Net Metering in India 2026 — Complete State-Wise Guide
Net metering rules changed significantly across Indian states in 2025-2026. Karnataka introduced Virtual Net Metering, Maharashtra expanded limits to 5 MW, and the draft National Electricity Policy 2026 signals a shift toward storage-integrated solar. Here's the latest guide.
How Net Metering Works (Quick Recap)
- Your solar panels generate electricity
- You use what you need — excess flows back to the DISCOM grid
- Your meter runs backward — units credited to your account
- Monthly bill: You pay only for NET units (imports minus exports)
Example: Monthly consumption 400 units. Solar generates 350 units. You pay for only 50 units instead of 400 — 87.5% bill reduction.
Big Changes in Net Metering (2025-2026)
Karnataka — Most Progressive (July 2025)
- Renamed system as DSPV (Distributed Solar PV)
- Introduced Virtual Net Metering (VNM): Housing societies, institutions can share one solar plant's output across multiple consumer accounts — minimum 5 kW
- Group Net Metering (GNM) also available
- Export rate: ₹3.57/unit — one of India's best rates
- Apply: BESCOM portal (bescom.org)
Maharashtra — Expanded to 5 MW
- MERC enabled net-metered capacities up to 5 MW for specific C&I and public sector consumers
- Group net metering and Virtual Net Metering available for housing societies
- Residential: Net metering available for systems up to 10 kW typically
- MSEDCL area: Apply at mahadiscom.in
Delhi — Best for Consumers
- Free net meter installation by BSES/Tata Power Delhi
- Export credited at consumption tariff rate
- Additional ₹2/unit generation incentive for 5 years (DERC)
- No capacity restriction for residential consumers
Kerala — Becoming Restrictive
- Draft proposal to restrict residential net metering to ≤3 kW
- KSEB facing financial pressure from net metering losses
- Commercial consumers largely unaffected
- Apply at KSEB portal before any new restrictions are notified
Gujarat — Strong Policy
- Net metering up to 1 MW for residential and commercial
- Export at consumption tariff rate
- PGVCL/UGVCL/DGVCL — apply at your local DISCOM portal
Odisha — Battery-Friendly Update
- OERC formally included hybrid inverters in net metering framework
- Battery storage can now be integrated with net-metered solar systems
- Progressive step for energy independence
Net Metering Limits by State
| State | Residential Limit | Commercial Limit | Export Rate |
|---|---|---|---|
| Karnataka | Up to 500 kW | Up to 500 kW | ₹3.57/unit |
| Maharashtra | Up to 10 kW typical | Up to 5 MW | Consumption tariff |
| Gujarat | Up to 1 MW | Up to 1 MW | Consumption tariff |
| Delhi | No restriction | No restriction | Consumption tariff + ₹2/unit incentive |
| Tamil Nadu | Up to 1 MW | Up to 1 MW | ₹2.25/unit |
| Rajasthan | Up to 1 MW | Up to 1 MW | Consumption tariff |
| UP | Up to 500 kW | Up to 500 kW | Consumption tariff |
| Kerala | Up to 5 kW (proposed) | Up to 500 kW | Consumption tariff |
How to Apply for Net Metering
- Install solar through MNRE-approved installer
- Installer submits net metering application to DISCOM on your behalf (or you apply via DISCOM portal)
- DISCOM inspection within 30 working days (legal requirement)
- Bidirectional meter installed by DISCOM
- Net metering activated — check first bill to confirm credits
DISCOM Delays — How to Fight Back
- DISCOMs are legally required to connect within 30 days under the Electricity Rights of Consumers Rules
- If delayed: File a complaint on the PM Surya Ghar portal → "Grievance" section
- Escalate to your State Electricity Regulatory Commission (SERC) if DISCOM is unresponsive
- National Consumer Helpline: 1800-11-4000
Virtual Net Metering — Great for Apartments
Available in Karnataka and Maharashtra, Virtual Net Metering allows a housing society to install one large solar plant on the terrace and distribute the generated units proportionally to individual flats' electricity accounts. This means individual flat owners benefit even without their own dedicated solar panels — a game-changer for urban India.
Draft National Electricity Policy 2026 — What's Changing
The draft NEP 2026 signals a future shift: for new consumers with systems above 5 kW, net metering may be replaced by gross metering (sell all generation at a fixed feed-in tariff) or storage-integrated systems. Existing net metering consumers will be grandfathered — so install now to lock in net metering benefits before policy changes.