In 2026, net metering lets a Gujarat home offset the grid electricity it uses against the solar power its panels export — on a single bidirectional meter — so you pay only for the net difference. But any leftover surplus you send back is bought by your electricity company (DISCOM) at just ₹2.25 per unit, far below the ₹3.05–5.20 per unit you pay to buy power. The real money, therefore, is in using your own solar, not in exporting it.
The one rule that decides your savings
Self-consumption is worth roughly 1.5× to 2.5× more than export. Every solar unit you use yourself avoids the retail tariff (₹3.05–5.20/unit, higher on the upper slabs), while every unit you export earns only ₹2.25/unit. That single fact drives the whole sizing decision: size your system to match what you actually consume (about 80–90% of your usage), not to over-export.
What net metering is (in plain language)
Net metering is a billing arrangement in which a single bidirectional (net) meter records both the electricity you draw FROM the grid (import) and the surplus solar you send TO the grid (export). You are billed only on the net difference (import minus export).
The everyday way to picture it: the grid acts like a free "battery" or "bank". During the day your panels usually generate more than the house is using, so the surplus flows into the grid and is stored as credit. At night or on a cloudy day, you draw that power back. The meter simply keeps two running totals. Torrent Power's own consumer FAQ describes it exactly this way — units generated from the solar system, if not used, are exported to the grid, recorded in the bidirectional meter, and can be used at any point during the same billing month.
How the mechanics work in Gujarat (2026)
- Rules in force: the GERC (Net Metering Rooftop Solar PV Grid Interactive Systems) Regulations, 2016, as amended by the Third Amendment (Notification No. 02 of 2022, dated 31 May 2022) and the Fourth Amendment 2024 (notified September 2024), which streamlined approvals, timelines and infrastructure cost-sharing.
- Billing & settlement: within each billing cycle, your exported units are set off against your imported units, and you pay net tariff only on the remainder. The overall settlement period runs over the financial year (April to March).
- The surplus (export) rate: where your export exceeds your import, the Third Amendment values that surplus for self-owned and SURYA Gujarat residential consumers at ₹2.25/unit for the first 5 years from commissioning, and thereafter at 75% of the simple average of the tariff discovered through GUVNL's competitive bidding for non-park-based solar projects. Note: this ₹2.25/unit rate applies to residential consumers — a common misconception is to apply it to MSME units, where a separate provision exists.
- Banking charges: ₹1.50/kWh for demand-based consumers and ₹1.10/kWh for MSME and other LT demand-based consumers. Residential consumers and government buildings pay no banking charge.
- Meter type: residential consumers get a bidirectional meter of the same accuracy class as the one already installed; industrial, commercial and government consumers require an ABT-compliant meter with 15-minute integration.
System size limits & who is eligible (2026)
- Capacity range for net metering: 1 kW up to 1 MW; minimum size 1 kW.
- Residential (LT): up to your sanctioned load. Systems up to 10 kW get deemed (automatic) technical-feasibility approval — no separate study is required. Any load enhancement or infrastructure strengthening up to 6 kW is carried out by the DISCOM at its cost.
- Commercial / Industrial / HT: capped at sanctioned load; above the net-metering ceiling, gross metering applies.
- Your DISCOM: UGVCL (North Gujarat, including Ahmedabad rural, Gandhinagar, Mehsana), MGVCL (Central/Vadodara), DGVCL (South/Surat), PGVCL (West/Saurashtra, Kutch, Rajkot), plus Torrent Power (Ahmedabad, Gandhinagar and Surat licence areas). All are subsidiaries of GUVNL and regulated by GERC.
Net metering vs net billing vs gross metering
| Feature | Net metering (Gujarat default for homes) | Net billing | Gross metering |
|---|---|---|---|
| Meters | One bidirectional meter | One bidirectional meter | Two separate meters |
| Self-consumed solar | Saves full retail tariff | Saves full retail tariff | None — all solar exported |
| Export valued at | Units netted 1:1; only net surplus paid at ₹2.25/unit | Separate, lower feed-in tariff | Fixed feed-in tariff for 100% of generation |
| Import billed at | Retail tariff | Retail tariff | Retail tariff (you buy all your power) |
| Best for | Homes & most rooftop owners | Larger consumers who export a lot | Dedicated generation, little on-site load |
For residential rooftop in Gujarat today, net metering is the default and the most beneficial arrangement.
A worked billing example — a 400-unit home
Gujarat's GERC-approved residential (RGP) telescopic slabs, effective 1 April 2025 and unchanged for FY2026–27 across UGVCL, MGVCL, DGVCL and PGVCL, are: first 50 units ₹3.05; next 50 (51–100) ₹3.50; next 150 (101–250) ₹4.15; above 250 ₹5.20.
- Without solar (400 units): energy charge = (50 × 3.05) + (50 × 3.50) + (150 × 4.15) + (150 × 5.20) = ₹152.50 + 175 + 622.50 + 780 = ₹1,730 in energy charges, plus fixed charges (₹15–70/month by load), FPPPA (~₹3.15–3.20/unit) and electricity duty.
- With a 3 kW system (~450 units/month): roughly 400 units are used directly and ~50 exported. Net import is near zero, so the slab-based energy charge collapses to almost nothing, and the 50 surplus units earn 50 × ₹2.25 ≈ ₹112. The bill drops to little more than fixed charges and minor levies — an up to 90% reduction.
- Counter-example — oversizing (5 kW on the same home): it generates ~700 units/month and exports ~300, earning only 300 × ₹2.25 = ₹675 — instead of the ₹1,500+ those units would have been worth if self-consumed. Poor economics; the panels you don't use are nearly wasted.
The bidirectional meter nets units within the cycle, so surplus only appears when monthly generation exceeds monthly use. That is exactly why right-sizing keeps almost all of your solar value at the full retail tariff.
How to apply in Gujarat
- Apply on the national portal pmsuryaghar.gov.in (linked to the SURYA Gujarat single-window programme).
- Get feasibility approval from your DISCOM, then install through an empanelled vendor using ALMM-listed solar modules.
- The DISCOM inspects the system and installs the bidirectional meter, after which your system goes live.
- A residential system attracts up to ₹78,000 in PM Surya Ghar central subsidy, with a typical payback of about 3–4 years.
What's coming — the Draft DRES Regulations 2026 (not yet law)
GERC released the Draft Distributed Renewable Energy Sources (DRES) Regulations 2026 on 15 May 2026. It is a draft only — not yet notified. If finalised, it would replace the 2016 regime and introduce five mechanisms (Net Metering, Net Billing, Group Net Metering, Virtual Net Metering and Gross Metering), while retaining the ₹2.25/kWh rate for residential net-metering surplus. We keep our customers updated whenever a change is actually confirmed — we never quote draft rules as if they are final.
Want this worked out on your own bill?
Send us your last few electricity bills and we'll show you, honestly, how net metering would change your monthly bill and what system size keeps the most value at the full retail tariff.
Estimate my savingsAll figures are 2026 estimates based on GERC tariff orders and the GERC Net Metering Regulations (2016, as amended). The ₹2.25/unit surplus rate applies for the first 5 years from commissioning for self-owned / SURYA Gujarat residential consumers; banking charges do not apply to residential consumers. The Draft DRES Regulations 2026 are proposed and not yet in force. Actual results vary by DISCOM, tariff slab, consumption pattern and system size — we confirm the current rules for your specific connection before quoting.