CEEW – Demystifying India’s rooftop solar policies – A state-level analysis Issue Brief | November 2019

The difference between net metering and gross metering
In the net metering mechanism, the electricity generated by the RTS system is consumed by the user and any excess electricity is injected into the grid. In case the consumer requires more power than what
is produced by the RTS system, they can import the balance from the grid. At the end of the settlement period, the consumer is only charged for the ‘net’ energy utilised – the difference between the energy produced through the RTS system and the energy consumed over
the billing period. A bi-directional meter is used to measure the net electricity consumption of the system.
In case of gross metering, the total electricity generated by the solar system is injected into the grid, and the consumer imports electricity from the grid for consumption. At the end of the settlement period, the consumer is compensated for the electricity exported to the grid at the Feed-in-Tariff (FiT) rate determined by the State Electricity Regulatory Commission.


  • Sanctioned load/contracted load – Sanctioned load is the maximum demand which is to be supplied by the discom to the consumer as indicated in the agreement between them. It is denoted in kW, kVA, or HP.
  • Distribution transformer (DT) capacity – A distribution transformer is a step-down transformer which is used for electric power distribution. DT capacity is the maximum load that can be put on a transformer within voltage limits by the electricity-generating consumers.
  • Surplus generation – It is the difference in electric power exported from the RTS plant and imported from the grid. It is denoted in kW, kVA, or HP.
  • Cap on export with respect to consumption – It is the limitation put on the export of electricity to the transformer with respect to the consumer’s total consumption.
  • Billing period – The time period for which regular electricity bills are prepared for the consumers by the discom.
  • Settlement period – The time period within which consumers should be compensated for the surplus energy injected into the grid if it has not yet been settled in the billing period.
  • Range allowed – This is the approved minimum and maximum capacity of the rooftop solar system which can be installed by an eligible consumer.
  • Average power purchase cost (APPC) rate – The weighted average pooled price at which the discom purchased electricity from its energy suppliers, except those based on renewable sources, including its self-electricity generation cost in the previous year.
  • Feed-in tariff (FiT) – The payment made in proportion to the power generated to consumers who generated electricity from renewable sources and provided it to the grid.
  • Group-net metering – An arrangement whereby the surplus energy which is generated from a renewable source and fed into the grid through net metering is adjusted within the same discom’s area of supply in more than one electricity service connection(s) of the same consumer.
  • Virtual-net metering – An arrangement in which the entire energy which is generated from a renewable source is exported to the grid through a net meter or gross meter, and the exported energy is adjusted within the same discom’s area of supply in more than one electricity service connection(s) of the participating consumer.

About Ritesh Pothan

Ritesh Pothan, is an accomplished speaker and visionary in the Solar Energy space in India. Ritesh is from an Engineering Background with a Master’s Degree in Technology and had spent more than a decade as the Infrastructure Head for a public limited company with the last 9 years dedicated to Solar and Renewable Energy. He also runs the 2 largest India focused renewable energy groups on LinkedIn - Solar - India and Renewables - India
This entry was posted in Cross Subsidy Surcharge, DISCOM, Grid Connected, MSEDCL, Net Metering, PV, Renewables, Rooftop, Solar, Transmission Charges and tagged , , , , , . Bookmark the permalink.

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