Net Metering India 2025 | Save Money with Solar & Reduce Bills

 Learn how Net Metering in India works in 2025. Compare solar vs electricity cost, see 3kW & 5kW system prices with subsidy, and maximize renewable energy savings.

What is Net Metering?

Imagine your rooftop solar panels producing more electricity during the day than your home needs. Instead of wasting it, Net Metering lets you send that extra energy back to the grid. In return, your electricity company gives you credits that reduce your monthly bill.

In simple words: Net Metering makes sure you only pay for the “net” units you consume after subtracting your solar contribution.

Why Net Metering Matters in 2025

Electricity bills are rising every year. The average cost per unit of grid power is ₹7–₹10 in many cities, while the cost per kW of solar power is dropping to as low as ₹50,000–₹90,000 after subsidies.

With Net Metering + solar, you get the best of both worlds:

• Use solar energy in the day

• Export extra units to the grid

• Import power at night if needed

• Pay only for the difference

* This is why homeowners and businesses can save money with solar and enjoy renewable energy savings.

Net Metering for Homeowners

Let’s break down the savings with examples:

🔹 3kW Solar System with Net Metering

• System cost (after subsidy): ~₹1.05–₹1.5 lakh

• Monthly bill savings: ~₹2,500–₹3,000

• Payback period: 4–5 years

• Benefit: Great for small homes with fans, lights, fridge, TV, and occasional AC use

🔹 5kW Solar System with Net Metering

• System cost (after subsidy): ~₹1.9–₹2.9 lakh

• Monthly bill savings: ~₹4,500–₹6,000

• Payback period: 4–5 years

• Benefit: Ideal for medium to large families running multiple appliances and ACs

Net Metering for Businesses

Businesses often face peak-hour electricity costs, which are the most expensive. With rooftop solar + Net Metering:

• Extra solar power during daytime lowers your dependence on costly grid power

• Credits from surplus energy can offset your night-time usage

• Improves your company’s sustainability score and helps achieve green goals

The Role of Subsidies in Net Metering

The government of India provides subsidies under the Rooftop Solar Programme:

• 40% subsidy on up to 3kW

• 20% subsidy on 3–10kW

Combined with Net Metering, subsidies make solar systems highly affordable for Indian households.

Choosing the Right Solar Setup for Net Metering

While many look for the cheapest solar panels for home use in India, remember:

• Monocrystalline panels offer higher efficiency and better returns in Net Metering setups.

• Polycrystalline panels are cheaper but may need more space.

• Always buy panels with at least a 25-year warranty.

Challenges of Net Metering

• Approval from your local DISCOM can take time

• Some states cap the size of solar systems eligible for Net Metering

• Not all appliances can run during power cuts unless you add a hybrid inverter + battery backup

But despite these challenges, Net Metering remains the most economical way to go solar in 2025.

The Future of Net Metering in India

As India targets 500 GW of renewable energy by 2030, Net Metering will play a huge role in balancing rooftop solar generation with grid demand. More states are simplifying policies to encourage homeowners and businesses to adopt solar.

Conclusion: Why Net Metering is a Game-Changer

If you’ve been thinking about going solar, Net Metering makes it even more rewarding. It ensures your investment pays back faster while giving you long-term renewable energy savings.

*Whether you install a 3kW or 5kW solar system, subsidies + Net Metering = lower bills, faster payback, and 25 years of free power.

CTA: Want to switch to solar with Net Metering? Contact us today and let us design a solar system that saves you money from day one.

FAQs – Net Metering India 2025

Q1: How does Net Metering save money?A: By crediting your solar exports against your electricity imports, lowering your net bill.

Q2: What is the cost of solar installation per kW in India in 2025?A: ₹70,000–₹1,20,000 before subsidy, ₹50,000–₹90,000 after subsidy.

Q3: Can I use Net Metering with a 3kW system?A: Yes, a 3kW system is perfect for small homes, and subsidies make it very affordable.

Q4: What’s the price of a 5kW system with subsidy in India?A: Around ₹1.9–₹2.9 lakh in 2025.

Q5: Is solar really cheaper than electricity?A: Yes—solar pays back in 4–5 years and then gives you 20+ years of savings, while grid electricity only gets costlier.