What is a net metering in solar home?

Net metering is a billing mechanism that allows homeowners with rooftop solar panels to feed excess electricity generated by their solar system back into the power grid and receive credits on their electricity bill. It effectively makes the grid act as a virtual battery.

How Net Metering Works

  • Solar panels generate electricity during the day.
  • Excess electricity not consumed in the home is exported to the grid.
  • A bi-directional smart meter records both import and export units.
  • At billing time, exported units are subtracted from imported units.
  • You only pay for the net electricity consumed from the grid.

Financial Benefits of Net Metering

  • Reduces monthly electricity bills significantly.
  • Payback period for solar installation reduced to 5–7 years.
  • Generates monthly savings of ₹2,000–₹6,000+ depending on capacity.
  • Some states pay cash for surplus energy exported to grid.

Net metering is the financial backbone of rooftop solar adoption in India. It ensures that every unit of solar energy generated is monetised, making solar investment economically attractive for homeowners.

0 People have found this helpful

Similar Blogs

A letter from Albert Einstein in 2024 to young Albert

Digital Transformation

A letter from Albert Einstein in 2024 to young Albert

Aurum Logo
PropTech Pulse Editorial

15th March 2024

Pexo Icon

Ask Pulse Ai anything about real estate

Unlock the Latest in Real Estate

News, Infographics, Blogs & More! Delivered to your inbox.

Proptech Pulse Logo

Data that drives action.
Insight that inspires action.
Technology that empowers action.“

Made with Love

Statue

© PropTech Pulse 2026, All rights reserved.

Terms of Use and Privacy Policy