Solar panels generate the most power in the middle of the day — exactly when many homes are least occupied and consuming the least electricity. Net metering is the mechanism that makes this mismatch a non-issue, and understanding how it works is key to getting the most value from your investment.
How Net Metering Works
A net meter records electricity flowing in both directions: the power you draw from the grid, and the surplus power your system exports back to it. At the end of each billing cycle, you're only charged for the net difference between what you consumed and what you generated. If you exported more than you consumed in a given cycle, the surplus typically carries forward as a credit against future bills.
Gujarat's Net Metering Rules in 2026
Gujarat permits bi-directional net metering for residential, commercial and industrial rooftop systems up to 1 MW, among the more generous ceilings in the country. Settlement of banked credits happens on an annual cycle in most DISCOM areas, meaning any surplus generated during sunny months can offset consumption during the monsoon or winter when output is naturally lower.
Sizing Your System Around Net Metering
A common mistake is oversizing a system in the hope of "selling" large amounts of power back to the grid for profit. In practice, most DISCOM tariff structures value exported units at rates that make this a break-even proposition at best. The better strategy — and the one we recommend to every customer — is to size your system to closely match your annual consumption, which maximises the value of every unit generated rather than relying on export credits.
What Happens to Unused Credits
Under current Gujarat DISCOM policy, any banked energy credits remaining at the end of the annual settlement period are typically paid out at a fixed average power purchase cost rather than carried forward indefinitely — so it pays to size your system so that credits are largely consumed within the year rather than accumulating.
Practical Tips to Maximize Savings
- Shift flexible loads to daytime where possible — running washing machines, water pumps and EV charging during peak sun hours reduces your reliance on banked credits altogether.
- Review your sanctioned load before installation, since net metering approval is tied to your connection's sanctioned capacity.
- Keep documentation current — any change in ownership or connection details should be updated with your DISCOM to avoid disruptions to your net metering agreement.
The Bottom Line
Net metering is what makes solar math work in your favour year-round, not just on sunny afternoons. Getting the system size and export strategy right from day one — not after installation — is where a professional site survey and consumption analysis pays for itself many times over.