Net Metering in India | Complete Step by Step Guide 2026

You have decided to go solar. You have chosen your system. Your installer has completed the physical installation. And now someone mentions net metering and suddenly the process feels complicated again.

What is net metering exactly? Do you need it? What documents do you need to submit? How long does it take? What happens if your electricity board rejects the application?

This guide answers every single one of those questions. By the end you will understand the net metering process completely and you will know that if you are in Bengaluru or Karnataka, Arush Solar Tech handles every part of this process on your behalf from start to finish.

What Is Net Metering?

Net metering is a billing arrangement between you and your state electricity board that allows your rooftop solar system to feed excess electricity back into the grid in exchange for credits on your electricity bill.

Here is how it works in simple terms:

During the day your solar panels generate electricity. Your home uses what it needs at that moment. Any power your home is not consuming right then, the excess, flows back into the electricity grid through a special bi-directional meter. Your electricity board records how much you exported.

At the end of the billing cycle the board calculates the difference between what you exported and what you imported from the grid. You pay only for the net units, the difference between what came in and what went out. In many cases this results in a bill that is close to zero or even a carry-forward credit to the next month.

Without net metering your solar system still reduces your bill by powering your home during daylight hours. But any excess power your panels generate goes to waste you get no value from it. Net metering captures that value and returns it to you as a bill credit, significantly improving your overall return on investment.

Is Net Metering Mandatory?

Net metering is not mandatory, but it is strongly recommended for any grid-connected or hybrid rooftop solar system.

Without net metering approval your system cannot legally export power to the grid. You can still use your solar power for self-consumption during the day but any excess generation is wasted. For most households self-consumption alone still reduces the electricity bill significantly but net metering maximises the financial return from your investment.

Off grid systems do not require net metering because they operate completely independently from the electricity grid.

Which Electricity Boards Handle Net Metering Across India?

Net metering is governed by the central government's net metering regulations but administered by each state's electricity distribution company. Here are the relevant electricity boards across India's major states:

Karnataka: BESCOM for Bengaluru and surrounding districts. CESC, GESCOM, HESCOM, and MESCOM for other Karnataka districts.

Maharashtra: MSEDCL for most of Maharashtra. BEST for parts of Mumbai.

Tamil Nadu: TANGEDCO across the state.

Andhra Pradesh: APEPDCL and APSPDCL depending on your district.

Telangana: TSSPDCL for Hyderabad and surrounding areas. TSNPDCL for northern Telangana.

Gujarat: DGVCL, MGVCL, PGVCL, and UGVCL depending on your district.

Rajasthan: JVVNL, AVVNL, and JdVVNL depending on your district.

Delhi: BSES Rajdhani, BSES Yamuna, and Tata Power Delhi Distribution.

Kerala: KSEB across the state.

Each electricity board has its own application process, documentation requirements, and processing timelines but the core net metering principle and the documents required are broadly similar across all of them.

Who Is Eligible for Net Metering?

Net metering is available to residential, commercial, and industrial electricity consumers across India subject to the following conditions:

Your rooftop solar system size must not exceed your sanctioned load the total electrical load your electricity connection is approved for.

Your system must be installed by an empanelled solar installer registered with your state's renewable energy development agency or nodal agency.

Your electricity connection must be in good standing no outstanding dues or active disconnection notices.

For most residential customers in Indian cities the sanctioned load is between 3 KW and 10 KW depending on your home size and existing electrical load. Your solar installer will check your sanctioned load during the site survey and confirm eligibility before any work begins.

Documents Required for Net Metering Application

This is the section most homeowners find confusing. Here is a complete document checklist that applies across most Indian electricity boards in 2026:

Documents you provide:

Latest electricity bill, your most recent bill from your electricity board showing your consumer number, service connection number, and sanctioned load. This is the single most important document in the entire application.

Proof of ownership property tax receipt, sale deed, or registered ownership document. If you are a tenant you need the property owner's written permission to install solar and apply for net metering.

Identity proof, Aadhaar card or PAN card of the electricity account holder.

Photograph of the property, a clear external photograph of the building showing the rooftop where panels are installed.

Photograph of the installed system, taken after installation is complete showing the panels on the rooftop, the inverter mounted on the wall, and the overall system setup.

Documents your solar installer provides Arush Solar Tech prepares all of these for you:

Single line diagram, a technical schematic showing how your solar system connects to the grid. Your installer's technical team prepares this.

System specifications document, details of panels, inverter, capacity, and technical parameters.

Inverter test certificate, issued by the inverter manufacturer confirming the inverter meets grid-tie requirements and safety standards.

Net metering application form, filled, signed, and stamped where required.

Installer empanelment certificate, proof that your installer is registered with the relevant state agency.

For commercial customers additional documents:

GST registration certificate Trade license or business registration certificate Letter of authorisation if the applicant is not the property owner or account holder

The Net Metering Process | Step by Step

Here is exactly what happens from the moment you decide to go solar to the day your net meter is activated and you start earning credits:

Step 1 Site Survey: Your solar installer visits your property at no cost. They assess your rooftop, measure available space, check structural integrity, analyse shading, review your electricity bills, confirm your sanctioned load, and design a system that complies with your electricity board's requirements.

For Arush Solar Tech customers in Bengaluru this happens within 2 to 3 working days of your inquiry.

Step 2 System Design and Proposal: Based on the site survey your installer prepares a detailed proposal system size, panel and inverter specifications, expected annual generation, projected bill savings, and total cost including applicable subsidies. You review, ask questions, and approve before any work begins.

Step 3 Pre-Installation Application (where applicable): Some electricity boards require a pre-installation application and approval before physical installation begins. This is more common for commercial installations. For most residential installations in Karnataka the physical installation can proceed before the formal application but this varies by board and your installer will confirm the correct sequence for your location.

Step 4 Physical Installation: Your installer completes the rooftop installation panels, mounting structure, inverter, DC and AC wiring, earthing, and surge protection. For a standard residential system this takes one to two days. The system can generate and self-consume solar power from the moment installation is complete even before net metering is approved.

Step 5 Post-Installation Application Submission: Within a few days of installation completion your installer compiles the complete application package and submits it to the relevant electricity board division office for your area. For Arush Solar Tech customers we submit within 2 to 3 working days of installation completion.

Step 6 Application Acknowledgement: The electricity board acknowledges receipt of the application and assigns a reference number. This is your confirmation that the application is in their system and being processed.

Step 7 Technical Inspection: An electricity board technical officer visits your property to inspect the installed system. They verify that the installation meets technical requirements correct panel placement, proper inverter installation, adequate earthing, and compliance with safety standards.

Your installer should be present during this inspection to answer technical questions. Arush Solar Tech coordinates the inspection appointment and has a technician present for every inspection.

Timeline: Inspection is typically scheduled within 15 to 45 working days of application submission. This varies significantly by electricity board division and current workload.

Step 8 Inspection Clearance: After a successful inspection the electricity board issues clearance and initiates the meter replacement process.

Step 9 Bi-Directional Meter Installation: The electricity board replaces your existing single-direction electricity meter with a bi-directional net meter that records both import from the grid and export to the grid separately. This is done by the electricity board's own team not by your solar installer.

Timeline: Meter replacement typically happens within 7 to 21 working days after inspection clearance.

Step 10 System Activation and Net Metering Live: Once the bi-directional meter is installed your system is officially active for net metering. From this day every unit you export to the grid earns you a credit on your next electricity bill.

Realistic Timelines Across India

The physical installation of your solar system takes one to two days. The net metering approval process is what takes time and it varies significantly across India.

Karnataka - BESCOM: Optimistic: 45 to 60 days from application to meter installation Typical: 60 to 90 days Delayed: 90 to 120 days or more in busy divisions

Maharashtra - MSEDCL: Optimistic: 30 to 45 days Typical: 60 to 90 days Delayed: 90 to 150 days in urban areas with high application volumes

Tamil Nadu - TANGEDCO: Optimistic: 30 to 60 days Typical: 60 to 120 days

Gujarat - DGVCL/MGVCL: Optimistic: 30 to 45 days Typical: 45 to 90 days, Gujarat generally has one of the faster processing times in India

Delhi - BSES/Tata Power: Optimistic: 30 to 45 days Typical: 60 to 90 days

These are estimates based on general experience. Individual timelines vary based on your specific division office, current application volume, and the completeness of your documentation.

The most important thing to understand is that these timelines are controlled by the electricity board not by your installer. A good installer submits a complete and correct application and follows up proactively. They cannot control how quickly the electricity board processes it.

How Net Metering Credits Work on Your Electricity Bill

Once your bi-directional meter is installed your electricity bill changes significantly. You will now see two separate readings:

Import units the units you drew from the electricity grid Export units the units your solar system fed back into the grid

Your bill is calculated on the net difference import minus export. If your export exceeds your import in a billing cycle the excess credit carries forward to your next bill. This carry-forward credit rolls over month to month and is settled at the end of the financial year.

The credit rate per unit varies by state and consumer category. In Karnataka the export credit is calculated at the applicable BESCOM tariff rate for your consumer category. As electricity tariffs increase over time which they have done consistently across all Indian electricity boards your net metering credits become more valuable per unit, further improving your solar return on investment over time.

PM Surya Ghar Muft Bijli Yojana | The Solar Subsidy You Should Not Miss

India's central government subsidy scheme for residential rooftop solar PM Surya Ghar Muft Bijli Yojana is one of the most significant financial incentives for solar in the world. The scheme provides direct subsidy that reduces your net installation cost significantly.

The subsidy is processed through your electricity board as part of the net metering application. Your installer handles the subsidy application simultaneously with the net metering application there is no separate process for you to manage.

Subsidy amounts for residential customers in 2026: Up to 2 KW capacity ₹30,000 per KW Capacity between 2 KW and 3 KW - ₹18,000 per KW for the additional KW Above 3 KW -₹78,000 maximum central subsidy

Several states offer additional state-level subsidies on top of the central scheme. Karnataka, Gujarat, Rajasthan, and others have their own incentive programs. Your installer will confirm what is available in your specific state and location.

The subsidy is available only for grid-connected systems installed through officially empanelled vendors. Arush Solar Tech is an authorised channel partner and handles the complete PM Surya Ghar application for every eligible installation we complete.

Common Reasons for Net Metering Application Delays

If your application is taking longer than expected it is usually due to one of the following:

Incomplete or incorrect documentation A missing document, incorrect consumer number, or unsigned form requires resubmission and restarts the processing clock. This is the most common and most preventable cause of delay. A thorough installer submits a complete application the first time.

System size exceeds sanctioned load If your proposed system is larger than your sanctioned load the electricity board will reject or query the application. A good installer checks your sanctioned load during the site survey and sizes the system accordingly.

Division office backlog High-volume electricity board divisions in major cities sometimes have significant backlogs of net metering applications. Some periods particularly after government subsidy announcements see large spikes in applications that slow processing times.

Inspection scheduling delays In busy divisions technical officers cover large areas and inspection appointments can take longer to schedule than expected.

Inverter compliance issues Inverters must meet specific grid-tie standards and carry the required certifications. Using an inverter that does not meet these standards can cause the application to be queried or rejected.

Arush Solar Tech prevents most of these delays by submitting complete and correctly prepared applications, using only compliant inverters and panels, and following up proactively with the relevant BESCOM division throughout the process.

Frequently Asked Questions About Net Metering in India

Can a tenant apply for net metering? Yes, but you need written permission from the property owner. The net meter is registered to the electricity account which is typically in the property owner's name. Discuss this with your landlord before proceeding.

What happens to my net metering if I move or sell the property? The net meter is attached to the electricity connection and the property, not to you personally. If you sell the property the solar system and net meter transfer with it, which is an increasingly valuable selling point. If you move to a new property you would need a new system and new net metering application for the new property.

Does net metering work during power cuts? No. A standard on grid solar system shuts down automatically during power cuts as a mandatory safety requirement — this protects electricity board linemen working on the grid. A hybrid system with battery backup continues to power your home from stored battery power during cuts independently of the grid.

What if my application gets rejected? Outright rejection is rare when the application is complete and compliant. The most common cause of rejection is a system size that exceeds the sanctioned load. If rejection happens Arush Solar Tech reviews the rejection reason, corrects the issue, and resubmits. We stay with the process until your meter is installed.

Is there a limit on how many units I can export? There is no arbitrary cap on export credits. You earn credits for every unit you export. The practical limit is your system's generation capacity — you can only export what your panels actually generate.

What happens to unused credits at the end of the year? Credit carry-forward rules vary by state. In Karnataka unused credits at the end of the financial year are typically settled at a rate determined by BESCOM — your installer can confirm the current settlement terms for your specific consumer category.

Do I need net metering if I have a hybrid system? Yes, if your hybrid system is grid-connected. Hybrid systems with battery storage are still connected to the grid and can export excess power. Net metering applies and is recommended to capture the full value of your generation.

Does Arush Solar Tech Handle the Entire Net Metering Process?

Yes. Completely. Without exception.

From the moment your installation is confirmed Arush Solar Tech prepares your complete net metering application, compiles all technical documentation, pre-fills all forms, submits to the correct BESCOM division office for your specific area, coordinates the technical inspection visit with our technician present, follows up proactively on processing status, and notifies you when your bi-directional meter is ready for installation.

You provide your electricity bill and proof of property ownership. We handle everything else including the PM Surya Ghar subsidy application where applicable.

This is not an add-on service. It is not an optional extra. It is included in every grid-connected and hybrid installation we complete. We do not hand you a form and wish you good luck. We see the process through from application to activation.

Ready to Start?

Understanding net metering is important. But you do not need to manage it yourself. Arush Solar Tech has been delivering solar projects across Karnataka since 2018 from government camps at Virajpeta Range to Nagarhole National Park to BRT Tiger Reserve to residential rooftops across Bengaluru. We have completed the BESCOM net metering process many times and we know exactly what is required to get it done correctly and efficiently.

Start with a free site survey. No obligation, no pressure, no invoice if you decide not to proceed.

Book your free site survey today. Call +91-9686260065 or WhatsApp Somashekar directly on +91 78993 50511. Or fill in the contact form at arushsolartech.com and we will respond within 2 business hours.

Arush Solar Tech Bengaluru's authorised solar channel partner. Serving Karnataka since 2018.