Guide · Updated September 2026
Net metering, explained like a bill
The short answer
Net metering means your exported solar units offset the grid units you consume. A bidirectional meter records both flows, your DISCOM bills the net difference, and surplus exports carry forward as credit. This is why a solar home can bring its bill near zero even though panels produce nothing at night.
The billing mechanics
A bidirectional meter records imported units (grid to home) and exported units (solar to grid) separately. The bill charges net imports under your state’s settlement rules. Many states credit surplus annual exports at an average pooled cost rather than retail tariff — which is exactly why sizing close to your consumption beats oversizing.
Day and night
Panels produce nothing at night; the house imports from the grid as always. During the day your consumption runs on solar first and the surplus exports. Over a month, the exports repay the night-time imports — that trade is the entire economic engine of on-grid solar.
What changes state to state
Settlement period (monthly vs annual banking), export credit rates, and per-phase size caps all vary by DISCOM. Some levy small capacity charges on rooftop connections. Before signing, ask your installer to show a sample bill calculation for your DISCOM — not a generic one.
Run your own numbers
Guides give you the rules; the calculator gives you your numbers. One input — your monthly bill.
Open the calculatorFAQ
Do I get money back if I export more than I use?
Usually not in cash. Surplus is carried as credit under your state’s banking rules, and leftover annual surplus is paid at a lower pooled rate or lapses. Right-size the system instead of oversizing.
Does net metering need a new meter?
Yes — a bidirectional (net) meter replaces your existing one. The DISCOM installs it after commissioning, at a modest, itemised cost on its schedule.