Net metering, explained step by step

Net metering is the single mechanism that makes rooftop and small commercial solar financially viable, but the way it actually works day-to-day is rarely explained beyond 'you get credit for extra power.'

Once your system is commissioned, the DISCOM replaces your existing meter with a bi-directional net meter. This meter separately tracks two numbers: units you import from the grid (when your system isn't producing enough, like at night) and units you export to the grid (when your system produces more than you're using, typically midday).

At the end of each billing cycle, the DISCOM calculates the net of these two numbers. If you imported more than you exported, you're billed for the difference at your normal tariff. If you exported more than you imported, that surplus is typically carried forward as a credit against future bills, rather than paid out in cash — though the exact carry-forward rules and any annual settlement policy vary slightly by DISCOM, and we walk every customer through MPPKVVCL's current rules specifically before commissioning.

A practical implication: net metering rewards systems sized close to your actual consumption pattern, not oversized 'as large as the roof allows' installations. A system that regularly exports far more than it imports is generating credits that may not be fully monetised depending on your DISCOM's settlement policy, whereas a well-sized system captures nearly all its value directly against your own usage.

This is why our site survey always starts with your last 12 months of bills rather than just your roof area — sizing to your actual load, plus a reasonable margin for future consumption growth (an EV, an air conditioner, a new room), gets the best return from net metering rather than the largest possible system.