Net Metering Explained
Turn your electricity meter backwards. Sell excess power to the grid and get credit for night usage.
Visual representation of how Solar Net Metering works: Excess power generated during the day is exported to the grid, earning you credits for night usage.
What is Net Metering?
Net Metering is a billing mechanism that credits solar energy system owners for the electricity they add to the grid. For example, if your rooftop system generates more electricity than your home uses during the day, that excess electricity is sent back to the grid.
At night, when your solar panels are not generating, you draw power from the grid. You are only billed for your "net" energy use (Import - Export).
Billing Formula
- Zero Electricity Bills
- Banking of Power
- Carry Forward Credits
UPERC Regulations 2019
RSPV Grid Interactive Systems Gross / Net Metering Regulations
System Capacity
Eligible consumers can install rooftop solar systems ranging from 1 kWp up to 2 MWp.
Load Limit
The maximum peak capacity of the system shall not exceed 100% of the sanctioned load or connected load of the consumer.
Eligible Categories
Net Metering is available for Residential (LMV-1) and Agricultural (LMV-5) consumers. Other categories may opt for Net Billing/Gross Metering.
Metering Standards
A single bi-directional meter replaces the existing meter. For systems >50 kWp, an additional Check Meter is mandatory.
Exemptions
Rooftop solar systems under these regulations are exempted from wheeling charges and cross-subsidy surcharges.
Vendor Selection
Consumers can install systems through any UPNEDA empanelled vendor. J.S. Enterprises is your trusted partner for this.
Source: UPERC (Rooftop Solar PV Grid Interactive Systems Gross / Net Metering) Regulations, 2019.
Application Process
Online Application
Apply via UPNEDA / Discom portal with required documents.
Feasibility Check
Electricity department checks transformer capacity in your area.
Meter Installation
Old meter is replaced with a bi-directional Net Meter.
Commissioning
System is synced with grid and billing cycle is updated.
Banking of Power
One of the biggest advantages of Net Metering is the "Banking" facility. If you generate more power than you consume in a month, the excess units are not lost. They are "banked" with the electricity department.
These banked units can be used in future months when your generation might be lower (e.g., during monsoon or winter). This cycle typically runs for a financial year (April to March).
Bill Settlement
Your electricity bill will show three key readings:
- Import: Units taken from grid.
- Export: Solar units sent to grid.
- Net: Difference (Import - Export).
You only pay for the Net units. If Net is negative (Export > Import), the specific amount is carried forward to the next month's bill as a credit.
Documents Required
Common Questions
Can I install a system larger than my sanctioned load?
Technically, your solar system capacity is usually capped at your sanctioned load (e.g., if you have 5kW sanctioned load, you can install up to 5kW solar). You may need to increase your sanctioned load first for a larger system.
What happens during a power cut?
For safety reasons (anti-islanding), standard On-Grid systems shut down during a power cut so no electricity is sent back to the grid, protecting linesmen working on repairs. Hybrid inverters can solve this.
Do I get paid for excess power?
In most states including UP, excess units are adjusted against future bills. At the end of the financial year, if there's still a surplus, it may be settled at a specific rate decided by the regulatory commission (though this rate is low, so self-consumption is best).
Want to apply for Net Metering?
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