Short answer
Net metering is an arrangement where a bi-directional meter records both the electricity you import from the grid and the surplus you export to it, and your bill reflects the net position. It matters because it lets a solar system offset consumption that happens outside daylight hours. Eligibility, capacity limits and settlement rules are set by your distribution company and applicable state regulations.
What the meter actually does
A conventional meter records only what you draw from the grid. A bi-directional meter records two quantities separately: units imported and units exported. Your billing is then calculated on the relationship between them rather than on gross consumption alone.
Practically, this means your solar generation during the day can offset consumption at night, subject to how your DISCOM settles the export.
Why it matters for the economics
Without net metering, only the solar energy you consume at the moment it is generated has value. Anything generated while you are out of the house would be wasted. Net metering captures that surplus, which substantially improves the return on a system sized to your annual consumption.
This is also why net metering rules affect optimal system sizing. If export is settled at a lower rate than import, a system sized well beyond your consumption becomes less attractive.
What your DISCOM controls
The distribution company sets eligibility by consumer category, capacity limits relative to your sanctioned load, the technical requirements your installation must meet, the inspection process, and how the settlement is calculated and carried forward.
These rules are set by regulation and can change. Any installer stating them as fixed permanent facts is overstating the position. What we can do is tell you what applies at the time of your enquiry and prepare the application correctly.
The application process
In outline: you apply to the DISCOM, the application is assessed for technical feasibility on your connection, the system is installed to the applicable specifications, an inspection is carried out, and the bi-directional meter is installed.
Timelines depend on the DISCOM, not the installer. What a good installer controls is submitting complete and correct documentation so the application is not delayed by avoidable errors.
Related questions
Do I get paid for the solar electricity I export?
It depends on your DISCOM's settlement mechanism. In many net metering arrangements, exported units offset imported units rather than generating a cash payment, with any remaining surplus carried forward or settled at a specified rate at the end of a settlement period. Confirm the current arrangement for your consumer category with your distribution company.
Is net metering available for commercial connections?
Availability and terms differ by consumer category and are set by state regulation. Commercial and industrial connections often have different capacity limits and settlement terms than residential ones. We confirm what applies to your specific connection category during the design stage.
Want this applied to your property?
Get an indicative system size for your electricity bill, then talk to us about what it would look like on your roof.