--- title: Net Metering in India 2026: Rules | Arrays Ingenieria description: Net metering, net billing and gross metering in India in 2026: the 500 kW limit, time-of-day tariffs, the draft 2026 rules and the approval steps. url: https://arraysingenieria.com/net-metering-india/ last_updated: 2026-10-11 source: Arrays Ingenieria (Arrays Ingenieria Pvt. Ltd.) --- Guide · Grid & Regulation # Net Metering in India (2026): Net Billing, Gross Metering, ToD Tariffs and the Draft 2026 Rules How your solar plant connects to the DISCOM and how exported units are paid for: net metering, net billing and gross metering, the 500 kW rule, time-of-day tariffs, the draft 2026 amendments, and the step-by-step approval process. On this page - Three ways a solar plant can connect - The national framework: the 500 kW rule - Time-of-day tariffs: why daytime solar is worth more - The draft 2026 amendment: what is proposed - Step by step: getting a net-metered connection - Frequently asked questions - Sources By the [Arrays Ingenieria engineering team](https://arraysingenieria.com/about/) · Updated 11 Oct 2026 · 3 min read **Key takeaways** - 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 Net metering, net billing and gross metering | 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](https://arraysingenieria.com/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. **Draft, not final** When this guide was checked we had not seen the final notification. If you are planning a plant above 5 kW, and especially above 500 kW, check the final rules and your state's regulations before fixing the design. ## Step by step: getting a net-metered connection - **Application**Apply to your DISCOM (online in most states) with the plant capacity, sanctioned load and site details. - **Technical feasibility**The DISCOM checks the transformer and feeder can take the plant; limits on the share of transformer capacity apply. - **Agreement**Sign the net-metering or connection agreement and pay the fees. - **Installation**Your EPC installs the plant to the approved design, with the protections the DISCOM requires (anti-islanding inverter, isolators, earthing). - **Inspection**The DISCOM, and the Electrical Inspector (CEIG) where the voltage or capacity requires it, inspects the installation. - **Meter and synchronisation**The bidirectional or generation meter is fixed and tested, and the plant is synchronised with the grid. The AC distribution board at the 230 kWp Borpatra Tea Estate plant. We obtained the net-metering and statutory approvals from APDCL for this plant. We handle net-metering and CEIG paperwork as part of every CAPEX project. Ask us what your state requires. [Get a free solar quote](https://arraysingenieria.com/free-solar-quote/) ## Frequently asked questions What is the net-metering limit in India? Under the national consumer rules as amended in 2021, net metering is available up to 500 kW or the sanctioned load, whichever is lower. States set the details. What is the difference between net metering and net billing? Net metering offsets exported units against imported units one for one. Net billing bills imports at your tariff and credits exports at a separate, usually lower, rate. Are there new net-metering rules in 2026? The Ministry of Power published a draft amendment in March 2026 proposing, among other things, net-metering charges above 5 kW and storage for systems above 500 kW. Check whether it has been notified in final form. How long does net-metering approval take? It depends on the state and capacity. The national rules set maximum timelines for DISCOMs; in practice allow several weeks, longer where the Electrical Inspector must inspect. ## Sources - [Mercom India: Net metering approved for rooftop solar up to 500 kW](https://www.mercomindia.com/government-approves-net-metering-rooftop-solar) - [Mercom India: Government proposes amendments to Electricity (Rights of Consumers) Rules, March 2026](https://www.mercomindia.com/government-proposes-amendments-to-electricity-consumer-rights-rules) - [RESI India: Draft Electricity (Rights of Consumers) Amendment Rules, 2026](https://www.resiindia.org/post/draft-electricity-rights-of-consumers-amendment-rules-2026-enabling-mandated-bess-for-500-kw-so) 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](https://arraysingenieria.com/ex-servicemen-led-msme/) · [Our projects](https://arraysingenieria.com/projects/) [CAPEX Solar EPC](https://arraysingenieria.com/capex-solar-epc/)[Rooftop Solar](https://arraysingenieria.com/service-rooftop/) From Our Sites ## Case Studies on This Topic Real plants our veteran-led crews have built, with the scope of work in detail. [Tea Estate · Ground-Mount: **Borpatra (Barpatra) Tea Estate: 230 kWp On-Grid Solar Plant**230 kWp · Borhat, Sivasagar district, AssamRead the case study](https://arraysingenieria.com/project-barpatra-tea-estate-230kw-solar/)[Industrial · Rooftop: **TCPL Greenery Agro, Vaishali: 319 kWp Rooftop Solar**319 kWp · Bhagwanpur, Vaishali district, BiharRead the case study](https://arraysingenieria.com/project-tcpl-vaishali-319kwp-rooftop-solar/) Keep Reading ## Related Guides [Grid & Regulation: **Green Energy Open Access in India: Buy Solar Power from Off-Site Plants from 100 kW**Can't fit enough solar on your roof? Green Energy Open Access lets consumers from 100 kW buy power from a solar plant elsewhere. Eligibility, approvals, charges, banking, and the ISTS waiver phase-out.3 min read · Updated 11 Oct 2026](https://arraysingenieria.com/green-energy-open-access/)[Storage: **Battery Storage with Solar in India (2026): Mandates, Incentives and When It Pays**Storage is becoming part of India's solar story. The two-hour co-located storage advisory for tenders, the viability gap funding for batteries, transmission waivers, the draft rule for large prosumers, and when a battery makes sense for a business.3 min read · Updated 11 Oct 2026](https://arraysingenieria.com/battery-storage-with-solar/)[Installation & Commissioning: **Solar Plant Installation and Commissioning: The Complete Step-by-Step Checklist**What actually happens between the purchase order and the day a solar plant goes live. Every stage of installation and commissioning, the tests that prove the plant is safe, and the documents you should receive at handover.3 min read · Updated 11 Oct 2026](https://arraysingenieria.com/solar-plant-commissioning-checklist/) [All solar guides](https://arraysingenieria.com/insights/)[Government solar schemes](https://arraysingenieria.com/solar-schemes-india/)