The Hidden Subsidy- Net metering

Why Net Metering Is Your Best Solar Investment Incentive

Many commercial and industrial consumers often ask me the same question when exploring rooftop solar: “Are there any government subsidies?”

It’s a fair question—but that shouldn’t drive your decision

The biggest subsidy is already built into the policy framework: Net Metering.

Think about it: in a modern, increasingly decentralised grid, injecting excess power isn’t trivial. There are costs—balancing, forecasting errors, grid infrastructure stress. Yet under net metering, the system allows you to export excess solar generation and offset it 1:1 against your consumption, in both energy and tariff value. That’s not just support—it’s a powerful structural incentive.

The Subsidy You Never Knew You Had

Net metering isn't marketed as a subsidy in India. It doesn't come with foundation stone ceremonies or ministerial announcements. Yet it represents perhaps the most generous energy policy gift that Indian commercial and industrial consumers will ever receive.

Consider what net metering actually does under India's current regulations: it transforms your factory or office into a power plant with guaranteed revenue. When your rooftop solar system generates excess electricity, state electricity boards accept it at retail tariff rates— for the time block you exported and even adjust it with off-peak hours. No wheeling charges on the excess. No cross-subsidy surcharge on your own generation. No transmission losses deducted.

This is extraordinary when you understand Indian grid economics. In reality, injecting distributed power into state grids creates real costs—load dispatch complexity, grid balancing, transmission infrastructure stress, and regulatory compliance overhead. Traditional IPPs face these costs directly through banking charges, wheeling fees, and complex PPA structures with state utilities.

Net metering eliminates all of that friction for you

The Regulatory Evolution

Smart businesses don't chase subsidies—they recognize structural advantages before they disappear.

The Central Electricity Regulatory Commission's draft amendments suggest movement toward gross metering, time-of-use settlements, and grid support charges. State regulators are increasingly viewing net metering as a transitional policy rather than a permanent feature.

Tamil Nadu has already introduced gross metering for systems above 1 MW. Andhra Pradesh modified net metering rules to include standby charges. Delhi implemented net metering caps based on sanctioned load rather than rooftop potential.

The enterprises that recognise this dynamic—and act while current frameworks remain intact—will lock in decades of preferential treatment under grandfathering provisions.

Beyond the Spreadsheet: The Indian Energy Reality

This isn't just about reducing electricity costs in a country where industrial tariffs can exceed ₹8-10 per unit. Forward-thinking Indian businesses are using solar and net metering to hedge against regular tariff hikes, comply with Renewable Purchase Obligations, and gain energy security in an grid system prone to outages and load shedding.

When your competitors are negotiating complex open access arrangements or managing RPO compliance costs, you'll be generating predictable, policy-protected returns from your own rooftop while meeting sustainability mandates.

Consider the broader context: India's ambitious 500 GW renewable target by 2030 requires massive rooftop solar deployment. Current net metering policies were designed to encourage early adoption. As the market matures and grid integration challenges intensify, these policies will inevitably become more restrictive

The time to act is now.