Net Metering vs Gross Metering by State: MSEDCL, UPPCL, BESCOM & TANGEDCO Compared

Net metering, gross metering, and net billing are the three models — we cover what each means in our general explainer. What that piece can’t tell you is which one applies to your specific system size, because that is set state by state, DISCOM by DISCOM, and revised often. Four major DISCOMs below show just how differently this plays out in practice — treat them as illustrative examples of the range, not a substitute for confirming your own state’s current rule.

Maharashtra (MSEDCL): systems up to 10kW get simplified, fast-tracked net metering approval and are exempt from the new Grid Support Charge. Above 10kW, MERC’s MYT Order 75 (2025) introduced a Grid Support Charge on solar generation by net-metering consumers — reported at roughly ₹1.40/unit (HT) to ₹1.88/unit (LT) in FY2025-26 and rising each year to FY2029-30 — which went live once the state’s rooftop solar capacity crossed 5,000 MW in February 2026. That is a genuinely unusual structural feature: the deal for larger net-metered systems got less generous as state-wide adoption crossed a threshold, not because of anything the individual consumer did. The strictest banking rules — slot-wise banking, monthly only, with unused credits settled at the regulated surplus rate instead of retail — apply to commercial and industrial net-metering consumers; standard residential consumers are reported to be exempt from the slot-wise restrictions, so confirm your own banking terms with MSEDCL. For surplus electricity, MERC has fixed a purchase rate of ₹2.82/kWh from 1 April 2026 under both net metering and net billing — well below typical retail tariffs.

Uttar Pradesh (UPPCL): the official UPNEDA rooftop solar portal confirms net metering (not gross) is the standard framework, with system size capped at 100% of the consumer’s sanctioned connected load — residential systems in practice mostly fall in the 1–10kW range this implies. The settlement period runs the state financial year, 1 April to 31 March. What a year-end surplus is worth is where sources differ: the UPNEDA FAQ states ₹2 per unit, while other recent reports cite a regulator-set rate linked to the average power purchase cost, in the ₹3–4 range. Either way it is below typical retail rates, which is the general pattern across every state here — so confirm the current-year figure with UPPCL before using it in a payback calculation.

Karnataka (BESCOM and the state’s other five DISCOMs): the picture changed during 2026. KERC’s July 2025 order — valid to 30 June 2026 — rebranded rooftop solar as Distributed Solar PV (DSPV) and enabled virtual and group net metering. It has since been replaced by KERC’s Grid-Interactive Distributed Solar PV Plants Regulations, 2026. A June 2026 draft proposed a 500kW net-metering ceiling and mandatory battery storage for systems above 10kW; the final regulations are reported to have raised the ceiling to 1MW and dropped the storage mandate. We found only one secondary report on the final text, so treat the 1MW figure as reported rather than confirmed and check the exact ceiling and settlement terms with BESCOM or KERC before sizing. Virtual net metering is reported to require a minimum 5kW plant and smart meters at both ends, with surplus credited at 75% of KERC’s generic tariff.

Tamil Nadu (TANGEDCO, whose distribution business now operates as TNPDCL after the 2024 restructuring): capacity eligibility is tiered by consumer class under the TNERC Net Metering Regulations (2013, as amended) — residential systems up to 10kW, LT commercial up to 500kW, and HT industrial/commercial up to 1MW. Settlement nets monthly, with any cumulative year-end surplus paid at an avoided-cost rate that has been reported in the roughly ₹2.25–3.60/unit range depending on consumer category and the order in force — confirm the current figure directly rather than treating any single number here as fixed.

The pattern across all four: nearly every state now uses tiered capacity bands (simpler, faster net metering for smaller residential systems; more paperwork, gross metering, or extra charges as you scale up), and banking/settlement terms for unused exported units are consistently less generous than a simple full-retail-value assumption — monthly rather than annual netting is becoming more common, and year-end buyback rates typically land well below what you pay to import a unit. If a vendor’s payback projection assumes your entire exported surplus is worth full retail tariff indefinitely, that assumption is usually the weakest link in their math, not a neutral fact. Confirm your specific state’s current capacity band and settlement rate with your DISCOM or State Electricity Regulatory Commission before sizing a system for maximum export — these rules are being actively revised in most states through 2025–26, and our own subsidy-by-state pages cover the separate question of subsidy amounts. We last re-checked these rules on 4 October 2026 and corrected this article where newer reports superseded what we first published — treat it as a snapshot, not a standing rule.