Net Metering vs Gross Metering
Verdict
Verdict: Net metering is better for almost every self-consuming rooftop owner: your solar offsets units you would have bought at retail tariff, so each unit is worth ₹6–12. Gross metering sells all generation to the DISCOM at a fixed feed-in tariff — usually below retail — which only makes sense when you consume little of what you generate.
Side-by-Side Comparison
| Criterion | Net Metering | Gross Metering |
|---|---|---|
| What happens to generation | Consumed first, surplus exported | All exported to DISCOM |
| Value per unit | Your retail tariff (₹6–12) | Fixed feed-in tariff (usually lower) |
| Meters required | One bidirectional meter | Separate generation + consumption meters |
| Billing | Net of import and export | Buy all, sell all separately |
| Best for | Homes and offices using daytime power | Sites generating far more than they consume |
| Availability in India | Standard for residential rooftop | Applies in specific states/capacities |
Bold green marks the stronger option on that criterion. Figures are typical Indian market values as of 2026 and vary by brand, site, and supplier.
Choose Net Metering If…
- Standard residential and small commercial rooftops
- Any site that consumes a meaningful share of its generation during daylight
- Systems sized around your own consumption (the usual, and usually optimal, approach)
Choose Gross Metering If…
- Where your state or consumer category mandates it above a capacity threshold
- Generation-first installations where on-site consumption is minimal
- When the offered feed-in tariff genuinely exceeds your retail tariff (rare)
Why Self-Consumption Wins
The economics are simple arithmetic. Under net metering, a unit you generate and use immediately saves you the retail tariff — the full ₹6–12 you would otherwise have paid. Under gross metering, that same unit earns you the feed-in tariff, and you still buy your consumption at retail.
This is why system sizing matters: oversizing far beyond consumption pushes you into exporting surplus at lower value, and some states cap or devalue year-end excess credits.
Check Your State’s Rules
Net-metering regulations are state subjects and vary meaningfully: eligible capacity limits, whether capacity is capped at sanctioned load, how long credits bank, and how year-end surplus is settled. These rules change more often than technology does — verify with your DISCOM before finalising system size.
Frequently Asked Questions
- Which is better, net metering or gross metering?
- Net metering, for almost all self-consuming rooftops — it values solar at your retail tariff rather than a typically lower feed-in rate.
- What happens to my unused solar credits at year end?
- It depends on your state. Some DISCOMs pay for surplus at a defined rate, others lapse it. Check the settlement clause before oversizing your system.
- Do I need a special meter for solar?
- Yes — the DISCOM installs a bidirectional (net) meter after inspection, replacing your existing meter. Gross metering instead uses separate generation and consumption meters.