Net Metering
How net-metering actually works (with a monthly example)
7 min read · Updated 2026
Bi-directional metering, banking, and the difference between net-metering and gross-metering.
The concept
Your bi-directional meter records units imported from the grid and units exported when solar generates more than the load. Only the net is billed.
Monthly example
If you import 320 kWh and export 210 kWh, you pay for 110 kWh. Any surplus at year-end is settled at the DISCOM's average pooled cost.
Net vs. gross
Gross metering exports 100% of generation at a policy rate. Net metering is usually better for residential loads.
Useful links
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