Residential Net Metering: 1-to-1 Energy Banking for Homeowners

Residential Net Metering:1-to-1 Energy Banking for Homeowners

Reviewed: August 2026

    

Net metering is the billing mechanism that credits residential solar owners for the electricity they export to the grid. With a bi-directional meter installed by your local DISCOM (such as MSEDCL), units generated by your rooftop panels during peak sunlight hours are exported when household demand is low. At night, your home imports grid electricity as normal. At the end of the billing cycle, you pay only for the net difference.

1:1 Ratio
Energy Banking Parity
15 Min
Bi-Directional Recording
March 31
Annual Settlement Date
100% Cap
Sanctioned Load Ceiling
10+
State DISCOM Policies

   

Daytime rooftop solar generation and grid export
PEAK SUNLIGHT (9 AM - 4 PM)

Self-consumption first, automatic grid export second.

Your home appliances draw solar electricity instantly. When generation exceeds consumption, excess power automatically spins the meter backWards, recording export credits on the DISCOM grid register.

BEST SUITED FOR

Households where working family members are away during daytime peak generation hours.

01 — DIRECT DRAW

Household lights and refrigerators run directly on free solar

02 — GRID INJECTION

Surplus energy flows outward through the bi-directional meter

03 — CREDIT LOG

Export register tracks kilowatt-hours added to the local distribution feeder

   

A safe, code-compliant net-metering interconnection relies on three technical safeguards.

01BIDIRECTIONAL METER

Certified Dual-Register Hardware

DISCOM-approved electronic meter records active export and import units separately with tamper logging.

02ANTI-ISLANDING

Grid Safety Disconnect

Inverter disconnects solar injection within 20 milliseconds if utility grid drops, protecting line repair crews.

03SANCTIONED HEADROOM

Connected Load Compliance

System capacity is sized up to 100% of your sanctioned load, ensuring smooth MSEDCL approval.

ParameterResidential Net MeteringCommercial Net BillingGross Metering
Consumer EligibilityResidential & Societies (up to 10 kW+)Commercial & Industrial (>10 kW)Independent Solar Generators
Export Valuation1:1 Unit Offset against retail tariff (₹6-₹12/u)Weighted export rate or APPC (₹3.00-₹3.80/u)PPA Feed-in tariff only
Banking HorizonMonthly rollover until March 31 settlementMonthly billing reconciliationNo banking (instant generation sale)
Battery RequirementNone (Grid functions as virtual storage)Optional for peak rate optimizationNot required

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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