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

How Quickly Can Solar Panels Pay for Themselves? Payback Period Explained
Learn how the solar panel payback period works, factors that affect ROI, and how soon you can recover your solar investment.

Different Technical Parameters and Performance of a Solar PV Module
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.

Selecting Solar Panels: Best Guide for Homes and Factories
Solar panels are a hot topic these days, as the cost of solar is finally approaching what the average family can afford.

PV Cable & Conduit Labeling Guide: Best Practices for Solar Installations
A complete guide to cable termination in solar installations, including tools, step-by-step methods, and best practices for safe connections.

Solar Site Assessment: Shadow Analysis for Maximum Energy Generation
Shadow analysis is a critical step in solar site assessment. It helps solar installers identify shading obstacles and optimize panel placement for maximum energy generation.

How to Check Materials Received on Site for Solar PV Projects: Complete Inspection Checklist
Ensuring the quality of materials received at site is critical for successful solar PV installation. This guide provides a detailed inspection checklist to verify solar components before installation.

Market Demand of Solar PV Installer in India – Growth, Opportunities & Future Scope
India’s solar energy sector is expanding rapidly, creating strong demand for skilled solar PV installers across rooftop, commercial, and utility-scale projects. With increasing investments in renewable energy and rising industrial solar adoption, trained installers are becoming critical to project execution and performance. This blog explores market growth trends, career opportunities, salary potential, and the future scope of solar PV installation jobs in India’s booming renewable energy industry.

Group Net Metering for Solar Projects: A Smart Way to Maximize Solar Energy Generation
Discover how group net metering allows multiple participants to share solar energy from a single project, reduce electricity bills, and enhance solar efficiency.