Net Metering vs Gross Metering: Key Differences

Published: 30 Oct, 2025 | By Solar

If you have ever thought about putting a rooftop solar panel for your home, you’ve probably heard terms like net metering and gross metering. Sounds confusing, right? You’re not alone.

Most families or small businesses who plan on getting an on-grid solar system in India ask this same question of “What is the difference between net metering and gross metering and which one should I choose?”

In this guide we’ll break it down for you, so that you clearly understand net metering vs gross metering in India and how it affects you.

And if you are wondering where to start, solar spectra power is here to help you, from explaining policies to installing the right solar energy system for your home or business.

What is Net Metering?

Think of net metering like this: imagine you have a farm. Some days, your farm grows more vegetables than your family needs. You eat what you need and give the extra to your neighbour. At the end of the month, your neighbour adjusts your grocery bill based on what you shared with them.

That’s exactly how net metering for solar energy works.

• Your rooftop solar panel for homes first powers your house.
• If your solar panels generate extra electricity, that extra goes to the electricity grid.
• At the end of the billing cycle, your bill shows only the net amount you used (your consumption minus your generation).

This is why people love net metering, it directly cuts down electricity bills even though off grid solar system prices are less.

What is Gross Metering?

Now let’s understand gross metering meaning in solar energy. Imagine the same farm example again. This time you don’t stock any veggies for yourself, you sell them in the market and whenever your family needs them you buy them from the market.

That’s what happens in gross metering in solar energy:

• All the electricity your panels produce goes straight to the grid.
• You don’t use this power directly. Instead, you buy electricity from the grid as usual.
• The electricity board pays you for every unit you send them, at a fixed rate (called feed-in tariff).

So in gross metering, your solar setup becomes more like a mini power plant selling electricity, instead of directly reducing your home’s bill.

Net Metering vs Gross Metering – The Real Difference

Now that we know both, let’s put gross metering vs net metering side by side:

In short:

• Net metering is best if your goal is to reduce monthly bills.
• Gross metering is better if your goal is to generate solar power as a business.

Net Metering vs Gross Metering in India – What’s Allowed?

In India, the debate of net metering vs gross metering has been going on for years.

• Most states support net metering for small capacities, especially for rooftop solar panel for homes.
• Gross metering is usually offered for big projects like commercial solar rooftop systems or solar plants.

Some states have clear limits. For example:

• Up to a certain size (say 10kW or 500kW), you may be allowed net metering.
• Bigger than that, you may have to go for gross metering.

This is why it’s always smart to check your state-wise solar subsidies and policies before deciding. Companies like Spectra Solar Power help customers with the paperwork and approvals, so you don’t have to worry about complicated rules.

Which One Should You Choose?

This is the most common question people ask: “Which is better for me, net metering or gross metering?”

Here’s the simple answer:

• If you are a homeowner or a small business owner, go with net metering. It lowers your bill every month, making your solar system for home price worth it much faster.
• If you are an institution, factory, or solar farm developer, gross metering may make more sense, since you’re selling energy to earn money.

For most families in India, net metering benefits for solar rooftop users are the main reason to invest in solar.

How This Affects Your Solar System Cost?

Many people think on-grid solar system price changes with net or gross metering. The truth is, the installation cost stays the same, whether you choose net or gross.

What changes is the payback period:

• With net solar metering, you save directly on electricity bills, so you recover your cost in 4–6 years.
• With gross metering, recovery depends on the tariff DISCOM pays you, which may be lower than what you pay for buying electricity.

So if you’re a family or small shop, net metering usually gives faster returns.

Government Subsidy and Metering

The government is actively pushing solar adoption in India. The PM Surya Ghar: Muft Bijli Yojana offers subsidies to households for installing rooftop solar panels for homes.

Your metering choice (net or gross) also plays a role in how much you save. Under state wise solar subsidies, most states support net metering for homes because it directly reduces the family’s monthly expenses.

Again, this is where Spectra Solar Power helps, not just with installation, but also with applying for subsidies and making sure your system is connected properly with the grid.

Why Choose Spectra Solar Power?

Choosing between gross meter vs net meter is not just a technical decision. It’s about understanding your needs and making the right financial choice. That’s why having an experienced partner like Spectra Solar Power matters.

Here’s what we do for you:

• We explain in simple words how your solar energy system will work and solar billing system in India net vs gross.
• We take care of the net metering application or gross metering paperwork with your DISCOM.
• We guide you on govt solar subsidies, state wise solar subsidies, and the subsidy under the PM Surya Ghar scheme.
• We provide reliable solar panel maintenance services so your system keeps working for years.
• We make sure your solar system for home price is not just affordable but also gives the maximum returns.

With Spectra Solar Power, you don’t just buy solar, you buy peace of mind.

Final Words

The debate of net metering vs gross metering may sound technical, but the idea is simple:

• Net metering = reduce your bill.
• Gross metering = sell your power.

For most Indian families, net metering is the smarter choice because it directly lowers electricity costs every month. For larger projects, gross metering works well.

At the end of the day, whether you go for net metering vs gross metering in India, what matters most is choosing the right partner to guide you. Spectra Solar Power is here to help with installation, subsidy applications, and after-sales service so that your journey to solar energy is smooth and rewarding.

Solar energy is the future, and with the right metering system, you can save more, earn more, and power your business or home with clean energy.