A grid-connected solar system and a property load operate at the same time. When solar generation is lower than consumption, the property imports the balance from the grid. When generation is higher, the surplus may flow to the grid if the system, meter, and approval allow it.
Net metering uses an approved bidirectional metering arrangement to record electricity imported from and exported to the grid. How those readings are adjusted on the bill depends on the current regulations, DISCOM procedure, tariff category, and settlement rules.
Three energy flows to understand
- Solar self-consumption: generation used instantly by the property's connected loads.
- Grid import: electricity drawn when loads exceed solar generation.
- Grid export: surplus generation sent out when solar exceeds the load and export is permitted.
Self-consumed solar does not pass through the import side of the utility meter. Exported and imported energy are recorded according to the installed metering arrangement.
A simple daytime example
If the system is generating 4 kW while the building is using 6 kW, roughly 4 kW is supplied by solar and 2 kW comes from the grid, ignoring small conversion effects for illustration. If the building drops to 2 kW while solar remains at 4 kW, the surplus may export if the approved setup permits it.
Net metering is not battery storage
The grid is not a physical battery reserved for one consumer. Exported units are measured and settled under rules. Net metering also does not make an ordinary on-grid system run during an outage. Anti-islanding protection shuts the inverter down when the grid fails unless an approved backup architecture is separately designed.
Why rules cannot be generalized nationally
Electricity distribution is regulated through state-level frameworks and implemented by DISCOMs. Capacity limits, application steps, meter arrangements, charges, settlement periods, carry-forward treatment, and eligible consumer categories can change. A rule quoted for one state, DISCOM, year, or tariff category may not apply elsewhere.
Typical project checkpoints
- Confirm connection category, sanctioned load, serving DISCOM, and consumer details.
- Submit the proposed capacity and technical application through the current official channel.
- Receive technical feasibility or other required permission.
- Install the system to approved specifications.
- Complete inspection, testing, metering work, and commissioning.
- Check the first bills to confirm import/export readings and settlement presentation.
Questions to ask before approving a quote
- Which current regulation and DISCOM process applies to this connection?
- Is the proposed capacity compatible with sanctioned load and technical feasibility?
- Who submits and tracks the application?
- Are meter costs, testing, application charges, and utility work included or excluded?
- How are exported units currently treated?
- What happens if approval is granted for a different capacity?
- Who checks the first bill after commissioning?
Read the first solar bill carefully
Compare opening and closing meter readings, imported units, exported units, billing period, fixed charges, adjustments, and any carry-forward display. Save the commissioning documents and take photographs of meter readings. If the bill looks inconsistent, raise it promptly with the relevant records.
Always verify current state regulations and DISCOM instructions. This explanation describes the concept, not a universal settlement formula.
Sources and verification
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