SolarSavings
Understanding KERC Regulations: Net Metering vs Net Billing (2026)
Karnataka's solar policy has a unique, critical rule based on system size that every homeowner must understand before purchasing a system. The KERC (Karnataka Electricity Regulatory Commission) strictly divides systems into two categories.
📋 Systems Up To 10 kW (True Net Metering)
If your system is 1kW to 10kW, you fall under a 1:1 Net Metering framework. You export surplus power to the grid during the day and import at night. At the end of the month, your exported units are subtracted 1:1 from your imported units. You only pay for the net difference. This is highly favorable.
If your system is 1kW to 10kW, you fall under a 1:1 Net Metering framework. You export surplus power to the grid during the day and import at night. At the end of the month, your exported units are subtracted 1:1 from your imported units. You only pay for the net difference. This is highly favorable.
Systems Above 10 kW (Net Billing / Gross Metering)
If your system is above 10kW (e.g., 12kW), you fall under the Net Billing mechanism.
- Under Net Billing, you do not get a 1:1 unit offset.
- Instead, all energy you export to the grid is monetized at a lower rate fixed by KERC (e.g., ₹2.84 per unit).
- Meanwhile, all energy you import is billed at your standard high tariff slab (e.g., ₹8.50 per unit).
- Strategic Takeaway: If you are a residential consumer, it is financially optimal to keep your system size at or below 10kW to retain the 1:1 Net Metering benefits.
Sanctioned Load & Transformer Limits
BESCOM and other Karnataka DISCOMs enforce these capacity limits:
- Sanctioned Load: You can install a solar plant up to 100% of your sanctioned connected load.
- Transformer Capacity: The combined capacity of all solar installations in your area cannot exceed 80% of the local distribution transformer's capacity. In dense areas of Bangalore, this limit is sometimes hit, resulting in feasibility rejections.