- Under the Electricity (Rights of Consumers) Rules as amended in 2021, net metering is allowed up to 500 kW or the sanctioned load, whichever is lower; above that, net billing or gross metering applies
- Your state regulator sets the detailed rules: settlement period, rate for surplus units, banking and charges
- Time-of-day tariffs make daytime solar hours cheaper and evening peaks dearer, which favours self-consumption
- A draft amendment of March 2026 proposes net-metering charges above 5 kW and storage for systems above 500 kW; it was a draft when this guide was checked
- Approvals typically run: application, technical feasibility, agreement, installation, inspection, meter, synchronisation
Three ways a solar plant can connect
| Arrangement | How it works | Best for |
|---|---|---|
| Net metering | One bidirectional meter. Exports offset imports unit for unit within the settlement period; surplus is paid at a rate set by the regulator or carried forward. | Homes and small to mid C&I plants that consume most of their output |
| Net billing (net feed-in) | Imports are billed at your tariff; exports are credited at a separate, usually lower, feed-in rate. | Larger plants where the regulator prefers to price exports separately |
| Gross metering | All generation is exported and paid at a feed-in tariff; all consumption is billed separately. | Plants built mainly to sell power |
Behind-the-meter self-consumption, with no export at all, is a fourth option. Where the plant is sized below your daytime load, almost every unit is used on site and the export arrangement matters less.
The national framework: the 500 kW rule
The Electricity (Rights of Consumers) Rules, 2020, as amended in 2021, made net metering available to prosumers for systems up to 500 kW or the sanctioned load, whichever is lower. Systems above that can be connected under net billing or gross metering. The rules also set timelines for DISCOMs to process connections, and later amendments simplified the process for small rooftop systems.
Within that framework each State Electricity Regulatory Commission writes its own regulations: the settlement period (monthly or annual), the rate paid for surplus units, banking, the charges payable and the paperwork. Always read your own state's current regulations; in Assam that is the Assam Electricity Regulatory Commission and APDCL's procedures.
Time-of-day tariffs: why daytime solar is worth more
The 2023 amendment to the consumer rules introduced time-of-day (ToD) tariffs, first for commercial and industrial consumers and then for most others as smart meters roll out. During the solar hours the tariff is lower than normal; during the evening peak it is higher. For a solar owner that means:
- Units you self-consume during the day still save money, though the saving per unit depends on your daytime rate.
- Shifting flexible loads (pumping, chilling, batch processes, charging) into the solar hours increases savings.
- Storage becomes more attractive where evening peak rates are high (see battery storage with solar).
The draft 2026 amendment: what is proposed
On 12 March 2026 the Ministry of Power published a draft amendment to the consumer rules for comment until 11 April 2026, with a proposed start of 1 October 2026. Among the proposals reported:
- Where a state has no net-metering rules of its own, net metering up to 500 kW or the sanctioned load, whichever is lower.
- State commissions may levy net-metering charges on systems above 5 kW, reflecting network and storage costs; small residential systems would be spared.
- Renewable installations above 500 kW may need energy storage.
- Demand response, wider ToD tariffs, faster connections and automatic review of abnormal bills.
Step by step: getting a net-metered connection
- ApplicationApply to your DISCOM (online in most states) with the plant capacity, sanctioned load and site details.
- Technical feasibilityThe DISCOM checks the transformer and feeder can take the plant; limits on the share of transformer capacity apply.
- AgreementSign the net-metering or connection agreement and pay the fees.
- InstallationYour EPC installs the plant to the approved design, with the protections the DISCOM requires (anti-islanding inverter, isolators, earthing).
- InspectionThe DISCOM, and the Electrical Inspector (CEIG) where the voltage or capacity requires it, inspects the installation.
- Meter and synchronisationThe bidirectional or generation meter is fixed and tested, and the plant is synchronised with the grid.
We handle net-metering and CEIG paperwork as part of every CAPEX project. Ask us what your state requires.
Get a free solar quoteFrequently asked questions
What is the net-metering limit in India?
What is the difference between net metering and net billing?
Are there new net-metering rules in 2026?
How long does net-metering approval take?
Sources
- Mercom India: Net metering approved for rooftop solar up to 500 kW
- Mercom India: Government proposes amendments to Electricity (Rights of Consumers) Rules, March 2026
- RESI India: Draft Electricity (Rights of Consumers) Amendment Rules, 2026
This guide explains public policy in plain language for planning purposes. Rules, rates and deadlines change: confirm the current position with the notifying authority, your DISCOM and your tax adviser before you commit. Last checked 11 Oct 2026.
About the authors. Arrays Ingenieria is an ex-servicemen-led solar EPC and installation & commissioning company working Pan-India, from Assam's tea estates to industrial rooftops. Our story · Our projects
