Net Metering in Gujarat 2026: Complete Guide for Solar Users

Solar panels generate electricity all day, but you don't use as much electricity as they make. This is especially true in a state like Gujarat, which now has 47,178 MW of installed renewable capacity and the country's highest rooftop solar capacity at 6,881 MW. Instead of letting extra electricity made during the day go to waste, Gujarat's net metering policy lets solar users with systems from 1 kW up to 1 MW get value for every extra unit their system produces. 

What is Net Metering and How It Works in Gujarat?

Net metering is a billing arrangement that lets you get credited for the solar power you export to the grid.

A bidirectional meter replaces your old one, recording:

1. Units drawn from the grid.

2. Units sent back to the grid.

During the day, any power you don't use straight away is sent back into the grid. At night or on cloudy days, you draw power normally as before.

At the end of each billing cycle, GUVNL and its four DISCOMs (UGVCL, DGVCL, MGVCL, PGVCL) compare your total import against export. You only pay for the net difference, which is what makes net metering for solar so valuable.

GUVNL Net Metering Policy & Regulations

Gujarat's framework runs on rules notified by the Gujarat Electricity Regulatory Commission, with GUVNL's DISCOMs handling execution.

1. Net metering is available for systems from 1 kW up to 1 MW capacity.

2. Your system size cannot exceed your sanctioned electricity load.

3. Installation must use BIS-certified equipment through a GEDA-empanelled vendor.

4. No wheeling charges or cross-subsidy surcharge apply in Gujarat, a genuine advantage over several other states.

5. Surplus units unused within the billing year are compensated at rates fixed periodically by GUVNL.

GERC has set the surplus export compensation rate at ₹2.25/kWh for residential consumers, with annual settlement done by DISCOMs. Additionally, GERC released draft DRES Regulations 2026 in June 2026 — proposed to replace the existing 2016 framework — introducing five metering mechanisms: Net Metering, Net Billing, Gross Metering, Group Net Metering, and Virtual Net Metering, with project size limits expanded up to 1 MW for net metering and up to 4 MW for gross and virtual net metering.

The DISCOM responsible for your application depends on your location: DGVCL for Surat, UGVCL for Ahmedabad, MGVCL for Vadodara, and PGVCL for western Gujarat.

Application Process for Net Meter

Getting net metered in Gujarat follows a structured sequence:

1. Submit your application online or at the nearest DISCOM division office with your consumer number and system specifications.

2. The DISCOM conducts a feasibility check, typically within 7-15 working days.

3. Your empanelled installer completes the solar installation.

4. The DISCOM inspects the site and installs the bidirectional meter.

5. Commissioning is confirmed, and billing begins from the next cycle.

In every billing cycle, imported and exported units are adjusted to calculate your net consumption. Surplus exports carry forward as credit. At the annual settlement, any unused surplus gets compensated at GUVNL's notified rate rather than rolling over indefinitely.

Benefits of Net Metering

• You pay for net consumption, not gross usage, so every surplus unit still counts in your favour.

• No need for expensive battery storage, since the grid acts as your storage bank.

• Meter installation is handled by the DISCOM as part of the standard process.

• Zero wheeling and cross-subsidy surcharge improves your overall returns.

• Capacity can scale with your business growth, up to 1 MW, without switching arrangements.

As of 2026, surplus solar units exported to the grid are settled annually at GERC-approved buyback rates of approximately ₹2–3/kWh (DGVCL export tariff: ~₹2.25/unit). This makes right-sizing your system to match consumption the most financially efficient approach — oversizing purely for export yields lower returns than offsetting grid purchases at ₹3.05–₹5.50/unit domestic tariffs.

Net Metering vs Gross Metering

Under net metering, you consume your own solar power first, and only the surplus gets exported and credited. Your bill reflects the net of import and export.

Under gross metering, every unit generated gets exported and sold at a fixed feed-in tariff, while you separately buy all the power you consume at regular tariff. This suits standalone solar generators selling electricity as a business.

For most textile mills, factories, and commercial users in Gujarat, net metering remains the more practical and rewarding choice.

Common Issues and Solutions

1. Feasibility delays beyond the prescribed timeline: Escalate to GERC if your DISCOM doesn't respond within the notified window.

2. Mismatch between sanctioned load and system capacity: Get your load enhanced first if your solar plan exceeds current sanctioned load.

3. Faulty bidirectional meters: Request a re-inspection and replacement through your DISCOM's technical division.

4. Confusion over settlement rates: Check GUVNL's periodic tariff notifications rather than relying on outdated figures.

5. Incomplete documentation slowing approvals: Work with a GEDA-empanelled installer who handles paperwork correctly the first time.

Future of Net Metering in Gujarat

Gujarat continues tightening timelines and expanding digital tracking, with the SURYA Gujarat portal now offering more transparency alongside the national PM Suryaghar platform. As processing speeds improve across all four DISCOMs, net metering is becoming an even smoother and more predictable part of investing in solar.

GERC released DRES Regulations 2026 draft proposing three major additions: 

1. Virtual Net Metering up to 4 MW, enabling solar generation at one location to be credited across multiple consumer connections within the same DISCOM area; 

2. Group Net Metering in the 6 kW–1 MW range; and 

3. Mandatory Battery Energy Storage Systems (BESS) for consumers with contract demand above 100 kW who install DRES capacity beyond their contracted demand. The draft also proposes a penalty of not less than ₹500 per day payable by the DISCOM for unjustified delays in net meter commissioning — a first-of-its-kind consumer protection clause in Gujarat. 

GERC’s FY 2026–27 tariff order (effective April 1, 2026) kept base electricity rates unchanged and raised the pre-paid smart meter rebate from 2% to 3% on energy charges.

Get the Most from Net Metering 

Net metering in Gujarat is what turns a solar installation from a simple cost-cutting measure into a genuinely efficient energy asset. Understanding GUVNL's rules, the application process, and your settlement cycle helps you get full value from every unit your system generates.

At JJPV Solar, we handle the entire net metering application and bidirectional meter process for our customers across Gujarat's DISCOMs. Get in touch for a free site assessment and a clear walkthrough of what net metering means for your specific consumption pattern.