Solar Net Metering in Industrial Units: Opportunities and Risks
Solar Net Metering in Industrial Units: Opportunities and Risks
Discoms in almost all the states provide Solar Net Metering facility by which the consumers can store the excess energy generated from the roof top solar plant with the Discom Grid and can use it in later hours.
During the Sun hours, when the load (in KW) of the factory or the commercial building is less than the roof top solar generation for any 15-minute block interval, the excess solar energy goes back to the Grid. During evening hours when the load is more and there is hardly any solar generation, then the stored solar energy is used back by the consumer from the Grid.
Steps of accounting of the roof top solar energy (Solar Net Metering)
The accounting of the roof top solar energy is done on a monthly basis.
- At the end of each month, the solar energy is set off against the energy consumed by the factory or the Plant through a bi-directional meter installed by the Discom at the Consumer premises.
- If there is any excess solar energy which is not used during the month, it is taken forward to the next month in which the consumer can use the same.
- However, if there is unused solar energy left in March (end of Financial Year), then it will lapse as per the policy in Haryana while it will be paid at Rs 2.0 /kWh in Uttar Pradesh. Similar policies exist in other states also including Delhi, Rajasthan and Punjab.
The table below shows the energy accounting and settlement for 1 month (April) under Solar Net Metering for a 100 KW solar system in a typical factory set up with a contract demand of 100 KW.
| Day | Energy Consumed(kWh) | Solar Generation)(kWh) | Banked Energy |
| 1 | 614 | 479 | – |
| 2 | 15 | 478 | 463 |
| 3 | 478 | 491 | 13 |
| 4 | 645 | 444 | – |
| 5 | 633 | 450 | – |
| 6 | 701 | 441 | – |
| 7 | 612 | 520 | – |
| 8 | 426 | 523 | 97 |
| 9 | 12 | 541 | 529 |
| 10 | 459 | 497 | 38 |
| 11 | 723 | 478 | – |
| 12 | 578 | 483 | – |
| 13 | 623 | 429 | – |
| 14 | 701 | 501 | – |
| 15 | 641 | 504 | – |
| 16 | 12 | 502 | 490 |
| 17 | 423 | 476 | 53 |
| 18 | 530 | 472 | – |
| 19 | 481 | 451 | – |
| 20 | 392 | 439 | 47 |
| 21 | 543 | 472 | – |
| 22 | 605 | 462 | – |
| 23 | 12 | 495 | 483 |
| 24 | 452 | 523 | 71 |
| 25 | 545 | 547 | 2 |
| 26 | 393 | 482 | 89 |
| 27 | 479 | 477 | – |
| 28 | 625 | 461 | – |
| 29 | 521 | 441 | – |
| 30 | 12 | 478 | 466 |
| April | 13,886 | 14,437 | 551 |
For certain days in April month, the energy is getting banked or stored with the Discom. At the end of month, solar has generated excess of 551 kWh or units which will be taken forward to the month of May.
Table below shows monthly settlements for the full year of solar energy.
| Month | Energy Consumed(kWh) – (1) | Solar Generation)(kWh) – (2) | (2)-(1) (kWh) | (Cumulative Energy banked (kWh) |
| Apr | 13,886 | 14,437 | 551 | 551 |
| May | 15,672 | 15,432 | (240) | 311 |
| Jun | 14,521 | 13,441 | (1,080) | – |
| July | 12,673 | 11,699 | (974) | – |
| Aug | 11,128 | 10,952 | (176) | – |
| Sep | 11,893 | 11,699 | (194) | – |
| Oct | 12,321 | 11,450 | (871) | – |
| Nov | 11,009 | 9,210 | (1,799) | – |
| Dec | 10,121 | 8,463 | (1,658) | – |
| Jan | 10,344 | 8,712 | (1,632) | – |
| Feb | 11,236 | 11,201 | (35) | – |
| Mar | 11,037 | 13,690 | 2,653 | 2,653 |
So, there is excess solar generation in the months of April and March. However, the excess generation of April month is utilized in future months during the settlement year. But the excess solar generation in month of March will lapse in spite of solar Net Metering facility.
Especially for seasonal industries that has lean period during winter months, the coincidence of the settlement year with the financial year is a problem. For example, the potato cold storages (aloo godowns) has this typical problem as they hit a off season from October to February when their load dips significantly.
Suggested Articles

Different Types of Solar Photovoltaic Systems: Complete Guide
Earthing and lightning protection are critical safety components in solar PV installations. This guide explains their importance, types, components, and best practices for solar installers.

Commercial Solar Power Plant Subsidy in India: What Businesses Need to Know
Businesses in India can reduce their solar installation costs through various MNRE-backed subsidies and state incentives. Learn eligibility, benefits, and the application process for commercial solar plants.

Difference Between Inverter and Solar Inverter: A Complete Comparison
Confused between an inverter and a solar inverter? This guide explains their key differences, working principles, advantages, and which option is best for your home or business.
The Rise of Clean Energy: Solar Energy Trends in 2023
The solar energy industry is on the rise, as the demand for clean and renewable energy sources continues to increase. 2023 is shaping up to be a big year for the solar energy sector, as new technologies and innovations are expected to drive growth and expand the reach of solar energy.

Sustainable Solar Panel Disposal: Recycling for a Greener Future
Sustainable solar panel disposal ensures old or damaged panels are recycled responsibly, reducing waste and environmental harm. By adopting eco-friendly recycling and reuse practices, we can recover valuable materials, lower carbon impact, and make solar energy truly sustainable from installation to end-of-life.

Unintentional Islanding Test for Solar PV Systems
A complete guide to performing the solar PV anti-islanding test, ensuring safe grid-connected operation, regulatory compliance, and reliable inverter performance.

Improve Your Power Factor After Solar Installation: Complete Guide
Power factor after solar installation often fluctuates due to system design and load patterns. Learn the key causes, challenges, and solutions for better efficiency.

Rooftop Solar Installation Cost in India: Complete 2026 Guide for Homes and Businesses
This 2026 guide explains the rooftop solar installation cost in India for homes and businesses. Learn price per kW, subsidies, ROI, payback period, and factors affecting system cost.