Many Indian homeowners now install rooftop solar. Some systems make more power than the house needs. That is good news. Extra energy can lower bills. It can help the grid. But it can also create new questions. What happens to the extra electricity? Do you lose it? Do you earn money? Are there limits? This guide answers those questions. It uses simple words. Sentences are short. The article is written for Indian readers. It includes practical steps and FAQs.
Quick summary — the short answer
If your solar system makes more power than you use, one of these things will happen. First, the extra power may flow into the grid. Second, your DISCOM may give you credits for that exported power. Third, you might need batteries to store the extra energy at home. Fourth, some states and utilities may pay a feed-in tariff for surplus electricity. Rules differ by state. Check your local DISCOM policy. National schemes like PM Surya Ghar affect subsidies and system limits.
How power flows when your solar makes extra energy
When panels produce electricity, the home consumes what it needs first. Any extra power that the home does not use tries to go somewhere. If you are tied to the grid, the extra energy flows back into the utility lines. The meter records this export. Some meters spin backward. New digital meters log export and import separately. How your export is valued depends on net metering rules or net billing rules. If you have batteries or an off-grid system, surplus energy may be stored instead. If neither battery nor grid is available, the inverter may throttle power to avoid overproduction. Leading Solar Panels Company in India
Net metering — the common case for homes
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Net metering is the most common way homes get credit for exported solar energy. Under net metering, your exported units are credited against your imported units. That means the grid acts like a simple bank. If you export more than you import in a month, your bill may show a net zero or a credit. Different states set different rules. Some states allow monthly settlement. Others allow annual carryover. Some cap how much export is eligible for credit. Always check with your state DISCOM.
How net metering helps you:
- It reduces your net bill.
- It lets you “store” energy in the grid without batteries.
- It simplifies billing for owners.
How net metering can limit you:
- Some states limit the eligible system size for net metering.
- Credit rules vary. Export credits may be carried monthly or annually.
- If your export exceeds certain thresholds, the extra may have low or no value. Solsavi – Your rooftop solar guide
Also Read What Affects Solar Panel Performance? A Complete Guide for Indian Homes and Businesses
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Net billing and feed-in tariffs — different ways to value surplus power
Not every place uses traditional net metering. Some DISCOMs use net billing or gross metering. These systems price export differently.
Net billing means exported energy is bought by the utility at a fixed “export rate.” That rate may be lower than your retail tariff. You still pay import at retail price. Net billing lowers the value of exported power compared to net metering.
Gross metering means the utility buys all solar production at a fixed feed-in tariff. The homeowner still buys all consumption at retail rates. Gross metering is less common for homes but exists in some areas.
Some states are moving to defined export rates for new rooftop systems. These rules can change. Always check current local policies. CSEP+1
Limits, caps, and state differences you must know
India is large. Policies vary by state and by DISCOM. Rules that apply in Delhi may not apply in Maharashtra. Some states allow net metering up to 1 MW. Others cap it at a few kW. Some states limit the creditable export to a percentage of annual consumption. Others allow full annual carryover. These differences affect how worthwhile exporting excess power is. Before installing, check the state policy and the latest DISCOM circular. Many online guides and state portals list the rules.
What about PM Surya Ghar and subsidies?
The central government launched PM Surya Ghar to speed rooftop solar adoption. The scheme offers subsidies for small residential systems. It also aims to simplify installations and approvals. If you take a subsidised system, program rules can influence system size and metering. This affects how much surplus you can export and how quickly you reach subsidy limits. Always confirm subsidy eligibility and the required product lists before you sign a contract. PMSuryaghar+1
Can you sell surplus power to the grid for cash?
Yes — in some cases. Some DISCOMs or state policies pay a feed-in tariff or an export purchase rate. But this is not universal. Many states pay less for exported units than they charge for imports. This gap is the reason many homeowners prefer to maximise self-consumption rather than export. Self-consumption is when you use solar power at the same time it is generated. This gives full retail value for each unit used at home. CSEP
Technical limits: when the grid or transformer cannot accept excess
Even if your meter can record exports, physical constraints sometimes block exports. A neighbourhood transformer may not support extra reverse flow. Some DISCOMs restrict export during certain hours. In such cases, inverters or the grid controller may limit export. When grid capacity is tight, the utility may require export curtailment. Some areas require permission or equipment upgrades to allow exports. Check with your DISCOM if you plan a large system that may export more than local consumption. Solsavi – Your rooftop solar guide
How batteries change the picture
A battery stores excess solar for later use. Batteries stop most exports if you prefer. They raise self-consumption and give night-time solar use. Batteries are useful where:
- Net metering is poor or absent.
- Your DISCOM export price is low.
- You face frequent power cuts.
- You want energy independence.
Batteries add cost. They also need replacement over time. Compare battery cost to the value you get from exported units. In many states, batteries make sense only when export credits are low or when outages are frequent. Mercomindia.com
Virtual net metering and group solar options
Not all surplus must go to your own bill. Some programs let you use exported solar to credit other sites in the same DISCOM area. This is called virtual net metering or group net metering. It helps apartment societies and housing colonies. It spreads solar benefits across multiple consumers. Rules and availability vary by state and DISCOM. Ask your utility whether virtual net metering is supported. Solar Tiger
What about taxes and payments?
Currently, typical rooftop exports are settled through meter credits. These are not usually treated as taxable income for residential users. But tax rules can change. If you get cash payments or enter a commercial agreement to sell power, check tax implications. Keep documentation of exports and subsidies. This helps if you later need to show income for a loan or tax purposes.
Practical tips: How to get the best value from surplus solar
- Maximise self-consumption. Run heavy loads in daytime. Use washing machines, water heaters, and EV charging while the sun shines. This reduces exports and raises savings.
- Consider a small battery. Even a small battery can store midday excess and reduce night imports. This is useful where export value is low.
- Know your DISCOM rules. Read the state net metering policy. Ask the installer to include state rules in the proposal.
- Monitor production and bills. Check monthly export and import numbers. Reconcile app data with your final bill.
- Plan system size carefully. Oversizing can create surplus that has low value in some states. Size the system for your daytime needs if credits are small.
- Consider time-of-day tariffs. If your DISCOM charges more at peak hours, store or use solar to avoid those high tariffs.
- Look for virtual net metering. If you live in an apartment or coop, group solutions may use surplus for common areas.
Case examples — three scenarios from Indian homes
Scenario A: Small home, strong net metering rules.
A 3 kW system in State A produces 4,000 kWh/year. The family uses 3,200 kWh. Exports 800 kWh. Net metering credits are carried monthly. The family gets full retail value for exported units. Their bill falls close to zero in sunny months. This is the best-case scenario.
Scenario B: Large system, weak export value.
A 10 kW array in State B makes 13,000 kWh. Household uses 3,500 kWh. Exports 9,500 kWh. State B pays a low export rate or caps credits. The homeowner gets small payments for export. ROI is lower than expected. Adding a battery to store part of the export improves economics.
Scenario C: Apartment society using virtual net metering.
A society installs a 50 kW rooftop. Units exported are pooled. Credits are shared among flats. The society uses credits to power common area loads and to reduce individual bills. This model helps when single flats cannot host large panels.
These examples show why policy and system size matter.
Steps to follow if your system exports more than expected
- Check your monitoring app. Confirm the export numbers.
- Compare with the bill. Reconcile export units with the DISCOM meter reading.
- Talk to your installer. They can check for wiring or meter errors.
- Discuss rules with DISCOM. Confirm how exported units are credited or paid.
- Consider storage or load shifting. Batteries or timers can absorb surplus.
- If needed, upgrade permissions. Large export may require DISCOM approval or transformer upgrade.
Future trends that matter to homeowners
India’s rooftop solar market is growing fast. New rules and pilot projects change how exports are treated. Some states are revising net metering to include time-of-day pricing or export tariffs. Virtual net metering and community solar are rising. Programmes like PM Surya Ghar continue to push rooftop uptake, which may influence export rules and grid management. Keep an eye on DISCOM notices and national portals for updates. Mercomindia.com+1
FAQs — quick answers
Q: Will I lose my excess solar if I don’t have batteries?
A: No. If you are grid-connected with net metering, surplus usually flows to the grid and is credited. Check local rules for details.
Q: Can I earn money by exporting solar power?
A: Sometimes. Some states or DISCOMs pay for exported power. Often the export price is lower than retail. Check your state policy. CSEP
Q: What is the difference between net metering and net billing?
A: Net metering offsets imports with exports, often at full retail value. Net billing pays a set export rate for exported units, which can be lower than retail. CSEP
Q: Should I install batteries to avoid exporting?
A: Batteries help if export credits are low or if you face outages. But batteries add cost. Calculate payback before choosing. Mercomindia.com
Q: Do I need special permission to export large amounts?
A: Often yes. Large systems may need DISCOM approval or transformer upgrades. Check state rules before installing big arrays. Solsavi – Your rooftop solar guide
Final thoughts — make surplus work for you
Producing more solar power than you use is common. It can be a win. It can also be a challenge. The outcome depends on policy, system size, and your choices. If your DISCOM offers good net metering, exports help you. If export value is low, consider batteries, load shifting, or downsizing. Always read the state rules. Talk to a reputable installer. Monitor your system and your bill. With the right plan, surplus solar will cut your bills and help India’s energy transition.
