Industrial Solar Net Billing: How Surplus Power Settlement Works

Industrial Solar Net Billing:How Surplus Power Settlement Works

Reviewed: August 2026

     

In Maharashtra, commercial and industrial solar installations exceeding sanctioned capacity thresholds (typically above 1 MW or defined DISCOM limits) operate under the Net Billing (Gross Feed-in) framework rather than traditional 1:1 Net Metering. Under Net Billing, all power generated and self-consumed on-site directly displaces retail utility tariffs, while any surplus energy exported to the utility grid is purchased by the DISCOM at the Average Power Purchase Cost (APPC) tariff and credited against your monthly bill.

1 MW+
Net Billing Capacity Slab
APPC Rate
Export Settlement Tariff
100%
Self-Consumption Value
15-Min
Time-of-Day TOD Settlement
Monthly
DISCOM Cash Credit Adjustment

    

Industrial solar facility under net billing framework
COMMERCIAL & INDUSTRIAL SCALE

Dual-tariff energy settlement for large industrial systems.

Energy imported from the grid is billed at your normal retail slab tariff (e.g. ₹9.50/unit), while energy exported to the grid is credited at the DISCOM APPC rate (typically ₹3.00 - ₹3.50/unit). Optimizing system sizing for direct self-consumption maximizes ROI.

BEST SUITED FOR

Industrial facilities with solar plants larger than 1 MW or restricted net-metering allocations.

01 — SELF-USE

Displaces full retail rate (₹9.50/u) instantly

02 — EXPORT

Surplus credited at lower DISCOM APPC tariff

03 — SIZING

System sized strictly to match baseline daytime load

     

Because exported units are compensated at lower APPC rates, engineering under Net Billing requires precision load profiling rather than maximizing panel surface area.

01LOAD MATCHING

Baseline Daytime Sizing

Size the solar plant around your factory minimum daytime operating demand, ensuring 85%+ of generated energy is consumed directly.

02STORAGE INTEGRATION

BESS Arbitrage Layer

Incorporate battery energy storage (BESS) to capture surplus daytime solar energy for evening discharge rather than low-value APPC export.

03METER TELEMETRY

Bi-Directional TOD Logging

Deploy automated 15-minute Time-of-Day telemetry meters that track import and export cycles aligned with DISCOM billing software.

ParameterNet Billing (Gross Feed-in)Net Metering (1:1 Banking)Zero-Export Installation
Capacity LimitAbove 1 MW (or DISCOM cap)Up to 1 MW (DISCOM limits)Unlimited (subject to load)
Imported Energy RateStandard retail slab rateStandard retail slab rateStandard retail slab rate
Exported Energy RateDISCOM APPC rate (~₹3.20/u)1:1 retail credit offset0 export allowed (throttled)
Bi-directional MeterRequired with net billing PPARequired with net meter PPAStandard meter + reverse relay
Best Sizing StrategyMatch baseline daytime loadMatch annual net consumptionMatch peak instantaneous load

Frequently Asked Questions

In a solar rooftop system, solar panels are installed on the roof of any residential, commercial, institutional, or industrial building. This can be of three primary types: (i) Grid Connected Solar Rooftop System (without battery storage), (ii) Solar Rooftop System with battery storage facility (Off-Grid), and (iii) Hybrid Solar Rooftop System (Grid Connected along with Battery Storage backup).
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