Net metering — meaning, how solar export credit works, and key caveats
Tariffs & billing · 8 min read · Updated 2026-04-21
TL;DR
Net metering credits exported solar units against imported units over a settlement period. Rules vary by state/DISCOM. The core optimisation is increasing self-consumption and verifying export credit with meter data.
What is net metering?
A bidirectional meter measures import (grid → building) and export (solar → grid). Billing adjusts import minus export per policy, often month-wise with carry-forward rules.
Net metering vs gross metering
- —Net: export offsets your import units (effective savings close to your tariff).
- —Gross: all solar export is bought at a fixed rate; you buy all consumption at tariff.
Operational tips (what actually improves savings)
- —Shift flexible loads to daytime (pumps, HVAC pre-cooling) to increase self-consumption.
- —Track solar vs grid share and verify settlement on the bill.
- —Monitor demand (MD) and PF if on commercial tariffs.
Frequently asked questions
Does net metering mean free electricity?
No. It reduces your billed import if you generate solar. You still pay fixed/demand charges and any net import.
Can net metering work with DG backup?
Yes, but metering and changeover must be correct so DG does not back-feed the grid. Monitoring helps verify the flows.
Do rules vary by state?
Yes. Settlement, caps, and buyback rates differ by DISCOM and state policy.