What is gross metering?
Gross metering treats your rooftop solar plant as a separate small generator that sells to the grid, while you remain a regular consumer that buys from the grid. Two meters do the accounting. A unidirectional generation meter at the inverter output counts everything the system produces and sells to the DISCOM at a fixed feed-in tariff. Your regular service-connection meter counts everything you consume at retail tariff. The two are billed independently.
Under Indian regulation, gross metering is typically used in three situations. First, for commercial and industrial rooftop systems above a state-defined threshold where the SERC has decided net metering would erode DISCOM revenue too aggressively. Second, in states like Karnataka where residential systems above 10 kW move to gross metering. Third, for utility-scale solar farms that are not even attached to a consumer load and exist solely to sell to the grid.
The structural difference from net metering matters because the two regimes lead to dramatically different financial outcomes for the same installed system. Net metering credits export at retail tariff (often ₹7 to ₹12 per kWh in commercial slabs). Gross metering credits export at a feed-in tariff (often ₹2.5 to ₹4.5 per kWh). The gap is the policy lever DISCOMs use to manage the revenue impact of distributed solar.
Why gross metering matters
For solar EPCs, gross metering is the rule that quietly redraws the line between projects that pay back in 3 to 5 years and projects that pay back in 7 to 10. Any quote that assumes net metering when the state has moved the customer's capacity tier to gross metering is wrong by 30 to 50 percent on the savings number, which is the number that closes or kills the sale.
For DISCOMs, gross metering is the lever that protects high-margin commercial and industrial revenue from being offset by solar exports priced at retail. A net-metered commercial consumer effectively buys solar at retail, which costs the DISCOM the entire commercial tariff. A gross-metered commercial consumer pays full retail and the DISCOM buys solar back at a wholesale rate, which is far less disruptive to the DISCOM's books.
For the homeowner or business, gross metering is the regime to verify before signing. Two state changes in 2020 to 2023 moved many commercial customers above 10 kW from net metering to gross metering or net billing without a transition period. Customers who had assumed net metering for life found their payback period suddenly stretched.
For policy, gross metering is the gradient through which Indian rooftop solar is moving as DISCOM financial pressure rises. Net billing is a related variant that combines elements of both.
How gross metering works
- Solar generation. Your rooftop plant produces DC power, which the inverter converts to grid-quality AC.
- Generation meter at inverter output. A unidirectional meter, sealed by the DISCOM, records every kWh the inverter sends out.
- Export to grid. The entire AC output flows to the DISCOM grid. The system does not self-consume.
- Consumption metering at service connection. Your normal energy meter counts everything you import from the grid for your loads, exactly as before solar was installed.
- Two separate bills. The DISCOM sends you a normal consumption bill at retail tariff for everything you used. The DISCOM also pays you at the feed-in tariff for everything the generation meter recorded.
- Settlement. Most state regulations require the DISCOM to credit the feed-in amount against your consumption bill, with any surplus paid out monthly or quarterly. Some states settle separately as a deposit into the consumer's bank.
- Tariff cycle. The feed-in tariff is set by the SERC and updated with each tariff order. Existing systems are typically grandfathered at the tariff that applied on the date of agreement signing.
Operationally, a gross-metered installation runs identically to a net-metered one. The hardware difference is one extra meter. The financial difference is everything.
Real example: net metering vs gross metering for a Bengaluru commercial unit
Situation. A 50 kW commercial rooftop on a small manufacturing unit in Peenya, Bengaluru. Served by BESCOM. Connected load 60 kW. Monthly consumption 6,500 units at a blended commercial tariff of about ₹9.5 per kWh.
Under net metering (hypothetical, if it applied). Solar generates around 6,750 units a month. Net consumption: 0 units billed, 250 units credit rolled forward. Energy charge saved: roughly ₹62,000 a month. Payback on the ₹32 lakh system: 4 years.
Under gross metering (which applies in Karnataka above 10 kW). The system sells all 6,750 units at the current BESCOM feed-in tariff of around ₹3.20 per kWh, earning about ₹21,600. The unit continues to import its full 6,500 units a month from the DISCOM at retail tariff, paying about ₹62,000. Net monthly outflow on energy: about ₹40,400. Monthly savings vs no-solar baseline: about ₹21,600. Payback on the same system: 12 to 13 years.
Lesson. The same hardware on the same roof yields a 3x difference in payback depending on the metering regime. An EPC selling a Bengaluru commercial rooftop without flagging gross metering up front is mis-quoting the customer.
Benefits of gross metering
- Predictable export revenue. The feed-in tariff is fixed and known, easier to model than slab-based retail tariffs that change with load profile.
- Cleaner project finance. For third-party-owned projects, gross metering looks like a small PPA and is easier to bank.
- Grandfathering protection. Existing agreements are typically locked at the tariff in force on the signing date.
- No annual true-up complication. No financial-year end credit lapse, no APPC mystery rate to calculate. You sell and you buy, both monthly.
- Works when net metering is not available. In states with shrinking net-metering caps, gross metering is the only legal export pathway.
- DISCOM-friendly. A more cooperative DISCOM means faster approvals and meter installation.
Limitations of gross metering
Lower revenue per kWh. The feed-in tariff is typically 30 to 60 percent below retail. The structural economics are worse for self-consumption-dominated projects.
Two meters, two paperwork tracks. Installation cost and ongoing administrative cost are both higher than net metering.
Tariff revision risk. SERCs can lower the feed-in tariff with each order. Existing projects usually keep their tariff, but new applications inherit the latest rate.
Less compatible with consumer subsidies. PM Surya Ghar is designed around net metering. Gross-metered residential systems in Karnataka above 10 kW are largely outside the central scheme.
No demand-side offset on the energy bill. Even if you generate at noon and consume at noon, gross metering does not net the two; you buy and sell separately. The proposal arithmetic is far less intuitive to a non-technical buyer.
Less attractive for residential. Households consume most of what they generate during the day. Gross metering ignores that and prices everything at the lower export rate.
Gross metering in India
Indian states use a mix of net metering, gross metering, and net billing. Selected examples:
| State | Where gross metering applies | Typical feed-in tariff |
|---|---|---|
| Karnataka | Residential systems above 10 kW; many commercial systems | Around ₹3.07 to ₹3.20 per kWh (recent BESCOM orders) |
| Maharashtra | Many commercial systems above 10 kW move to net billing or gross metering | Around ₹3.00 to ₹3.50 per kWh |
| Tamil Nadu | Net feed-in (a variant of gross) applies to LT industrial under recent orders | Around ₹3.00 to ₹3.50 per kWh |
| Telangana | Gross metering as the default for large commercial | Around ₹3.50 per kWh |
| Utility scale (PPA) | SECI auction-discovered tariffs for ground-mounted solar | ₹2.20 to ₹3.00 per kWh (recent rounds) |
The direction of travel is toward more gross metering and net billing for larger systems, with net metering protected for residential consumers below a state-specific threshold (often 10 kW). The Forum of Regulators has been the primary policy vehicle for this gradual shift.
Quick facts
| Term | Gross Metering |
|---|---|
| Type | Solar billing arrangement |
| How it works | All generation sold to DISCOM at feed-in tariff; all consumption bought at retail tariff |
| Hardware | Unidirectional generation meter + standard service meter |
| Typical feed-in tariff (India) | ₹2.50 to ₹4.50 per kWh, set by SERC |
| Typical retail tariff (commercial) | ₹7 to ₹12 per kWh in most states |
| Common applications | Commercial systems above net-metering cap, Karnataka residential above 10 kW, utility-scale |
| Compatible with | PPA-based ownership models, third-party rooftop |
| Less compatible with | PM Surya Ghar, self-consumption-focused residential |
Common mistakes about gross metering
- Quoting net-metering savings for a gross-metered installation. The arithmetic is off by 30 to 50 percent and the customer will discover it on the first bill.
- Assuming "metering" rules are uniform across India. Each state SERC sets its own rules with its own caps and tariffs.
- Confusing gross metering with net billing. Net billing credits exports at a lower rate but still nets against imports within the bill. Gross metering does not net at all.
- Forgetting the generation meter cost. Two meters cost more than one. Some DISCOMs require the consumer to pay for both.
- Treating the feed-in tariff as permanent. Existing agreements may be grandfathered, but new agreements inherit the latest tariff.
- Sizing the system for self-consumption under gross metering. If you cannot net against your bill, sizing for daytime consumption no longer maximises savings.
- Selling a residential 3 kW rooftop in Karnataka without checking the cap. Below 10 kW it is still net metering in Karnataka. Above 10 kW it switches to gross. The boundary matters.
- Ignoring the GST implication. Selling power can have GST consequences for non-residential entities. Verify with your CA before structuring as a regular supply.
Key takeaways
- Gross metering sells all solar output at a fixed feed-in tariff and buys all consumption at retail, with no netting.
- It is the default for utility-scale solar and increasingly the rule for large commercial and industrial rooftops in India.
- Net metering is usually better for the consumer because retail tariffs exceed feed-in tariffs.
- Karnataka uses gross metering above 10 kW residential. Many states use it above 10 kW commercial.
- Verify the regime before quoting savings. A 3x payback difference between net and gross metering is normal.
- Two meters are required: a unidirectional generation meter and the standard service meter.
- The trend in India is toward more gross metering and net billing for larger systems.
Frequently Asked Questions
What is gross metering in simple words?
Gross metering is a billing model where your rooftop solar plant sells all the electricity it generates to the DISCOM at a fixed feed-in tariff, while your home or business buys all the electricity it consumes from the DISCOM at the normal retail tariff. The two flows are billed separately and do not cancel each other.
How is gross metering different from net metering?
Net metering nets your exports against your imports and you pay only for the difference at retail tariff. Gross metering treats your solar plant as a separate seller; you sell all generation at a fixed feed-in rate and buy all consumption at retail. The arithmetic is completely different.
Which is better for the consumer: net metering or gross metering?
Net metering is usually better because retail tariffs are higher than feed-in tariffs in most Indian states. The gap can be 30 to 50 percent. Gross metering only beats net metering when the feed-in tariff is set above retail, which is rare in India today.
Why would a DISCOM prefer gross metering?
Gross metering protects the DISCOM's revenue from higher-slab consumers. Under net metering, a commercial customer who installs solar reduces the DISCOM's profitable industrial-tariff bill. Under gross metering, the DISCOM keeps that bill intact and pays only a lower wholesale rate for the solar exports.
Which states use gross metering in India?
Karnataka applies gross metering to residential systems above 10 kW. Several states use gross metering or net billing for commercial and industrial rooftops above a capacity threshold. The exact cap and rate is set by each State Electricity Regulatory Commission and changes with tariff orders.
Can I switch from gross metering to net metering?
It depends on the state regulation and your system capacity. Where both options exist, the regulation typically lets new installations pick net metering up to a cap. Existing gross-metered systems usually cannot switch without a fresh agreement and meter change.
What is the feed-in tariff in gross metering?
The feed-in tariff is the per-kWh price at which the DISCOM buys your exported solar energy. It is fixed by the SERC, typically based on the average power purchase cost (APPC) or a generic levelised cost of solar, and updated with each tariff order. Rates range from roughly ₹2.5 to ₹4.5 per kWh.
Does gross metering need a different meter?
Yes. Gross metering needs a unidirectional generation meter at the inverter output (to count what you sell) plus your regular import meter at the service connection. Net metering uses a single bi-directional meter that counts both directions.
Is gross metering eligible for PM Surya Ghar subsidy?
PM Surya Ghar is designed around net metering, not gross metering. In states where a residential consumer above the cap is forced into gross metering, the central subsidy may still apply for the sub-3 kW portion. Confirm with your DISCOM and the National Portal before quoting.
Why is gross metering common for utility-scale solar?
Utility-scale plants sell to the grid through PPAs and never consume their own generation. The gross metering model fits that case naturally. The 'gross' label in distinguishing it from net metering is mostly relevant in the rooftop and SME context.
Does the consumer pay more or less under gross metering?
On a system sized for self-consumption, the consumer typically pays more under gross metering than under net metering, because the feed-in tariff is below retail. The gap is the lost economic value compared with offsetting your own retail-priced consumption.
Can gross metering and net metering coexist on the same premises?
Yes in some states, no in others. Where allowed, the consumer can size part of the system for self-consumption (net-metered) and an additional part as a separate generator (gross-metered). The DISCOM uses separate meters for the two flows.
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- Central Electricity Authority (CEA). Technical standards for connectivity of distributed generation resources. cea.nic.in
- Forum of Regulators (FOR). Model net-metering regulation comparing net and gross metering frameworks.
- State Electricity Regulatory Commissions. Current tariff orders defining net metering, gross metering, and net billing eligibility for Karnataka (KERC), Maharashtra (MERC), Gujarat (GERC), Tamil Nadu (TNERC), Delhi (DERC), and others.
- Ministry of New and Renewable Energy (MNRE). PM Surya Ghar Muft Bijli Yojana guidelines covering eligible metering arrangements.
- Indian Renewable Energy Development Agency (IREDA). Feed-in tariff guidelines for utility-scale and commercial rooftop solar.
- SECI. Reverse-auction discovered tariffs that inform APPC and feed-in benchmarks.
- IS 16221 / IS/IEC 61727. Indian and IEC standards for PV grid interconnection and metering hardware.
Written by QuickEstimate Editorial, QuickEstimate Editorial (Surat).
Last updated: 4 June 2026.