The Solar Billing Equation
When you have solar, your electricity bill can change because eligible solar generation may offset some of your grid electricity charges. The exact calculation depends on the applicable billing mechanism and utility rules.
Net Metering Billing
Net metering uses a bidirectional meter to record electricity imported from and exported to the grid. Solar generation can offset grid consumption according to the applicable net-metering rules.
How It Works
- • Bidirectional metering records grid imports and exports
- • Eligible solar exports can offset consumption under the applicable rules
- • Credits and settlement depend on the utility's approved tariff mechanism
- • Fixed charges and other applicable charges may still remain payable
Illustrative example — not a notified tariff
This is a simplified illustration. Actual bills may include fixed charges, taxes, tariff slabs, export rules, and other adjustments.
Virtual Net Metering (VNM) Billing
VNM separates the solar generation location from the customer's electricity consumption location. An eligible solar project generates electricity, and participating consumers receive allocations or credits according to the applicable program.
How It Works
- • Solar project generation is measured according to the applicable metering arrangement
- • Your subscription or allocation determines your eligible share
- • Applicable credits are reflected against your electricity account
- • No physical solar wiring to your individual premises is required for a remote project
Illustrative example — not a notified tariff
Actual VNM allocation, credit treatment and settlement are determined by the applicable regulatory order and DISCOM billing framework.
Official sources
Regulations, programme rules and financial assistance can change. Verify the current position with the responsible authority before relying on an estimate or entering an agreement.
Last regulatory review: September 2026
OERC
Community solarisation — Case No. 21 of 2024
The Odisha regulator’s case record for the DISCOM community-solarisation application.
View official source →TPWODL
Community Solarization application
The DISCOM filing describing the proposed allocation and Virtual Net Metering mechanism used as an Odisha example.
View official source →
Continue with the applicable framework
What Appears on Your Bill
A typical solar-enabled electricity bill can include the following components, although the exact presentation varies by utility and billing mechanism.
Energy Charges
Charges for electricity consumed from the grid, calculated according to the applicable tariff.
Solar Credits
Eligible credits or adjustments associated with solar generation.
Fixed Charges
Monthly service or fixed charges that may remain payable regardless of energy consumption.
Taxes and Levies
Applicable taxes, duties, or other regulatory charges.
Net Amount Payable
The final amount due after applicable credits, adjustments, and charges.
Billing Frequency & Settlement
Monthly Billing
Most utilities bill customers periodically, often monthly. Solar credits or adjustments may be applied based on eligible generation and the applicable billing rules.
Settlement
Some programs allow credits to roll over or provide periodic settlement. The treatment of unused credits depends on the applicable regulations and tariff order.
Net Metering vs. Gross Metering
Net metering generally offsets eligible consumption with electricity exported to the grid. Gross metering generally treats solar generation as electricity sold to the utility under an approved rate, with consumption billed separately. VNM and other managed-solar mechanisms have their own rules.
