Net Metering Approvals in India — A Step by Step State Guide for EPCs

Why Every Rooftop Solar Project Lives or Dies by Net Metering

Net metering is the billing mechanism that makes rooftop solar financially viable for most Indian households and businesses. When a solar system generates more electricity than the property uses at that moment, the surplus flows back into the grid through a bidirectional meter. The DISCOM credits those exported units against the electricity the property imports from the grid later — at night, during cloudy periods, or whenever solar generation is insufficient. The net of imports and exports is what the consumer pays for. Without net metering, excess solar generation is simply wasted, and the project's payback period doubles or worse.

For EPCs, net metering approval is not an administrative detail to handle after installation. It is a prerequisite that must be confirmed before the client signs the contract. A project completed without net metering approval is a project that cannot deliver on its financial promise — and the EPC is responsible for the gap between the proposal's yield based savings estimate and the actual bill reduction the client experiences. Getting the documentation right, submitting early, and tracking the DISCOM's timeline are core execution skills that separate EPCs who win repeat business from those who manage unhappy clients.

The 7-Step Process — From Registration to Grid Activation

1. Register on the National Rooftop Solar Portal — Same Day
   Go to the PM Surya Ghar national portal and create an account for your client, or assist them in registering. Select the state and DISCOM. The portal routes the application to the correct distribution company automatically. Most major DISCOMs are integrated with the national portal — check if yours is, and use the direct DISCOM portal as a fallback if not.
2. Submit the application with full documentation — Day 1
   Upload the complete document set (see checklist below) through the portal. Incomplete applications are the single most common cause of delays — the DISCOM will request missing documents, adding weeks to the timeline. Submit everything in the first application.
3. Technical feasibility review — Upto 30 days
   For systems upto 10 kW under PM Surya Ghar: technical feasibility is deemed automatically approved under the Electricity (Rights of Consumers) Rules 2020 — no waiting required. For systems above 10 kW: the DISCOM reviews your site's load, transformer capacity, and interconnection feasibility. This takes up to 30 days. Approval (or rejection with reasons) is communicated in writing via the portal.
4. Select empanelled installer and install the system — 1 to 4 weeks
   After feasibility approval, select an installer empanelled with your DISCOM from the portal's verified vendor list. Complete the physical installation — panels, inverter, earthing, surge protection, AC and DC cabling. The installer uploads all installation documentation to the portal after completion.
5. Apply for net metering and commissioning inspection — Inspection within 15 days
   Submit the net metering application through the portal after installation. The DISCOM schedules a site inspection, typically within 15 working days. A junior engineer visits the site to verify that the installation matches the approved design, that all safety specifications are met, and that the inverter has anti islanding protection active.
6. DISCOM installs bidirectional meter — Days to 2 weeks post inspection
   If the inspection passes, the DISCOM replaces the consumer's existing meter with a bidirectional smart meter that records both import (power drawn from grid) and export (surplus solar sent to grid). The old meter is removed. From this point, billing under the net metering arrangement is active.
7. System activated and subsidy disbursed — Within 30 days of activation
   Upload the commissioning certificate and bank details on the portal. For PM Surya Ghar projects, the subsidy is disbursed via direct bank transfer (DBT) after activation. Confirm with the client that the subsidy has been received. This is also the moment to activate remote monitoring and hand over system access credentials.

The Document Checklist — Submit All of These in the First Application

Missing even one document causes the DISCOM to flag the application and request resubmission, which resets the clock. Every EPC should have a standardised documentation kit for each project type:

• Latest electricity bill — confirms the consumer's account number, sanctioned load, and connection type
• Government ID (Aadhaar or PAN) — identity verification for the system owner
• Property ownership proof — title, registry document, or property tax receipt; for rented or society properties, also include a No Objection Certificate from the owner or RWA
• Single line diagram (SLD) — the electrical schematic showing how panels, inverter, and meter connect; must comply with your specific DISCOM's format requirements (these vary by state)
• Equipment specifications — IEC certified datasheet or test certificate for the solar panels and inverter
• ALMM compliance documentation — for PM Surya Ghar and other scheme projects, confirmation that modules are from an ALMM List I certified manufacturer
• DCR certificate number — for subsidy linked projects, the 16-digit traceability certificate from the DCR Verification Portal
• Commissioning certificate — issued after installation, signed by the supervising engineer confirming the system meets CEA technical standards

State by State Rules — The Six Largest EPC Markets

A Policy Change Every EPC Should Know Before Installing

The draft National Electricity Policy 2026 has signalled a potential future shift: for new consumers installing systems above 5 kW, net metering may eventually be replaced by gross metering — where all generation is sold to the grid at a fixed feed in tariff rather than netted against consumption. Existing net metering consumers will be grandfathered into the current arrangement. This signal means that clients who install now, under the current net metering framework, lock in a significantly more favourable billing structure than those who wait. It is a genuine and specific reason for installation urgency that EPCs can communicate to hesitant commercial clients.

Frequently Asked Questions

The most searched net metering questions from Indian solar EPC communities — answered plainly.

How long does net metering approval take in India?

Typically 15 to 45 days from complete application submission to meter activation, depending on DISCOM workload and state. For PM Surya Ghar residential projects up to 10 kW, the technical feasibility step is automatic, which reduces total time. Gujarat and Delhi are generally faster. Tamil Nadu tends to be slower. The biggest source of delays is incomplete documentation at first submission — every missing document adds one to two weeks as the DISCOM requests it and the clock resets.

What is the difference between net metering and gross metering?

Under net metering, only the net difference between what you import from the grid and what you export to it is billed. If you export 200 units and import 250 units in a month, you pay for 50 units. Under gross metering, all generation is sold to the grid at a fixed feed in tariff, and all consumption is purchased from the grid separately at the standard tariff. For most Indian commercial and residential consumers, net metering is more financially beneficial because retail tariffs (what you save by not buying from the grid) are higher than feed in tariffs (what the DISCOM pays for your exports). The draft NEP 2026 has signalled a potential future shift to gross metering for new systems above 5 kW — existing net metering users will be grandfathered.

Can I get net metering if I live in a rented property or housing society?

For rented properties: net metering is possible, but you need a No Objection Certificate from the property owner. The electricity connection must be in the tenant's name, or the owner must authorize the application. Many landlords are agreeable when the solar installation improves the property's value and the tenant takes full responsibility for the system. For housing societies: Maharashtra and Karnataka have introduced Virtual Net Metering (VNM), which allows the society to install one shared solar plant on the common terrace and distribute the generated units across individual flat accounts proportionally. This is a significant development for urban India — check whether your state DISCOM has activated VNM before proposing individual flat installations in societies.

What are the most common reasons DISCOM rejects a net metering application?

The most common rejection reasons, in order of frequency:

1. Incomplete documentation — missing NOC, outdated electricity bill, or no commissioning certificate.
2. SLD format mismatch — the single line diagram does not match the DISCOM's specific format requirements; each state DISCOM has different SLD standards.
3. System capacity exceeds sanctioned load — many DISCOMs require the solar system's capacity to be within or close to the consumer's sanctioned electrical load; proposing a 10 kW system to a household with a 3 kW sanctioned load often triggers rejection.
4. Non compliant inverter — inverter does not have anti islanding protection certified to the required standard.
5. ALMM non compliance — for subsidy linked projects, modules not from ALMM certified manufacturers.
   

Do commercial and industrial consumers need a different net metering process?

The core seven steps are the same, but commercial and industrial applications above 10 kW always require a full technical feasibility review (no automatic approval). Load analysis is more detailed, the SLD requirements are more complex, and DISCOMs in some states require a structural safety certificate for rooftops above certain spans. For very large commercial systems (above 500 kW in many states), the application may need to go through a senior technical committee rather than a standard junior engineer inspection. The timeline for commercial approvals is typically 30 to 60 days rather than the 15 to 30 days typical for residential. Factor this into your project timeline and communicate it clearly to commercial clients before they sign.

Sources

• PM Surya Ghar National Portal — pmsuryaghar.gov.in — Application process, deemed feasibility for systems up to 10 kW, empanelled vendor requirement
• GoSolarIndex — gosolarindex.in — "Net Metering India 2026: State by State Rules, Limits, Application and New Changes" — Karnataka VNM, Maharashtra 5 MW, draft NEP 2026 signal
• SolarSquare — solarsquare.in — 7-step PM Surya Ghar net metering process (September 2025)
• Central Electricity Authority (CEA) — cea.nic.in — Technical standards for grid connectivity of distributed generation resources