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

Haryana’s GEOA 2025: A Boost for Captive Solar Plants and Wind Energy Developers
Haryana’s GEOA 2025 paves the way for growth in captive wind and solar energy projects with investor-friendly reforms.

Solar for Pharma & Chemical Industries: Cost, Benefits, Installation & ROI in India
A complete guide on solar systems for the FMCG industry in India covering installation cost, benefits, ROI, system sizing, and the installation process.

Solar PPA for Commercial Buildings: Cost, Benefits & Savings
Looking to cut electricity bills without investing in solar assets? Commercial Solar PPA providers offer zero-investment solar solutions where businesses pay only for the power generated—simple, risk-free, and cost-effective.

How to Connect Solar Panels to Battery: Step-by-Step Guide
Connecting solar panels to a battery is essential for storing solar energy and ensuring power availability when sunlight is low. This step-by-step guide explains how to connect solar panels to a battery safely using a charge controller, wiring diagrams, and best practices for beginners and professionals alike.

Solar Microgrid Solutions: Smart, Reliable & Scalable Power Systems
Solar microgrid solutions provide smart, reliable, and scalable power by integrating solar energy, battery storage, and intelligent control systems. These systems ensure uninterrupted electricity for industries, campuses, communities, and remote locations while reducing grid dependency and energy costs.

PPE Checklist for Solar Installations: Safety Gear Guide
A complete PPE checklist for solar installations covering essential safety gear required for safe and efficient on-site work.

Industrial Solar Plants with Diesel Generator Backup: What You Need to Know
Discover how industries can efficiently run rooftop solar plants alongside diesel generators (DG). Learn the benefits, setup tips, and hybrid system strategies to ensure uninterrupted power and maximize energy savings.

Difference Between Electric Power and Energy: Why Is It Important for Solar Installers?
Electric power and electrical energy are fundamental concepts in solar installations. This guide explains their differences, formulas, units, and importance for solar PV system performance.