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

Solar Roof Hook Installation: Step-by-Step Guide
A step-by-step guide to solar roof hook installation, covering positioning, alignment, and best practices for strong and reliable rooftop systems.

Solar Projects Challenges in India: Module Supply Shortages and Policy Delays Slow Growth
India’s utility-scale solar projects face delays due to module supply shortages and policy challenges, impacting the growth of renewable energy.

Service Panel Inspection Guide for Solar PV Systems
A complete guide to inspecting service panel connections in solar PV systems, including connection verification, electrical safety checks, preventive maintenance, and troubleshooting techniques.

Tools and Tackles Required for Installation of Solar PV Panels: Complete Installer Checklist
Proper tools and tackles are essential for efficient and safe solar PV installation. This guide provides a complete checklist of mechanical, electrical, and safety tools required for installers and EPC teams.

Solar EPC Installation Tools & Consumables Guide for Civil & Mechanical Work
A complete Solar EPC guide covering essential tools and consumables required for civil and mechanical installation to ensure smooth and efficient project execution.

Solar PV Fault Diagnosis During Power Interruptions
A complete guide to identifying faults in solar PV systems during power generation interruptions, including troubleshooting techniques, root cause analysis, and corrective maintenance.

What Is an Array Junction Box in Solar PV Modules? | Complete Guide
The Array Junction Box (AJB) is a critical component in solar PV systems, connecting multiple solar modules and ensuring safe flow of electricity to the inverter. This blog explains what an AJB is, its key features, types, and why it is essential for both residential and commercial solar installations. Understand how AJBs protect your system from overload, short circuits, and environmental factors while maintaining optimal performance.

Safe Handling of Solar PV Components: Complete Guide for EPC & Installers
Proper material handling is crucial in solar PV projects to avoid damage, reduce losses, and ensure safety. This guide covers best practices for transporting, storing, and installing solar components efficiently.