Net Metering in Punjab — How PSPCL Actually Credits Your Export
How net metering actually works for rooftop solar in Punjab: the bi-directional meter, how export is credited, and why surplus units are worth less than the ones you use.
Updated 9 June 2026
Net metering is mentioned constantly in solar conversations and rarely explained properly. Here is what actually happens at the meter itself.
A meter that counts in both directions
A standard electricity meter only counts what you draw from the grid. A net meter is bi-directional: it also counts what your solar system sends back to PSPCL when you generate more than you are using at that moment — typically the middle of a sunny day for most homes. Your bill is based on the net of these two flows over the billing cycle, not on your gross household consumption.
Why export is worth less than the units you use
This is the detail that trips up naive solar arithmetic. The rate PSPCL credits for exported surplus is set under PSERC’s net metering regulations, and it is not the same as the tariff rate you pay for the units you consume. Export is generally worth less, unit for unit, than self-consumption. This is exactly why sizing a system to cover 100% of your annual use — rather than to bring net usage to a sensible target — usually wastes money: the extra capacity mostly produces surplus exported at a lower rate, instead of savings at your actual tariff.
What this means for sizing
Our approach is to size a system so that most of what it generates is used directly or brought under Punjab’s 300-unit free-usage line, rather than maximised for gross export. A bigger system is not automatically a better one once export credit enters the picture.
Where the net meter fits in the process
The net meter is fitted and inspected by PSPCL as part of installation, and its inspection is the trigger for the commissioning certificate that moves the PM Surya Ghar subsidy process forward — see our subsidy guide and what happens on installation day for where this sits in the overall sequence.
One detail we always confirm
Whether Punjab’s 300 free units apply to your gross consumption or your net consumption after solar changes the maths for homes near that line. We check this against real, post-installation bills for the connection type before quoting, rather than assuming.
Questions we are asked
What is net metering?
A bi-directional meter that records both the power you draw from PSPCL and the surplus power your system exports back to the grid. Your bill is based on the net of the two, not on your gross consumption alone.
Is exported power worth the same as the units I buy?
No. Export is settled under PSERC's net metering rules at a rate that is not the same as your consumption tariff, and is generally worth less. This is exactly why oversizing a system to export more is usually not the efficient choice.
Do I need to apply for the net meter separately from the subsidy?
They run through the same PM Surya Ghar process for a home system, but the net meter installation and inspection is its own distinct milestone — the point at which PSPCL physically fits the meter and signs off before commissioning.