The net metering policy makes solar energy more attractive and affordable for users. It not only brings down the energy cost drastically, but also helps create small power generation units in almost every nook and corner of the country. Here are some of the benefits of net metering policy:
What Net Metering does is that it gives customers an opportunity to generate clean and efficient electricity. During sunlight hours, most solar customers produce more than they can consume – this surplus is exported to the grid reducing electricity bills.
1. Value addition to DISCOMs: One of the biggest advantages of Net Metering is that it helps trim peak load demand during the day and reduces load shedding. Further it helps State DISCOMS reduce their T&C wheeling losses.
2. Value addition to end-users: Net Metering helps corporates, industrial establishments and educational research institutes save money on electricity bills. The money saved can be invested into in their existing business or can be used to improve educational infrastructure in universities and schools.
In Net Metering, the grid acts as a huge ‘bank’ and ‘stores’ your extra solar power for times when you don’t have enough. This eliminates the need for an expensive battery bank. A small battery backup system should be sufficient for power outages.
The major components you need for a grid-tied net metering system are solar modules, that produce power and an inverter that converts the DC power from the solar panels to the standard AC power produced by the utility. Both these components require little maintenance because there are no moving parts. Modules have a long warranty and are manufactured from a semiconductor material that is usually protected by a tempered glass front.
Net metering records the energy generated and sent to the grid and consumed from the grid, providing vital data. Your electricity bill is the net difference of the two, accounting for any time of use plans you might select and other charges.
As solar energy systems are connected to the state’s distribution system, the demand for electricity generated by traditional methods will reduce – thus preserving the environment.
Major challenge with net metering policy in India is that:
While many states in India have created net metering policies, the implementation has almost been universally slow and there are arbitrary constraints and limits. For example, some states don't allow net-metering for HT power consumers i.e. large off-takers of power and in most states, there is a cap on the size of the solar plant that can be availed under net metering.
Many industries have lots of idle space on roofs which can be used for solar plants. But very few do so because of several issues, one of them being unfriendly net-metering rules. Rooftop solar sector has not really taken off mainly due to the poor implementation of net metering policy.
Despite these challenges, SSK Green Max has helped 150+ corporates in India in their solar journey - making us India’s leading Solar Company.
State Level Net Metering Data
States
| Year of release of Net Metering policies |
Gross / Net Metering |
Specifications on capacity |
Specifications for grid integration (electricity or power) |
Range allowed |
Max. capacity
w.r.t sanctioned load |
Limitations on transformer capacity |
Export of electricity allowed when compared to consumption |
Billing period for settlement |
Compensation period for surplus |
Maharashtra |
2015 |
Net |
1 kW–1 MW |
100% |
40% |
Above 100% |
Monthly |
Yearly |
Uttar Pradesh* |
2019 |
Both |
1 kW–2 MW |
100% |
25% |
Above 100% |
Monthly |
Yearly |
Rajasthan |
2015 |
Net |
1 kW–1 MW |
80% |
30% |
Above 100% |
Monthly |
Yearly |
Karnataka |
2016 |
Both |
1 kW–1 MW |
100% |
80% |
Above 100% |
Monthly |
Monthly |
Haryana |
2014 |
Both |
1 kW–1 MW |
100% |
30 % for LT and 15% for HT |
90% |
Monthly |
Yearly |
Tamil Nadu |
2019 |
Net |
Consumers under Low Tension category except Hut and Agricultural category
of tariff – Not sure |
100% |
90% |
90% |
Bi-monthly |
Yearly |
Delhi |
2014 |
Net |
1 kW – NA; for group
/ virtual metering
5 kW – 5 MW |
100% |
20% |
Above 100% |
Monthly |
Yearly |
Telangana |
2016 |
Both |
1 kW–1 MW |
Residential: 100%
Others: 80% |
80% |
Above 100% |
Monthly |
Half-yearly |
Gujarat |
2016 |
Both |
1 kW–1 MW |
Residential- Above 100%; Non- residential 50 %
(for initial two years) |
65% |
Above 100% |
Monthly |
Yearly |
Andhra Pradesh |
2015 |
Both |
1 kW–1 MW |
100% |
80 % |
Above 100% |
Monthly |
Quarterly |
West Bengal |
2013 |
Net |
5 kW–not specified |
NA |
NA |
90% |
Monthly |
Yearly |
UTs –
Andaman & Nicobar, Chandigarh, Dadar and Nagar Haveli, Daman & Diu, Lakshadweep, Puducherry
| 2019
| Both |
NA–500
kWp;
for group/ virtual net metering 5 kWp–NA |
100% |
75% |
Above 100% |
Monthly |
Yearly |
Madhya Pradesh |
2015 |
Net |
NA–1 MW |
100% |
30%, as per amendment in 2017 |
Above 100% |
Monthly |
Yearly |
Punjab |
2015 |
Net |
1 kW–1 MW |
80% |
30% |
90% |
Monthly |
Yearly |
Jammu and Kashmir |
2015 |
Net |
1 kW–1 MW |
50% |
20% |
90% |
Monthly |
Yearly |
Orissa |
Amended in 2018 |
Net |
Up to sanctioned load |
100% |
75% |
90% |
Monthly |
Yearly |
Kerala |
2014 |
Net |
1 kW–1 MW |
NA |
80% |
Above 100% |
Monthly |
Yearly |
Assam |
2015 |
Both |
1kW–1 MW |
80% |
20% |
90% |
Monthly |
Yearly |
Jharkhand |
2015 |
Both |
1 kW–2 MW |
100% |
100% |
Above 100% |
Monthly |
Yearly |
Year of release of Net Metering policies
2015
Specifications on capacity
Range allowed
1 kW–1 MW
Max. capacity w.r.t sanctioned load
100%
Limitations on transformer capacity
40%
Specifications for grid integration (electricity or power)
Export of electricity allowed when compared to consumption
Above 100%
Billing period for settlement
Monthly
Compensation period for surplus
Yearly
Year of release of Net Metering policies
2019
Gross / Net Metering
Both
Specifications on capacity
Range allowed
1 kW–2 MW
Max. capacity w.r.t sanctioned load
100%
Limitations on transformer capacity
25%
Specifications for grid integration (electricity or power)
Export of electricity allowed when compared to consumption
Above 100%
Billing period for settlement
Monthly
Compensation period for surplus
Yearly
Year of release of Net Metering policies
2015
Specifications on capacity
Range allowed
1 kW–1 MW
Max. capacity w.r.t sanctioned load
80%
Limitations on transformer capacity
30%
Specifications for grid integration (electricity or power)
Export of electricity allowed when compared to consumption
Above 100%
Billing period for settlement
Monthly
Compensation period for surplus
Yearly
Year of release of Net Metering policies
2016
Gross / Net Metering
Both
Specifications on capacity
Range allowed
1 kW–1 MW
Max. capacity w.r.t sanctioned load
100%
Limitations on transformer capacity
80%
Specifications for grid integration (electricity or power)
Export of electricity allowed when compared to consumption
Above 100%
Billing period for settlement
Monthly
Compensation period for surplus
Monthly
Year of release of Net Metering policies
2014
Gross / Net Metering
Both
Specifications on capacity
Range allowed
1 kW–1 MW
Max. capacity w.r.t sanctioned load
100%
Limitations on transformer capacity
30% for LT and 15% for HT
Specifications for grid integration (electricity or power)
Export of electricity allowed when compared to consumption
90%
Billing period for settlement
Monthly
Compensation period for surplus
Yearly
Year of release of Net Metering policies
2019
Specifications on capacity
Range allowed
Consumers under Low Tension category except Hut and Agricultural category of tariff – Not sure
Max. capacity w.r.t sanctioned load
100%
Limitations on transformer capacity
90%
Specifications for grid integration (electricity or power)
Export of electricity allowed when compared to consumption
90%
Billing period for settlement
Bi-monthly
Compensation period for surplus
Yearly
Year of release of Net Metering policies
2014
Specifications on capacity
Range allowed
1 kW – NA; for group / virtual metering 5 kW – 5 MW
Max. capacity w.r.t sanctioned load
100%
Limitations on transformer capacity
20%
Specifications for grid integration (electricity or power)
Export of electricity allowed when compared to consumption
Above 100%
Billing period for settlement
Monthly
Compensation period for surplus
Yearly
Year of release of Net Metering policies
2016
Gross / Net Metering
Both
Specifications on capacity
Range allowed
1 kW–1 MW
Max. capacity w.r.t sanctioned load
Residential: 100% Others: 80%
Limitations on transformer capacity
80%
Specifications for grid integration (electricity or power)
Export of electricity allowed when compared to consumption
Above 100%
Billing period for settlement
Monthly
Compensation period for surplus
Half-yearly
Year of release of Net Metering policies
2016
Gross / Net Metering
Both
Specifications on capacity
Range allowed
1 kW–1 MW
Max. capacity w.r.t sanctioned load
Residential- Above 100%; Non- residential 50 % (for initial two years)
Limitations on transformer capacity
65%
Specifications for grid integration (electricity or power)
Export of electricity allowed when compared to consumption
Above 100%
Billing period for settlement
Monthly
Compensation period for surplus
Yearly
Year of release of Net Metering policies
2015
Gross / Net Metering
Both
Specifications on capacity
Range allowed
1 kW–1 MW
Max. capacity w.r.t sanctioned load
100%
Limitations on transformer capacity
80 %
Specifications for grid integration (electricity or power)
Export of electricity allowed when compared to consumption
Above 100%
Billing period for settlement
Monthly
Compensation period for surplus
Quarterly
Year of release of Net Metering policies
2013
Specifications on capacity
Range allowed
5 kW–not specified
Max. capacity w.r.t sanctioned load
NA
Limitations on transformer capacity
NA
Specifications for grid integration (electricity or power)
Export of electricity allowed when compared to consumption
90%
Billing period for settlement
Monthly
Compensation period for surplus
Yearly
Year of release of Net Metering policies
2019
Gross / Net Metering
Both
Specifications on capacity
Range allowed
NA–500 kWp; for group/ virtual net metering 5 kWp–NA
Max. capacity w.r.t sanctioned load
100%
Limitations on transformer capacity
75%
Specifications for grid integration (electricity or power)
Export of electricity allowed when compared to consumption
Above 100%
Billing period for settlement
Monthly
Compensation period for surplus
Yearly
Year of release of Net Metering policies
2015
Specifications on capacity
Range allowed
NA–1 MW
Max. capacity w.r.t sanctioned load
100%
Limitations on transformer capacity
30%, as per amendment in 2017
Specifications for grid integration (electricity or power)
Export of electricity allowed when compared to consumption
Above 100%
Billing period for settlement
Monthly
Compensation period for surplus
Yearly
Year of release of Net Metering policies
2015
Specifications on capacity
Range allowed
1 kW–1 MW
Max. capacity w.r.t sanctioned load
80%
Limitations on transformer capacity
30%
Specifications for grid integration (electricity or power)
Export of electricity allowed when compared to consumption
90%
Billing period for settlement
Monthly
Compensation period for surplus
Yearly
Year of release of Net Metering policies
2015
Specifications on capacity
Range allowed
1 kW–1 MW
Max. capacity w.r.t sanctioned load
50%
Limitations on transformer capacity
20%
Specifications for grid integration (electricity or power)
Export of electricity allowed when compared to consumption
90%
Billing period for settlement
Monthly
Compensation period for surplus
Yearly
Year of release of Net Metering policies
Amended in 2018
Specifications on capacity
Range allowed
Up to sanctioned load
Max. capacity w.r.t sanctioned load
100%
Limitations on transformer capacity
75%
Specifications for grid integration (electricity or power)
Export of electricity allowed when compared to consumption
90%
Billing period for settlement
Monthly
Compensation period for surplus
Yearly
Year of release of Net Metering policies
2014
Specifications on capacity
Range allowed
1 kW–1 MW
Max. capacity w.r.t sanctioned load
NA
Limitations on transformer capacity
80%
Specifications for grid integration (electricity or power)
Export of electricity allowed when compared to consumption
Above 100%
Billing period for settlement
Monthly
Compensation period for surplus
Yearly
Year of release of Net Metering policies
2015
Gross / Net Metering
Both
Specifications on capacity
Range allowed
1 kW–1 MW
Max. capacity w.r.t sanctioned load
80%
Limitations on transformer capacity
20%
Specifications for grid integration (electricity or power)
Export of electricity allowed when compared to consumption
90%
Billing period for settlement
Monthly
Compensation period for surplus
Yearly
Year of release of Net Metering policies
2015
Gross / Net Metering
Both
Specifications on capacity
Range allowed
1kw –3 MW
Max. capacity w.r.t sanctioned load
100%
Limitations on transformer capacity
100%
Specifications for grid integration (electricity or power)
Export of electricity allowed when compared to consumption
Above 100%
Billing period for settlement
Monthly
Compensation period for surplus
Yearly
* The applicable rate will be 30 % of the weighted APPC rate at which the DISCOM has purchased power from the ground mounted solar PV plant up to 5 MW capacity
Source: Centre for Energy Finance, Individual DISCOM websites
Disclaimer: The information presented above is for educational purposes only. All the data provided in the table above are approximate values derived from third party sources, research articles or on ground experience and SSK Green Max would take no responsibility or have any obligation over the correctness of data. The regulatory policies get updated from time to time and it is highly encouraged that you head over to individual DISCOM sites to refer the latest changes.
Acronyms Used:
APPC |
Average Power Purchase Cost |