Net metering is the mechanism that makes solar truly worthwhile in Bangalore — it allows you to earn credits for every unit of surplus solar electricity you export to the BESCOM grid. Here is how it works, what the rates are, and how to get connected.
What is Net Metering and How Does It Work?
When your solar panels produce more electricity than your home needs at any moment, the surplus flows back through your electricity meter into the BESCOM distribution grid. A bidirectional (net) meter records both the electricity you import from the grid and the electricity you export to it.
At the end of each billing cycle, BESCOM calculates your net consumption — units imported minus units exported. If your exports exceed your imports in a month, the surplus is carried forward as a credit for up to 12 months. At the end of the settlement year, any remaining surplus is paid out by BESCOM at the applicable export rate.
BESCOM Net Metering Rates and Billing
| Direction | Rate | Notes |
|---|---|---|
| Import (grid → home) | ₹3.05–₹8.50 per unit | BESCOM slab tariff based on monthly units |
| Export (solar → grid) | ₹3.50–₹4.50 per unit | Fixed rate set by KERC (Karnataka Electricity Regulatory Commission) |
| Net bill calculation | Import charges − Export credits | Billed monthly; credit carried forward 12 months |
| Year-end surplus payment | At export rate | Credited to bank account or adjusted in next year |
Because BESCOM's highest import tariff slab (₹8.50/unit for 500+ units/month) is significantly higher than the export rate, high-consumption homes benefit most when solar offsets their consumption directly — the "self-consumption" savings are worth more per unit than what you earn from export.
The Net Metering Application Process
- Solar system installation by an MNRE-registered installer (required before applying)
- Submit application to BESCOM — online via bescom.org or through your installer. Required documents: installation certificate, inverter specification sheet, single-line diagram, copy of your BESCOM bill.
- Technical inspection — a BESCOM engineer visits to inspect the installation and verify safety compliance.
- Bidirectional meter installation — BESCOM replaces your existing meter with a net meter (at no cost to you). This typically takes 30–60 days from application.
- System commissioning — BESCOM issues a commissioning certificate. Your system is now officially live and net metering is active.
Sizing Your System for Net Metering
BESCOM allows a net metering connection up to your sanctioned load — the maximum electrical demand allowed by your connection. A typical residential LT connection of 5 kW allows up to 5 kW of solar. If you want to install more, you need to upgrade your sanctioned load first.
The general best practice is to size your solar system so that annual solar generation equals annual consumption. Generating significantly more than you consume results in unrecovered credits since BESCOM's year-end payout rate is lower than the effective self-consumption saving rate.
What Happens to Your Bill in Practice?
Consider a Bangalore homeowner consuming 500 units/month with a ₹4,000 bill. After installing a 5 kW solar system generating 650 units/month:
- Solar self-consumption: ~400 units (generated when home has load)
- Solar export: ~250 units (generated when home is empty or load is low)
- Grid import: ~100 units (night and rainy evenings)
- Net bill: 100 units imported × ₹8.50 = ₹850 import cost, minus 250 units × ₹4.00 = ₹1,000 export credit = net credit of ₹150
Result: A ₹4,000/month bill effectively becomes zero — or even a small credit — for 8–9 months of the year.