Do I get paid in cash for surplus solar power?

In most states, no. The surplus is credited to your electricity bill. Some DISCOMs may pay at the end of the year if you have a large credit, but this is rare. Check your state's net metering policy.

What is the minimum system size for net metering?

There is no universal minimum, but most DISCOMs allow systems from 1 kW. The PM-Surya Ghar scheme provides subsidy for systems from 1 kW to 3 kW and above.

Can I sell power if I have a battery backup?

Yes, if you have a hybrid system that can export to the grid. A pure off-grid system with batteries cannot sell power because it is not connected to the grid.

How long does it take to get net metering approval?

After installation and inspection, the DISCOM usually installs the net meter within a few weeks. The subsidy processing takes around 15 days after the redemption request if all credentials are correct.

Will selling surplus power damage my solar panels?

No. Exporting power does not harm the panels. The inverter manages the flow, and the system is designed to operate safely in grid-connected mode.

Can I Sell Extra Solar Power to the Grid?

How selling surplus solar power works

When your rooftop solar system generates more electricity than your home uses, the extra power flows back to the grid. Under net metering, your DISCOM measures both the power you draw and the power you export. Your bill is settled on the net difference: you pay only for the units you consumed beyond what you exported, or you get a credit if you exported more.

This is not a cash sale in most states. You do not receive a cheque for your surplus. Instead, the exported units are adjusted against your consumption, usually within the same billing cycle. Some states allow the credit to roll over to future bills, but the rules vary by DISCOM.

To sell surplus power, you need a grid-connected (on-grid) solar system with a net meter installed by your DISCOM. Off-grid systems with batteries cannot export power. The process starts with an application to your DISCOM, followed by installation and inspection.

What you can earn from surplus power

The rate you get for exported power is set by your state's electricity regulator. It is often the same as the retail tariff you pay for consumption, but some states have a lower feed-in tariff. Check your DISCOM's net metering policy for the exact rate.

A 3 kW system will be able to generate more than 300 units a month on an average for a household. If your home uses less than that, the surplus can offset a large part of your bill. Through the PM-Surya Ghar: Muft Bijli Yojana, households will be able to save electricity bills as well as earn additional income through sale of surplus power to DISCOMs.

The scheme has been approved with a total outlay of Rs.75,021 crore for installing rooftop solar and providing free electricity up to 300 units every month for One Crore households. This means many homes can cover their entire consumption and still export power.

Rules and limits for selling to the grid

Net metering is available for systems up to a certain capacity, usually 10 kW for residential, but the limit varies by state. Your DISCOM must approve the connection before you can export. The process includes a feasibility check, agreement signing, and installation of a bidirectional meter.

You cannot sell power from a system that is not registered with the DISCOM. All rooftop solar systems under the PM-Surya Ghar scheme must be installed through the National Portal, where households will apply for subsidy and select a suitable vendor for installing rooftop solar.

The scheme provides a Central Financial Assistance (CFA) of 60% of system cost for 2 kW systems and 40% of additional system cost for systems between 2 to 3 kW capacity, capped at 3 kW. At current benchmark prices this means Rs 30,000 subsidy for 1 kW system, Rs 60,000 for 2 kW systems and Rs 78,000 for 3 kW systems or higher.

How to start selling surplus power

First, check your DISCOM's net metering policy. Then apply through the National Portal for the PM-Surya Ghar scheme. You will need to submit your electricity bill, property documents, and a technical feasibility report. After approval, choose an installer and get the system installed.

Once installed, the DISCOM will inspect the system and replace your meter with a net meter. Only after that can you export power. With all credentials entered correctly on the National Portal, the average time taken in processing the CFA is around 15 days after the redemption request made by the consumer.

Costs and financing for a grid-connected system

A 2 kW home solar system in India has a starting price range, with installation, of ₹1,75,000 to ₹2,13,000. A 3 kW system starts between about Rs. 2.15 lakh and Rs. 2.47 lakh. These prices are before subsidy.

Collateral-free loans are available from nationalized banks at a concessional interest rate of repo-rate plus 50 bps, i.e., 5.75% per annum for the present, with a tenure of 10 years. This makes it easier to pay for the system upfront and earn from surplus power over time.

What affects how much you can sell

Your export depends on your system size, your daytime consumption, and the net metering rules in your state. Homes that use little power during the day export more. The rise in demand is in line with the progression of summer conditions across the country, with electricity consumption witnessing a significant growth of 8.9% during the month of April 2026, which shows how much power homes need.

If your system is sized to cover your annual consumption, you may export in some months and import in others. The net metering settlement usually happens monthly or annually, depending on your DISCOM.

3 kW generation: More than 300 units a month on average for a household
Scheme outlay: Rs.75,021 crore for one crore households
Loan rate: 5.75% per annum, 10-year tenure
Subsidy: Rs 30,000 for 1 kW, Rs 60,000 for 2 kW, Rs 78,000 for 3 kW or higher
CFA processing time: Around 15 days after redemption request
April 2026 demand growth: 8.9% increase in electricity consumption

Indicative prices for grid-connected systems

2 kW on-grid residentialStarting price range, with installation ₹1,75,000–2,13,000 / system
3 kW on-grid residentialStarting price range, with installation ₹2,15,000–2,47,000 / system

Is selling surplus power worth it?

For most homes, the main benefit of rooftop solar is reducing your electricity bill. Selling surplus power adds a small income or credit, but it is not a get-rich scheme. The real value is that you use your own clean power and avoid paying high tariffs for grid electricity.

A 3 kW system costs between about Rs. 2.15 lakh and Rs. 2.47 lakh before subsidy. With the Rs 78,000 subsidy, the net cost drops significantly. Over the 25-year life of the system, the savings on bills and credits for surplus power usually recover the investment several times over.

Common questions about selling solar power

Many people ask if they can sell power without a battery. Yes, on-grid systems export directly to the grid without storage. You also do not need a separate meter; the net meter records both import and export.

Another question is whether you can sell power from a rented house. You need the property owner's consent and the electricity connection in your name or with a no-objection certificate. The DISCOM will check the ownership documents before approving net metering.

Finally, some ask if they can sell power to a private company. In India, you can only export to the DISCOM that supplies your area. There is no open market for small rooftop generators.