Worked example
Generating 400 units/month against 300 units consumed, at a ₹4/unit export rate, earns about ₹400.00/month in export credit for the 100 surplus units.
Calculate your export credit
Net Metering Earnings Calculator
What your exported solar units are worth
Monthly export credit
₹400.00
≈ ₹4,800.00/year
- Units exported
- 100
- Units still imported
- 0
How Net Metering Actually Works
Your bidirectional meter tracks power flowing both ways. During the day, if your panels generate more than your home is using, the surplus flows out to the grid and the meter logs it as an export. In the evening and overnight, when your panels aren't generating, your home draws from the grid as normal and the meter logs an import.
At the end of the billing cycle, your DISCOM nets the two figures against each other. Say your system generates 15 units on a sunny day; your home uses 8 units during the day and 4 more that evening. You've exported 7 units to the grid and later imported 4 back — net for the day, you're 3 units in credit. That credit is valued at your state's export rate, which is why the rate you enter above matters so much.
Net-Metering Policy Varies by State — What to Check
Net-metering rules are set individually by each state's electricity regulator (SERC) and are revised periodically. Rather than publish a state-by-state table that could go stale or be wrong for your specific DISCOM, here are the structural questions worth confirming directly with your installer or DISCOM before you install:
- Gross or net metering? Some states only offer one; a few let larger systems choose.
- What sets the export rate? It may track your retail tariff, a separate "average power purchase cost" (APPC), or a fixed feed-in rate — these can differ substantially.
- How is credit settled? Monthly netting, or annual netting with credit carried forward — and whether unused credit lapses, is banked, or is paid out at year-end.
- Is there a system size cap? Many states limit net-metering eligibility relative to your sanctioned electrical load.
Common Net-Metering Mistakes
- Delaying the application. Units exported before your net meter is commissioned typically aren't credited — apply as soon as installation finishes, not after your first bill arrives.
- Assuming export rate = retail rate. In many states the export rate is set lower than what you pay to buy power, which changes the payback math for a large export-heavy system.
- Not checking the settlement period. Expecting a monthly cash payout when your state only allows annual netting with credit carry-forward, not cash settlement.
- Oversizing purely for export income before confirming the actual export rate — see our panel size calculator and run the numbers with your real rate first.
- Skipping the sanctioned-load check. Finding out after installation that your system exceeds your connection's net-metering eligibility cap.
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Frequently asked questions
What is net metering?
Net metering lets a rooftop solar owner export surplus units back to the grid (when generation exceeds consumption) in exchange for a bill credit, and import units from the grid when consumption exceeds generation — the two are netted against each other, typically over a billing cycle.
Why do I have to enter my own export rate instead of the calculator knowing it?
Net-metering export credit rates are set by each state's electricity regulator and vary significantly — some credit exports at the same retail tariff you pay, others at a lower "average power purchase cost." There is no single national rate, so using your own DISCOM's published rate is the only accurate approach.
Where do I find my DISCOM's net-metering export rate?
It's set out in your state's net-metering regulations, usually published by the state electricity regulatory commission (SERC), and your installer should be able to confirm it as part of your net-metering application.
Does exporting more always mean earning more?
Only if your export rate is close to your retail tariff. In states where export credit is set well below the retail rate, it's often more valuable to size your system closer to your own consumption (self-consumption) than to build a large surplus for export.
Is net-metering credit paid out in cash, or only as a bill credit?
Usually as a bill credit rather than a cash payout — most state regulations bank unused export credit forward to offset future bills, though a few provide for settlement of any credit remaining at year-end. Check your specific state's regulation or ask your installer.
What's the difference between gross metering and net metering?
Under net metering, only your surplus generation (after your home's own use) is exported and credited. Under gross metering, all your generation is exported and credited at a separate rate, while you separately pay for everything you consume from the grid. Which applies — or whether you can choose — depends on your state's regulation and sometimes your system size.
Is there a system size limit for net-metering eligibility?
Many states cap net-metering eligibility relative to your sanctioned electrical load — check this with your DISCOM before finalizing a system size, especially if you're sizing above 100% of your consumption.
What's the most common net-metering mistake?
Delaying the net-metering application after installation. Exported units aren't credited until the application is processed and the meter is commissioned, so any gap between installation and approval is exported for free. Apply as soon as installation is complete.