Net Metering
Net metering is the grid-interconnection settlement in which a bidirectional meter nets your solar exports against your imports — an exported unit offsets a consumed unit — under capacity caps and settlement rules set by your state's regulations.
Why it matters on an MEPF project
Net metering is what makes daytime-heavy rooftop solar bankable for consumers whose usage and generation do not perfectly overlap: surplus flows out, credits flow back. Because an exported unit is effectively valued at your retail tariff, the regime materially shapes plant sizing — often more than roof area does.
It is also entirely a creature of state regulation: eligibility caps (absolute kW and/or a percentage of sanctioned load), settlement periodicity, treatment of unadjusted credits, and the alternative regimes (gross metering, net billing) all vary and get revised. The application itself — feasibility, agreement, meter installation, synchronisation — is a DISCOM process with its own queue, which is why we run it as part of EPC scope rather than leaving it to the customer.
How it's specified in practice
| Parameter | Typical / working position | Governing reference |
|---|---|---|
| Metering | Bidirectional (net) meter at the interconnection | DISCOM metering spec |
| Eligibility caps | kW limits and/or % of sanctioned load — state-specific | state net-metering regulations |
| Settlement | Billing-cycle netting; year-end treatment per regulation | state regulations |
| Alternatives | Gross metering / net billing where mandated or chosen | state regulations |
Common mistakes
- Sizing the plant past the state cap, then redesigning mid-application.
- Assuming credits roll over forever — year-end rules differ.
- Ignoring sanctioned-load linkage before applying.
- Treating DISCOM timelines as EPC timelines in the project plan.
Related on this site
One of 68 working definitions in the MEPF & solar engineering glossary. The buying side of the same decisions is in the buyer's guides; the numbers are in the calculators.
Frequently asked
Net metering vs gross metering — the difference?
Net metering offsets exports against imports at retail value; gross metering sells all generation at a feed-in tariff while you buy all consumption at retail. Which applies (and when you may choose) is your state regulation's call.
How much solar can I install under net metering?
Up to your state's cap — commonly expressed against sanctioned load and/or an absolute limit. Our solar-vs-sanctioned-load calculator shows your headroom before the application.
Standards referenced: state net-metering regulations · DISCOM procedures