SIC rate. Your import from the grid is billed at the normal applicable tariff. The key difference from net metering is that export and import are not netted out — they are measured and settled separately.

The bottom line is that for UP factories, net billing is the only available rooftop solar arrangement, and the economics depend heavily on your self-consumption ratio.

Capacity Limits and Sanctioned Load Rules

Under UPERC RSPV Regulations, 2019, Regulation 5.1, the maximum peak capacity of a grid-connected rooftop solar PV system cannot exceed 100 percent of the sanctioned load, connected load, or contracted demand of the consumer. This means if your factory has a sanctioned load of 500 kW, you can install up to 500 kWp of rooftop solar.

Additionally, the installed capacity shall conform to the provisions relating to connected load or contracted demand permissible under the UPERC (Electricity Supply Code) Regulations, 2005 and subsequent amendments. The minimum installation capacity is 1 kWp.

The Distribution Transformer (DT) capacity allocation was originally set at 15 percent but was increased to 25 percent vide UPERC Order dated June 29, 2016. This means the cumulative rooftop solar capacity connected to a particular DT cannot exceed 25 percent of the DT's rated capacity.

For larger industrial installations, a check meter is mandatory for systems with rated capacity above 50 kWp, per Regulation 9.5. The charges for testing, installation, and maintenance of the check meter are borne by the eligible consumer, while the Distribution Licensee owns the check meter.

If you are exploring larger solar deployments beyond rooftop limits, see our guide on open access solar India and group captive solar India.

FY 2026-27 HT Industrial Tariffs in UP

UPERC approved the FY 2026-27 tariff order on July 2, 2026 (Petition Nos. 2316/2025 through 2315/2025), and the tariffs became effective approximately seven days after publication. For the seventh consecutive year, tariffs were retained at existing levels with no increase, as an accumulated regulatory surplus of ₹11,602.24 crore as of April 1, 2026, eliminated the need for a hike.

HV-2: Large and Heavy Power (Urban Schedule)

HV-1: Non-Industrial Bulk Load

Rural Schedule (HV-2)

Consumers getting supply up to 11 kV under the Rural Schedule receive a 7.5 percent rebate on the base rate for 11 kV consumers under the urban schedule. No ToD rates are applicable for this category.

The Average Billing Rate (ABR) approved for FY 2026-27 is ₹6.36 per unit overall. Category-specific ABRs include ₹9.86 per unit for HV-1 (Non-Industrial Bulk) and ₹7.97 per unit for HV-2 (Large and Heavy Power).

This means a factory consuming power at 11 kV pays ₹7.70 per kVAh for energy plus ₹380 per kVA per month in demand charges. If that same factory exports surplus solar at the SIC rate of approximately ₹3.00 to ₹3.60 per unit, the gap between import and export rates is approximately ₹4.10 to ₹4.70 per unit — making self-consumption the key driver of solar economics in UP.

For detailed ROI calculations, see our solar IRR calculation methodology India and solar panel ROI payback period India guides.

Time-of-Day (ToD) Tariff Structure

The existing ToD tariff structure for industrial and commercial consumers remains unchanged for FY 2026-27. Understanding ToD is critical for optimizing solar savings because solar generation peaks during daytime hours that often coincide with rebate periods.

Summer Months (April to September)

Winter Months (October to March)

In short, during summer months, the 15 percent rebate from 7:00 AM to 4:00 PM aligns well with peak solar generation hours, enhancing the value of self-consumed solar power. During winter, the surcharge from 5:00 PM to 7:00 PM falls outside solar generation hours, so factories with evening peaks will see higher grid costs during that window.

Seasonal tariff provisions for sugar mills, rice mills, ice factories, and cold storage units also remain unchanged.

Solar Injection Compensation (SIC) Explained

The UPERC Third Amendment to the RSPV Regulations, 2019, notified on June 3, 2025, and effective from July 5, 2025, introduced the Solar Injection Compensation mechanism under Regulation 10.3(ii). This replaced the earlier gross metering tariff for surplus electricity exported by rooftop solar consumers.

How SIC is Calculated

The SIC rate equals the weighted average tariff of large-scale solar projects (5 MW and above) secured through competitive bidding in the last financial year, plus a 25 percent incentive. If no 5 MW+ competitive bidding occurred in the last financial year, the last applicable gross metering tariff is used instead.

This means the export compensation rate is tied to utility-scale solar tariffs discovered through competitive bidding, which have been declining nationally. The 25 percent incentive provides a modest premium to encourage rooftop solar adoption.

Practical Impact for Industry

For an industrial consumer, the SIC rate (approximately ₹3.00 to ₹3.60 per unit based on current APPC ranges) is substantially lower than the HV-2 energy charge of ₹6.10 to ₹7.70 per kVAh. To summarize, every unit of solar power you self-consume saves you ₹6.10 to ₹7.70, while every unit you export earns only approximately ₹3.00 to ₹3.60. The gap is approximately ₹3.00 to ₹4.70 per unit.

This means factories should size their rooftop solar systems to match their daytime load profile as closely as possible, minimizing exports and maximizing self-consumption. Oversizing a system relative to daytime demand will result in exporting surplus at a rate roughly half the import tariff.

For alternative solar models that may offer better economics, explore our RESCO OPEX solar model India guide.

Settlement Rules and Billing Mechanics

Under the UPERC RSPV Regulations, 2019, the energy accounting and settlement procedure for net billing / net feed-in consumers operates as follows:

1. Monthly billing cycle: The DISCOM bills you each month for your net grid consumption (import minus any adjustments) at the applicable industrial tariff.
2. Export measurement: Surplus solar electricity exported to the grid is measured separately and compensated at the SIC rate.
3. No banking benefit: Unlike net metering (where credits can be carried forward), net billing does not allow carrying forward export credits across billing periods. Each month's export is settled within that month's billing cycle.
4. Renewable Purchase Obligation (RPO): Per Regulation 12.2, the total quantum of solar electricity generated under net billing / net feed-in by an eligible consumer who is not an obligated entity qualifies towards the RPO of the Distribution Licensee in whose area the consumer is located.

The bottom line is that monthly settlement with no banking means factories cannot "bank" summer surplus to offset winter consumption. This makes load-matching even more critical.

Application Process: Step by Step

The rooftop solar application process in UP involves coordination between the consumer, an empanelled vendor, and the local DISCOM subdivision. Here is the step-by-step process:

Step 1: Install Solar System Through UPNEDA-Empanelled Vendor

UPNEDA (Uttar Pradesh New and Renewable Energy Development Agency) coordinates vendor empanelment across all five DISCOMs. Your solar system must be installed by an empanelled vendor. For help finding a provider, see our solar EPC company India and solar provider India guides.

Step 2: Submit Net Metering Application to Local DISCOM Subdivision

After installation, submit a net metering (or net billing) application to your local DISCOM subdivision office. The five UP DISCOMs and their service areas are:

Step 3: DISCOM Site Inspection

The DISCOM conducts a site inspection, typically within 7 to 15 days of application submission. The inspection verifies system compliance with technical standards, sanctioned load conformity, and DT capacity availability.

Step 4: Bi-Directional Meter Installation

After inspection approval, the DISCOM installs a bi-directional smart meter at their cost. For systems above 50 kWp, a check meter is also installed (at the consumer's cost for testing/installation/maintenance).

Step 5: Commissioning and Net Billing Activation

Once the meter is installed, the system is commissioned and net billing begins. In eastern UP (PuVVNL territory), meter installation can take 60 to 90 days post-commissioning due to meter availability and staffing constraints. Plan for this delay in your project timeline and follow up with the PuVVNL metering department at 30-day intervals after the commissioning inspection.

Common Errors and Pitfalls

1. Assuming Net Metering is Available for Industry

The most common error is assuming that industrial consumers can access true net metering. Many solar vendors incorrectly use "net metering" as a catch-all term. In UP, industrial consumers are on net billing / net feed-in, which has different economics. This means your savings model must account for the SIC export rate, not the full import tariff rate.

2. Oversizing the Solar System

Because export compensation is approximately half the import tariff, oversizing your system relative to daytime load results in exporting at a low rate. The optimal system size matches your daytime consumption profile, not your total rooftop area.

3. Ignoring ToD Alignment

Factories that operate primarily during daytime hours (7 AM to 4 PM in summer) benefit from both solar self-consumption and the 15 percent ToD rebate. Night-shift factories get less benefit from the ToD rebate alignment but still save on base-rate energy charges.

4. Not Planning for PuVVNL Delays

If your factory is in eastern UP, the 60 to 90 day meter installation delay can impact your project commissioning timeline and financial model. Build this into your ROI calculations.

5. Missing the Check Meter Requirement

For systems above 50 kWp, the check meter is mandatory and the consumer bears the cost of testing, installation, and maintenance. Factor this into your project budget.

To summarize, the key to a successful industrial rooftop solar project in UP is accurate sizing, understanding the net billing economics, and planning for DISCOM-specific timelines.

Frequently Asked Questions

Can industrial consumers in UP get true net metering?

No. Under UPERC RSPV Regulations, 2019 (as amended), true net metering is available only to metered agriculture consumers (LMV-5) and metered residential/domestic consumers (LMV-1), plus government and educational institutions (LMV-4A, LMV-4B, HV-1). Industrial and commercial consumers must use the Net Billing / Net Feed-in arrangement, where exports are compensated at the Solar Injection Compensation rate rather than the full import tariff.

What is the maximum rooftop solar capacity I can install in UP?

The maximum peak capacity cannot exceed 100 percent of your sanctioned load, connected load, or contracted demand. For example, if your factory has a sanctioned load of 500 kW, you can install up to 500 kWp of rooftop solar. Additionally, the cumulative solar capacity on your Distribution Transformer cannot exceed 25 percent of the DT's rated capacity.

What rate will I get for surplus solar exported to the grid?

Surplus electricity is compensated at the Solar Injection Compensation (SIC) rate, which equals the weighted average tariff of large-scale solar projects (5 MW and above) from competitive bidding in the last financial year, plus a 25 percent incentive. Based on current APPC rates, this is approximately ₹3.00 to ₹3.60 per unit. If no competitive bidding occurred, the last applicable gross metering tariff is used.

How is settlement done for industrial rooftop solar in UP?

Settlement is monthly. Each billing period, your grid import is billed at the applicable industrial tariff, and your solar export is compensated at the SIC rate. There is no banking of credits across billing periods — each month is settled independently.

What are the FY 2026-27 HT industrial tariff rates in UP?

For HV-2 (Large and Heavy Power) consumers under the urban schedule, energy charges range from ₹6.10 per kVAh (above 132 kV) to ₹7.70 per kVAh (up to 11 kV), with demand charges from ₹270 to ₹380 per kVA per month. Tariffs have been unchanged for seven consecutive years as of FY 2026-27.

Is a check meter required for my industrial rooftop solar system?

Yes, if your system's rated capacity exceeds 50 kWp, a check meter is mandatory under UPERC RSPV Regulations, 2019, Regulation 9.5. The consumer bears the cost of testing, installation, and maintenance, while the Distribution Licensee owns the check meter.

Can I use a third-party-owned rooftop solar system?

Yes. UPERC regulations allow third-party owners to install rooftop solar under gross metering or net metering arrangements. For third-party leased rooftops in a group of consumers, the capacity is cumulative of the prescribed limits for each eligible consumer in the group. However, industrial consumers using net billing should verify third-party ownership treatment with their specific DISCOM.

How long does the net billing application process take?

The typical timeline is 7 to 15 days for DISCOM site inspection after application, followed by bi-directional meter installation. However, in PuVVNL territory (eastern UP), meter installation can take 60 to 90 days post-commissioning due to meter availability and staffing constraints. Plan accordingly and follow up with your DISCOM at regular intervals.

Primary Sources

1. UPERC RSPV Regulations, 2019 (including Third Amendment, June 2025) — UPERC Notified Documents: https://www.uperc.org/Notified_User.aspx
2. UPERC Third Amendment details — TeamLease Regtech: https://www.teamleaseregtech.com/updates/article/44522/uperc-rooftop-solar-pv-grid-interactive-system-gross-net-metering-regu/
3. UPPCL Tariff Order FY 2026-27 — UPERC: https://www.uperc.org/App_File/UPPCLTariffOrder-pdf72202630517PM.pdf
4. UPPCL Public Notice FY 2026-27 (Rate Schedule) — UPPCL: https://www.uppcl.org/site/writereaddata/siteContent/202607061409355940Press%20English_FY%202026-27.pdf
5. UPERC Tariff Order summary (FY 2026-27) — Power Peak Digest: https://powerpeakdigest.com/uperc-retains-fy27-power-tariffs-raises-subsidy-and-expands-ev-benefits/
6. UPERC Consultation Paper on Net Metering (November 2023) — UPERC: https://www.uperc.org/App_File/ConsultationPaper-Netmetering-pdf1011202360610AM.pdf
7. UPERC Press Release on Second Amendment (November 2023) — UPERC: https://www.uperc.org/App_File/PRESSRELEASE-pdf1128202393657AM.pdf
8. UPERC RSPV Draft Regulations 2019 and Statement of Reasons — UPERC: https://uperc.org/App_File/UPERCRSPVDraftRegulations2019&SORMerged-pdf116201872120PM.pdf
9. UPPCL Tariff Details page — UPPCL: https://www.uppcl.org/uppcl/en/article/tariff-details
10. Invest UP — Renewable Energy Sector — Government of UP: https://invest.up.gov.in/renewable-energy-sector/
11. No power tariff hike in UP for seventh straight year — Hindustan Times: https://www.hindustantimes.com/cities/lucknow-news/no-power-tariff-hike-in-up-for-seventh-straight-year-101783018529454.html
12. Uttar Pradesh Retains Retail Power Tariffs for FY 2026-27 — Mercom India: https://www.mercomindia.com/uttar-pradesh-retains-retail-power-tariffs-for-fy-2026-27

Regulatory status last checked: July 14, 2026. All tariff rates and regulatory provisions are based on the UPERC Tariff Order dated July 2, 2026, and UPERC RSPV Regulations, 2019 (Third Amendment notified June 3, 2025). Verify current rates with your specific DISCOM before finalizing project financials.