Solar Billing Explained: Credits, Units, and Savings

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Published: 03 Nov, 2025 | By Solar

Whenever we think about solar energy, the first question that comes to mind is “Will it really reduce my electricity bill? And the answer is yes. But to understand how solar panels and electricity bills are connected, we need to learn about something called solar billing.

In India, more and more families are installing rooftop solar panels for homes. But many still feel confused when they look at their electricity bill after installing solar. The reason is simple, the billing system for solar is slightly different from normal electricity billing. Don’t worry, in this article we’ll explain everything in simple words:

  • What is solar billing?
  • How does solar billing work in India?
  • What are solar billing credits?
  • How is solar energy units calculation done?
  • How much solar billing savings for homeowners is possible?

And finally, we’ll also see how Spectra Solar Power helps families and businesses save more with solar.

What is Solar Billing?

Solar billing is the system that tells you how much electricity your solar panels for home generated, how much of it you used, and how much you saved on your electricity bill.

When you install a solar system, you don’t completely disconnect from the electricity grid unless you go for an off grid solar system. Instead, your solar system works with the grid.

Here’s how it works in simple terms:

  • Daytime – Your rooftop solar panels generate electricity using sunlight. You first use this electricity in your home.
  • Extra units – If your solar system produces more power than you need, the extra units go back to the electricity grid.
  • Nighttime – When the sun sets and your panels stop producing, you take electricity back from the grid.

Now, to track this give-and-take, electricity companies use a billing method called net metering solar bill or sometimes gross metering. This is what makes solar billing different from normal electricity bills.

How Does Solar Billing Work in India?

In India, most states follow the net metering solar bill system. Under this, you only pay for the “net” electricity you used.

For example:

  • Your solar panels generated 300 units in a month.
  • Your house consumed 250 units.
  • That means you have 50 extra units. These go to the grid.

At the end of the month, your electricity bill will show that you consumed zero units from the grid. In fact, you will get solar billing credits for the extra 50 units, which will adjust in your future bills.

This is why people say solar panels reduce electricity bills drastically.

Some states also offer gross metering, where all the solar power you produce goes directly to the grid, and you are paid for it. In return, you buy electricity from the grid like usual. We will explain the difference later, but for most homeowners in India, net metering is more beneficial.

What is Solar Billing Credits?

what-is-solar-billing-credits

One of the most important parts of solar billing is credits.

Let’s say your solar panels produced more electricity than you needed in April. Those extra units are not wasted. Instead, the electricity company gives you “credits.”

  • These credits will be shown in your next bill.
  • If your consumption is higher in May (say, summer months with fans, ACs, etc.), those credits will automatically reduce your bill.
  • This way, you save money without worrying about seasonal changes in sunlight.

This credit system is the heart of solar billing savings for homeowners.

Solar Energy Units Calculation Explained

People often ask: “How will I know how many units my solar system is producing?

The calculation is simple.

1 kW of a rooftop solar panel for homes in India generates around 4 units per day on average.

So if you install a 5 kW solar system for home, you will get:
5 kW × 4 units = 20 units per day.
That means around 600 units per month.

If your monthly electricity usage is 500 units, you will not only cover your needs but also get 100 units of credit.

This is why installing the right size solar system is very important. Companies like Spectra Solar Power guide you on the right size after studying your bill and roof space.

How Do Solar Panels Lower Electricity Bills?

This is the biggest benefit everyone looks for. The truth is: installing solar is like fixing your electricity bill for the next 20–25 years.

Here’s why:

  • Without solar: If you consume 500 units, you pay the full bill to your electricity company every month.
  • With solar: Your rooftop system produces most of these units for free. You only pay for small charges, if any.

This way, solar ensures you are less affected by rising electricity rates every year.

And if you choose the right provider, like Spectra Solar Power, your savings can start from the very first month.

Net Metering vs Gross Metering in Solar Billing

To fully understand solar billing, let us compare net metering solar bill with gross metering.

  • Net Metering: Best for households. You use solar first, then give excess to the grid. Your bill is reduced by adjusting units.
  • Gross Metering: More common for large businesses. Here, all solar power goes to the grid. You get money for every unit supplied, but you still buy electricity for your own use.

In short:

This is the major difference between net metering and gross metering.

Solar Billing Savings for Homeowners

solar-billing-savings-for-homeowners

For an average family in India paying ₹2,000–₹3,000 in electricity bills every month, a good solar system can reduce the bill to almost zero.

Imagine this:

  • You install a 5 kW solar system for home.
  • Your electricity bill drops by 80–100%.
  • Your savings every year are around ₹25,000–₹35,000.
  • In 4–5 years, your investment in solar is fully recovered.

After that, all the savings are your profit. That’s why many call solar “the best investment for families.

Subsidies and Support for Solar Billing

The government of India is also pushing solar adoption. Under the PM Surya Ghar scheme, families can get subsidies that make the solar system for home price more affordable.

There are also state wise solar subsidies that further reduce the cost. This means, whether you’re in a metro or a tier 2/3 city, solar is now within reach.

Spectra Solar Power helps you understand these solar schemes and ensures you get the maximum subsidy possible.

Why Choose Spectra Solar Power?

When it comes to solar, choosing the right company is as important as choosing the right system.

Spectra Solar Power is among the trusted names in the industry because:

  • They provide customized solutions for rooftop solar panels for homes and businesses.
  • They offer guidance on solar billing, subsidies, and net metering paperwork and with subsidies and even state-wise solar subsidy.
  • They install high-quality systems at the best possible solar system for home price.
  • Their service covers everything from installation to solar maintenance service.

With their support, families and businesses can easily shift to solar without confusion and contribute to the solar energy future in India.

Conclusion

To sum up, solar billing is the method that makes solar savings possible. By understanding credits, units, and savings, you can clearly see how solar reduces your bills.

  • Net metering solar bill is best for homeowners.
  • Gross metering works well for businesses.
  • Solar panels reduce electricity bills drastically in the long run.

And with subsidies under the PM Surya Ghar scheme and state wise solar subsidies, the solar system for home price has become much more affordable.

If you’re planning to install solar, connect with Spectra Solar Power as the best solar panel company in india. With the right advice and system, you can enjoy the real benefits of solar, lower bills, more savings, and a brighter future.

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