What is the Net Metering Policy in Madhya Pradesh in 2025? Explore Key Rules and Steps to Apply

The net metering policy in Madhya Pradesh is the government policy that has given MP residents the right to generate their own renewable power through rooftop solar systems and connect it to the state’s distribution grid. According to state rules, as outlined in MPERC (RG-39 of 2024) regulations, consumers can install grid-connected solar systems of up to 500 kW under the MP net metering policy. 

Anyone who already had a grid-connected solar system larger than 500 kW before the new MPERC rules came into effect can continue to use net metering benefits. 

Under the MP net metering policy, the solar electricity generated by the rooftop solar system is used in the following ways:

• Consumers use the energy generated for their own needs first.
• Any surplus energy left is exported to the grid. 
• Consumers receive credits for the electricity they export, which can be adjusted against their electricity bills.

This unit exchange between the grid and the solar system is tracked and recorded by the bi-directional net meter or smart meter. The MP net metering policy also clearly states that energy credits are settled annually, not monthly. The annual settlement happens in September in MP. At the time of the annual settlement, if the consumer has any leftover credits, the DISCOM calculates the credits against the rate set by APPC for that year. The final amount is adjusted against the next bill. 

In this blog, we will spill all the beans about the net metering policy in Madhya Pradesh, key aspects of the policy that you should know as a consumer of solar energy, objectives of this policy, steps to apply for a net meter in MP, and the cost of installing a solar energy meter. 

We will also break down the cost of installing an on-grid rooftop solar panel system for homes in Madhya Pradesh and compare it with the return on investment that homeowners get.

TL;DR Summary Box: What Are the MPERC Grid-Connected Net Metering Regulations in 2025?

The latest MPERC grid-connected net metering regulations and rules were issued in the MPERC RG-39 memo, dated 14th March 2024, in MP. According to the new MP net metering policy rules, all categories of consumers, ranging from domestic to commercial and industrial, can apply for net metering. The only requirement is that the system capacity must not exceed the sanctioned load or contract demand of the consumer.

As per the net metering policy in MP, here are some clear rules: 

• Maximum installation capacity: The government allows the installation of solar systems up to 500 kW under net metering. 
• Annual credit settlement: The settlement year runs from October to September. At the end of this cycle, any leftover credit units are converted into their monetary value at the Average Power Purchase Cost (APPC) for that year. This amount is not paid to you in cash. Instead, it is credited on your next electricity bill, reducing the amount you have to pay. After this adjustment is applied, your carried-forward credit units are reset to zero at the start of the new settlement period.
• Restrictions on sale: Electricity generated under net metering cannot be sold to third parties. The energy is strictly for self-consumption or for settlement with the DISCOM. 

Here are the main topics covered in this blog in detail:

What is the Net Metering Policy in Madhya Pradesh?

The net metering policy in Madhya Pradesh is a policy that allows all state residents, including residential, commercial, and industrial users, to use grid-connected rooftop solar systems to generate clean electricity for their own use. According to this policy, net metering is permitted for solar systems with a capacity of up to 500 kW. 

The solar electricity produced by the grid-connected solar system under the net metering policy in Madhya Pradesh can be used only in certain ways:

• You can use it for self-consumption: As a consumer, all the electricity your solar system produces is yours. It will be used to fulfill all your energy needs.
• If there’s surplus energy left, it will be sent to the grid: You can’t commercially sell the electricity generated by the solar system under the net metering policy in Madhya Pradesh. The surplus strictly goes to the grid. 
• You get credits for surplus energy exported to the grid: These credits are settled annually in MP. The financial year runs from October to September. So, if in September there are any leftover credits indicating that you sent more electricity to the grid than your system imported, the DISCOM will purchase that electricity from you at APPC rates.
• Annual financial settlement doesn’t mean you will receive money in exchange for the credits: The amount calculated based on the APPC rates is credited on your next electricity bill, reducing the amount you have to pay. The carried-forward credit units are always reset to zero when the new settlement year starts in October.

Homeowners and housing societies installing rooftop on-grid solar systems under the net metering policy in MP are also eligible to receive a solar subsidy under the PM Surya Ghar Muft Bijli Yojana. 

According to the net metering regulations, all solar systems must comply with the Central Electricity Authority (CEA) and Grid Code requirements. 

Key technical conditions include:

• Automatic synchronizing equipment.
• Inverters with anti-islanding protection and harmonic control.
• Safety mechanisms are in place to protect both the solar system and the grid.

Key Aspects of MP Net Metering Policy 

According to the MP net metering policy, it’s mandatory to install a bi-directional net meter or smart meter to record both imports from the grid and exports to the grid. Each bill clearly shows the amount of electricity consumed, the amount exported, the net balance, and any carry-forward credits. 

Here are the key aspects of the MP net metering policy that you must know as a consumer: 

• You have an obligation to pay certain fixed charges, such as the net meter charge: Even when generating your own power, you must still pay fixed charges, demand charges, and other fees as specified in the retail tariff orders. Net metering does not waive these payments. 
• You can’t sell solar electricity generated by your system to a third party: If there is any surplus power generated by the system that isn’t consumed at your property, it will be sent to the grid. The DISCOM will give you credits for the extra energy you supply to the grid.
• A technical feasibility check to install a net meter will only be conducted for solar systems exceeding 10 kW: If the system you’re installing is below 10 kW, approval is given automatically. For systems exceeding 10 kW, the DISCOM conducts a technical feasibility survey. Once cleared, you can proceed with installation and grid integration.
• You will still pay peak charges if you use power during peak hours: If you are on a Time-of-Day tariff, imports and exports are tracked in their own time blocks. Netting happens block by block, and peak-hour charges still apply.
• If you’re a residential customer, you can claim a subsidy: As per the net metering policy in Madhya Pradesh, rooftop solar systems for housing societies and homes can be installed at cheaper rates because residential customers can apply for a solar subsidy under the PM Surya Ghar Muft Bijli Yojana. The maximum subsidy is capped at Rs. 78,000 for homeowners and Rs. 90 lakh for housing societies. This subsidy is not given for installing grid-connected commercial rooftop systems, as it’s only for residential customers. 
• If you are an industry, your on-site solar counts toward your RPO, but you don’t get paid extra for it: The renewable energy you generate and use at your factory is credited toward your Renewable Purchase Obligation. Any extra energy that goes to the grid is credited toward the DISCOM’s RPO. This is an accounting rule for compliance purposes only and does not entitle you to an additional payment. 
• A single-phase connection is only suitable for very small rooftop systems: If your plant is up to 5 kW, the DISCOM will connect it to the grid on a single-phase line, which is the same type of connection most homes have.
• A three-phase connection is required if your rooftop solar plant in Madhya Pradesh is larger: For systems above 5 kW and up to 112 kW, a three-phase supply is necessary. A 3-phase connection is more stable and is used for larger homes, apartments, commercial shops, and medium-sized industries.
• High-tension (HT) level connections are required for large-scale solar systems: If your system is above 112 kW and up to 500 kW (the maximum allowed under the net metering policy in MP), it must be connected at the high-tension (HT) level. This is the same supply level industries usually get and ensures the grid can safely handle large injections of solar power.

Here’s a table that explains the type of electricity connection the DISCOM will provide based on the size of your solar system under the net metering policy in Madhya Pradesh.

How Does Solar Net Metering Work?

Solar net metering is a process that allows you to generate clean solar electricity using solar radiation as the fuel, while you’re still connected to the grid. Solar panels in the solar system generate free electricity in DC form. This DC is converted to AC by a solar inverter, and the generated power is used to meet your energy requirements. 

• If any excess energy is generated: If there’s surplus electricity produced by the solar panels that is not consumed in real-time, it is sent to the grid. 
• The system imports electricity at night: Whenever needed, at night or on a cloudy day, you can import electricity from the grid and continue running all your appliances as usual.

This import and export is continuously tracked and recorded by the bidirectional net meter or smart meter, and the entire process is referred to as net metering. Based on whether you exported more units to the grid or imported more units, the DISCOM gives you either credits or a solar bill.

Let’s check out the entire process, as it happens, in simple steps:

• Step 1 – Solar panels generate electricity: Solar cells in solar panels capture and convert sunlight into direct current (DC) output. 
• Step 2 – DC is converted to AC: A solar inverter receives DC input from the panels and converts it to alternating current (AC), which is the form of electricity suitable for homes and the grid.     
• Step 3 – Excess energy not consumed is sent to the grid: Surplus energy that you do not consume in real-time is sent to the grid. 
• Step 4 – Additional units can be imported from the grid for nighttime usage: Since net metering connects your system to the grid, you can import power whenever required.
• Step 5 – Your monthly bill shows the net result: At the end of the month, the DISCOM calculates your bill by netting imports against exports. If exports exceed imports, the surplus is carried forward to the next month.
• Step 6 – You get credits if you supplied more units to the grid: If you exported more power than you imported, the net meter has a record of that. The DISCOM gives you credits for that. However, these credits are not settled every month as per the rule under the net metering policy in MP. Instead, at the end of the settlement year (October to September), leftover credits are valued at the Average Power Purchase Cost (APPC) and adjusted against your next bill.
• Step 7 – You pay the bill if you imported more units than you sent to the grid: If you use more grid electricity than the solar electricity you supplied, the net meter records that too. Based on that, the DISCOM generates a solar bill. You pay only for the additional units at the regular electricity tariffs in your city. 

At What Rate Does the DISCOM Settle Credits in Madhya Pradesh?

In Madhya Pradesh, the DISCOM settles your surplus solar credits annually at the Average Power Purchase Cost (APPC). For the current year, this rate is Rs. 2.14 per unit (kWh). This means that the electricity you export to the grid and don’t use by the end of the annual cycle is converted into a monetary value at this rate.

If you end the October-September cycle with, say, 100 units surplus, the DISCOM values it at Rs. 2.14/unit = Rs. 214 and deducts Rs. 214 from your next bill. After this adjustment, your carried-forward units reset to zero for the new year. As per the net meeting policy in Madhya Pradesh, credits are not paid in cash. They’re used to reduce your bill. 

Here’s a simple table we’ve made for demonstration purposes only to explain further how the DISCOM settles credits annually based on the net meeting policy in MP:

*Please note: APPC updates its rates every year, and they’re different for different cities. The APPC rate in MP might not be the same as the APPC rates in Maharashtra. 

The value of your surplus units is not given to you as cash. Instead, it is directly deducted from your next electricity bill. This means your payable bill amount goes down by the adjustment value. Once this deduction is made, your surplus unit balance is reset to zero at the start of the new settlement year.

For example, if your bill for October is Rs. 600 and you had Rs. 214 worth of surplus credits from the previous year, your payable bill will be 600 – 214 = Rs. 386.

Who is Eligible for the Net Metering Policy in MP?

All MP residents, whether residential, commercial, or industrial, are eligible to apply for net metering for systems up to 500 kW under the net metering policy in Madhya Pradesh. 

You just have to meet the following criteria: 

• You must have an active electricity connection in your name: Net metering is linked to your existing DISCOM account. Therefore, you must have a valid electricity connection registered under your name.
• You must legally own the rooftop or property: The site where the solar system will be installed should be in your name. Proof of ownership is required at the time of approval.
• MNRE/DISCOM guidelines must be followed without a glitch: Solar panels, inverters, earthing, and both AC and DC distribution boxes must be installed as per the technical guidelines issued by MNRE and your DISCOM.
• Your solar system must be grid-tied: Net metering is only available for grid-connected solar plants. Off-grid solar systems are not eligible for this facility.

What Are the Objectives of the Net Metering Policy in Madhya Pradesh?

The state introduced the net metering policy to achieve clear goals. It aims to encourage households and industries to generate their own clean power, reduce their reliance on costly grid electricity, lower pollution, and contribute to India’s energy independence. The policy also aims to strengthen the grid and create local jobs while building a long-term, sustainable energy base for Madhya Pradesh.

Here’s a look at all the objectives of the net metering policy in Madhya Pradesh in detail:

• Encouraging more people to adopt solar: Residential consumers, businesses, and industries are encouraged to set up renewable solar systems and participate directly in power generation.
• Reducing the state’s reliance on imported fossil fuels: By generating more electricity from sunlight, MP relies less on coal and imported fuels.
• Reducing load on the grid: As more people rely on solar electricity, the load on the grid decreases. This solves the issue of grid failure and power outages. 
• Improving voltage at the far end of the grid: Local generation supports healthier voltages on long feeders and reduces stress on busy lines.
• Lowering carbon emissions: Unlike traditional fossil fuels, which cause pollution while generating electricity, solar systems do not emit carbon dioxide during operation. This makes the air cleaner and improves the air quality index. 

How to Apply for Net Metering in Madhya Pradesh? Step-by-Step Process

You can start your rooftop solar and net metering request in Madhya Pradesh on the PM Surya Ghar National Portal. For home systems up to 10 kW, the roof is treated as deemed feasible. It means that you do not wait for a DISCOM site check. Approval is considered granted under the Electricity (Rights of Consumers) Rules, 2020.

For systems above 10 kW, your DISCOM first carries out a technical feasibility check. After it is approved, you choose an empanelled installer for your DISCOM on the portal. The installer sets up the plant and files the net metering application on your behalf. 

Let’s check out the entire application process in simple steps: 

• Step 1 – Create your account and apply: Register on the PM Surya Ghar National Portal and submit your rooftop solar application.
• Step 2 – DISCOM checks the technical feasibility (TF) for systems above 10 kW: For systems up to 10 kW, the roof is deemed feasible under the Electricity (Rights of Consumers) Rules, 2020. Hence, no site visit is needed at this stage. For systems above 10 kW, your DISCOM reviews the site and connected load. If everything meets the norms, you receive technical feasibility (TF) approval on the portal or by email.
• Step 3 – Choose an empanelled installer: Pick a solar company listed for your DISCOM area on the portal. Share your proposed system design and any additional documents the DISCOM may request.
• Step 4 – The solar installation company installs the solar system and uploads system details: Once the system is installed, all installation documents are uploaded on the PMSGY National Portal. This usually includes the system specifications, photos, drawings, and compliance records.
• Step 5 – The DISCOM arranges for a site inspection: DISCOM officials visit your premises to check safety, standards, and readiness for grid interconnection. They clear the project if it meets the technical rules.
• Step 6 – The net metering system is installed: After approval, the DISCOM installs a bi-directional net meter or enables the export feature on your existing smart meter. Once this is done, the system can be switched on.
• Step 7 – Commissioning is shown on the portal: The DISCOM updates your meter details online. Your commissioning certificate is available for download in your portal account.
• Step 8 – You receive a subsidy under the PM Surya Ghar Muft Bijli Yojana: If you are eligible under PM Surya Ghar Muft Bijli Yojana, enter your bank details and upload a cancelled cheque on the portal. After verification, the subsidy is transferred to your bank account within 30 days.

What is the Cost of a Net Meter in Madhya Pradesh?

The cost of a net meter in Madhya Pradesh is not fixed. It varies from city to city and from one DISCOM to another. 

Here’s a snapshot of the estimated cost of a net meter in different cities in MP:

*Please note: The cost of the net meter varies widely across cities and DISCOMs and can change without notice. The figures shared here are indicative only and may vary by city, sanctioned load, phase (single vs. three-phase), meter type (net vs. smart), make/model, stock, and current DISCOM policy. Always confirm the latest price, inclusions/exclusions, and process with your local DISCOM. This information is not a quotation, as actual prices can significantly vary.

How Much Does it Cost to Install an On-Grid Rooftop Solar Plant in Madhya Pradesh? 

The cost of installing an on-grid rooftop solar system in MP depends on whether or not you’re eligible for a subsidy. For instance, the installation cost for a 2 kW solar system can range from ~Rs. 1.75 lakh* to ~Rs. 1.85 lakh* without a subsidy. After subsidy, the same solar system will cost between ~Rs. 1.15 lakh* to ~Rs. 1.25 lakh*. 

*Please note: The above-mentioned solar plate price for on-grid solar systems is indicative as of 3rd October 2025 for the SolarSquare Blue 6ft variant without a subsidy. The final cost of installing an on-grid rooftop solar panel system at home depends on your DISCOM charges, whether you are eligible for a subsidy, the product variant opted for, the panel type, the inverter type, the mounting structure height, the type of after-sales service, the savings guarantee, the roof height, etc. Prices are subject to change. 

Here’s the cost of installing a solar system in Madhya Pradesh without a subsidy under the PM Surya Ghar Muft Bijli Yojana:

*Please note: The above-mentioned solar plate price for on-grid solar systems is indicative as of 3rd October 2025 for the SolarSquare Blue 6ft variant without a subsidy. The final cost of installing an on-grid rooftop solar panel system at home depends on your DISCOM charges, whether you are eligible for a subsidy, the product variant opted for, the panel type, the inverter type, the mounting structure height, the type of after-sales service, the savings guarantee, the roof height, etc. Prices are subject to change. 

What is the Solar Subsidy in MP?

Residential customers of solar energy in MP are eligible to receive a subsidy under the PM Surya Ghar Muft Bijli Yojana, which significantly reduces the cost of installing a solar system. 

If, you’re a homeowner in MP, here are the subsidy details applicable to you:

• Solar panel subsidy in India for 1-2 kW solar systems: Rs. 30,000 per kilowatt
• Solar panel subsidy in India for additional capacity over and above 2 kW up to 3 kW: Rs. 18,000
• Solar panel subsidy in India for 3 kW or higher capacity: Rs. 78,000

Based on the details above, we’ve broken down the exact amount of solar subsidy in MP for different capacity solar systems. Have a look!

Cost of Installing an On-Grid Rooftop Solar System in Madhya Pradesh With Subsidy

Here’s a look at the final rates you’ll have to pay to install a solar system in MP after you receive the subsidy assistance:

*Please note: The above-mentioned solar plate price for on-grid solar systems is indicative as of 3rd October 2025 for the SolarSquare Blue 6ft variant. The final cost of installing an on-grid rooftop solar panel system at home depends on your DISCOM charges, product variant opted for, panel type, inverter type, mounting structure height, type of after-sales service, savings guarantee, roof height, etc. Prices are subject to change. 

Cost of Installing an On-Grid Rooftop Solar System in Bhopal vs ROI 

Wondering how much money a rooftop solar system can save in its lifespan of 25 years? You can use SolarSquare’s free solar panel calculator to get an idea of the cost of installing a solar system in your city versus the money it will save you over 25 years.

For demonstration purposes, we’ve created this table to walk you through the system installation cost in Bhopal vs the solar savings you can make in 25 years:

*Please note: The above-mentioned solar panel price in Bhopal with subsidy is indicative as of 3rd October 2025 for the SolarSquare Blue 6ft variant. The final price of solar panel installation in Bhopal depends on your DISCOM charges, city, product variant opted for, panel type, inverter type, mounting structure height, type of after-sales service, savings guarantee, roof height, etc. Prices are subject to change. Additionally, when calculating savings, we have considered an annual tariff escalation of 3% and an annual degradation of 1%. The actual final savings from a solar system depend on the types of solar panels you’ve installed and their efficiency, intensity of sunlight your rooftop receives, orientation of the panels and tilt angle, the pollution level and weather conditions in your city, the temperature, shadow on the roof, impact of dirt/dust, and how well you maintain your panels after installation.

Conclusion 

The net metering policy in Madhya Pradesh provides a clear way to reduce your power bills with rooftop solar while remaining connected to the grid. You can install systems up to 500 kW under this policy. A bi-directional meter records what you take from the grid and what you send back. Billing is netted monthly, and any remaining credits are settled annually at the APPC rate.

If you’re looking to install a solar system on your rooftop and have questions about it, you can book a free solar consultation call with SolarSquare.

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FAQs

Q1. How is the net metering bill calculated?

Ans. Your bi-directional meter records what you import from the grid and what you export. Each month, the bill nets these units. Any surplus you export carries forward within the year. At year-end, the leftover is valued at APPC rates and deducted from your next bill.

Q2. What is the limit of net metering in MP?

Ans. You can install up to 500 kW under the net metering policy in Madhya Pradesh. Your system size must also be within your sanctioned load or contract demand, whichever is lower.

Q3. What is a net metering tariff?

Ans. There isn’t a special monthly net metering tariff per se. You pay the normal electricity tariff in your city for any net imports. Surplus units are settled once a year at the APPC rate, and that value is adjusted against your next bill. You will not be paid in cash.

Q4. What are the benefits of net metering in MP?

Ans. The most important benefits of net metering in MP include lower electricity bills through self-consumption, credits for surplus export, and reduced stress on the grid, which stabilizes the voltage and fixes the problem of power outages. Additionally, homes and housing societies are also eligible to receive a subsidy for installing on-grid rooftop solar systems under the net meeting policy in MP.

Q5. What are the disadvantages of net metering?

Ans. The main disadvantage is revenue loss to the DISCOM. When customers use more of their own solar and export surplus, the DISCOM sells fewer units and finds it harder to recover fixed grid costs.