If you are installing rooftop solar in UP, the metering option you choose directly determines how much money you save every month. Net metering and gross metering are both available in Uttar Pradesh, but they work very differently — and for most homeowners and small businesses, the choice is not even close.
How Each System Works
Net metering allows you to consume your solar power first and export only the surplus to the grid. Your electricity bill reflects only the net difference between what you consumed from the grid and what you exported. A bidirectional meter tracks both import and export, and surplus export credits are adjusted against your bill monthly, with an annual true-up settlement.
Gross metering works differently — all solar generation goes directly to the grid, and you continue paying your full electricity bill as usual. The DISCOM pays you a fixed feed-in tariff for every unit you export, currently at the APPC (Average Power Purchase Cost) rate of ₹3–4/unit in UP. You never directly consume your own solar power under this model.
The Savings Gap Is Significant
The difference in savings between the two models is stark for a typical UP consumer. Consider a household consuming 650 units/month with a 5 kW solar system generating 600 units/month:
| Metric | Net Metering | Gross Metering |
|---|---|---|
| Solar self-consumed | ~400 units (offset at ₹6–8/unit) | 0 units |
| Units exported to grid | ~200 units | 600 units |
| Export credit received | ~₹600–800 (at APPC ₹3–4/unit) | ~₹1,800–2,400 |
| Grid units still billed | ~250 units | 650 units |
| Monthly bill savings | ₹2,800–3,800 | ₹0 net (export income only) |
| Effective annual saving | ₹33,000–45,000 | ₹21,000–28,000 |
The core reason net metering wins is retail tariff offset vs wholesale APPC rate. Under net metering, self-consumed solar units replace grid electricity that costs ₹6–8/unit for domestic consumers and ₹8–10/unit for commercial consumers in UP in FY2026. Under gross metering, every unit is exported at only ₹3–4/unit APPC — barely half the retail value.
Who Uses Which in UP?
Under the 2020 Electricity Rights of Consumers Rules, net metering is generally applicable for systems up to 10 kW and gross metering applies for systems above 10 kW. In UP specifically, UPERC regulations allow both options for systems between 1 kWp and 1,000 kWp, with the consumer choosing at the time of application.
For residential solar (1–10 kW under PM Surya Ghar), net metering is almost universally the correct choice. Gross metering makes more sense only for large commercial or industrial setups where the building is unoccupied during the day and cannot self-consume solar generation — such as a warehouse or a seasonal facility.
How Net Metering Settlement Works in UP
Understanding the billing cycle helps maximise your benefit:
- Surplus export units are credited monthly against your bill at the applicable DISCOM rate.
- At the end of the annual settlement period (typically March), any unadjusted net export balance is paid out at the APPC rate of ₹3–4/unit.
- This means self-consumption is always more valuable than export — the more solar you use directly, the better your returns.
- Seasonal variation favours winter months, when lower consumption often results in carry-forward credits that offset summer bills.
FAQs
Q1. Which is better for a home solar system in UP — net metering or gross metering?
Net metering is almost always better for homes, as self-consumed units offset expensive retail tariff (₹6–8/unit) rather than earning the low APPC export rate (₹3–4/unit).
Q2. What is the export rate for surplus solar units in Uttar Pradesh in 2026?
Surplus units are settled at the APPC rate of approximately ₹3–4/unit during annual true-up in UP.
Q3. Can I switch from gross metering to net metering after installation?
Switching is subject to UPERC approval and DISCOM discretion; it is far simpler to choose net metering from the start during your application.
Q4. Is net metering available for commercial and school rooftop systems in Noida?
Yes, all six UP DISCOMs support net metering for systems up to 500 kW, covering homes, offices, schools, and clinics.
Q5. What happens to unused export credits at the end of the year?
Annual surplus export units that cannot be adjusted against bills are paid out by the DISCOM at the prevailing APPC rate, typically ₹3–4/unit.
