Net Metering vs Gross Metering by State: MSEDCL, UPPCL, BESCOM & TANGEDCO Compared

Net metering, gross metering, and net billing are the three models — we cover what each means in our general explainer. What that piece can’t tell you is which one applies to your specific system size, because that is set state by state, DISCOM by DISCOM, and revised often. Four major DISCOMs below show just how differently this plays out in practice — treat them as illustrative examples of the range, not a substitute for confirming your own state’s current rule.

Maharashtra (MSEDCL): systems up to 10kW get simplified, fast-tracked net metering approval. Above 10kW, MERC’s MYT Order 75 (2025) introduced a Grid Support Charge levied on gross solar generation — activated for FY2025-26 once the state’s rooftop solar capacity crossed 5,000 MW in February 2026. That is a genuinely unusual structural feature: the deal for larger net-metered systems in Maharashtra got measurably less generous as state-wide adoption crossed a threshold, not because of anything the individual consumer did. Banking has also tightened to a monthly cycle — unused surplus lapses at month-end rather than carrying forward all year — with any year-end balance settled around ₹2.82/unit, well below typical residential retail tariffs.

Uttar Pradesh (UPPCL): the official UPNEDA rooftop solar portal confirms net metering (not gross) is the standard framework, with system size capped at 100% of the consumer’s sanctioned connected load — residential systems in practice mostly fall in the 1–10kW range this implies. The settlement period runs the state fiscal year, 1 April to 31 March; any surplus units remaining at year-end are compensated at a stated ₹2 per unit by the DISCOM — again notably below typical retail rates, which is the general pattern across every state here, not specific to UP.

Karnataka (BESCOM): the Karnataka Electricity Regulatory Commission’s DSPV (Distributed Solar PV) reform, effective 1 July 2025, rebranded and restructured the state’s rooftop programme. Net metering is available up to 500kW per connection, with gross metering as an alternative arrangement (switching between the two, with wiring changes, requires a Supplemental Power Purchase Agreement with the DISCOM). One genuine easing worth knowing: KERC removed the requirement for low-tension domestic consumers up to 150kW to sign a full Power Purchase Agreement, cutting real paperwork for typical home installations.

Tamil Nadu (TANGEDCO): capacity eligibility is tiered by consumer class under the TNERC Net Metering Regulations — residential systems up to 10kW, LT commercial up to 500kW, and HT industrial/commercial up to 1MW. Settlement nets monthly, with any cumulative year-end surplus paid at an avoided-cost rate that has been reported in the roughly ₹2.25–3.50/unit range depending on the specific order in force — confirm the current figure directly rather than treating any single number here as fixed.

The pattern across all four: nearly every state now uses tiered capacity bands (simpler, faster net metering for smaller residential systems; more paperwork, gross metering, or extra charges as you scale up), and banking/settlement terms for unused exported units are consistently less generous than a simple full-retail-value assumption — monthly rather than annual netting is becoming more common, and year-end buyback rates typically land well below what you pay to import a unit. If a vendor’s payback projection assumes your entire exported surplus is worth full retail tariff indefinitely, that assumption is usually the weakest link in their math, not a neutral fact. Confirm your specific state’s current capacity band and settlement rate with your DISCOM or State Electricity Regulatory Commission before sizing a system for maximum export — these rules are being actively revised in most states through 2025–26, and our own subsidy-by-state pages cover the separate question of subsidy amounts.