What is Net Metering | Full Process On-grid Rooftop Solar Plant

If you are planning to install a rooftop solar system, understanding net metering is extremely important. Net metering is the reason why many solar users in Delhi, Uttar Pradesh, Haryana, Uttarakhand and other states enjoy almost zero electricity bills – and sometimes even get money from the electricity company.
In simple words:
Net metering allows you to send extra solar electricity to the grid and take it back later when you need it.

What Is an On-Grid Solar System?

An on-grid solar system is connected to both your building and the government electricity grid.
During the day, your solar panels generate electricity and your home, shop, or factory uses this power first.

When solar power is not available (night or cloudy weather), electricity automatically comes from the grid.
This system works without batteries, making it affordable and low-maintenance.

What Is Net Metering?

Net metering uses a bidirectional meter (a two-way meter) that records:

  • Electricity taken from the grid (Import)
  • Electricity sent to the grid (Export)

At the end of the billing cycle, your electricity bill is calculated as:

Imported Units − Exported Units = Final Bill Units

How Net Metering Works – Step by Step

Daytime (High Sunlight)

  • Solar panels generate electricity
  • Your building uses solar power first
  • Extra electricity is sent to the grid
  • Your meter runs in reverse and gives you credits

Night or Low Sunlight

  • Solar panels stop producing electricity
  • Power is taken from the grid
  • Previously earned credits are adjusted automatically

Simple Net Metering Example

Month Solar Generated Electricity Used Result
Month 1 120 units 100 units 20 units exported
Month 2 120 units 100 units 20 units exported
Month 3 120 units 150 units 30 units imported

Total generation = 360 units
Total consumption = 350 units
Net export = 10 units

Net Metering Rules in Exolar Service States

Yearly Settlement (April–March)

  • Delhi
  • Uttar Pradesh
  • Haryana
  • Uttrakhand

Extra units are carried forward till 31st March and adjusted at year-end.

What Is APPC Rate?

APPC (Average Power Purchase Cost) is the rate at which DISCOM values your extra exported solar units.
It usually ranges between ₹2.7 to ₹4 per unit, depending on the state.

These units are adjusted in your bill or against fixed charges during settlement.

Net Metering vs Gross Metering

Feature Net Metering Gross Metering
Solar Usage Self + Grid Grid only
Bill Benefit High savings Limited
Best for Homes & Businesses Institutions

Why Exolar Energy Recommends Net Metering

What is Net Metering On-grid Rooftop Solar Plant Project

  • Maximum electricity bill reduction
  • Faster return on investment
  • State-wise compliant system design
  • End-to-end DISCOM coordination
Final Note:
Net metering is the backbone of rooftop solar savings. With Exolar Energy, your system is designed
according to your state policy, usage pattern, and long-term safety – not shortcuts.