BESCOM net metering — explained simply.

What is net metering?

Net metering is the billing arrangement that makes rooftop solar worthwhile in Bengaluru. If you haven't applied for PM Surya Ghar yet, read our complete PM Surya Ghar Karnataka guide first. Net metering is a billing arrangement where your BESCOM meter runs in both directions. When your solar panels generate more electricity than you're using, the excess flows back to the BESCOM grid. Your meter spins backward (or the digital equivalent). At the end of the billing period, you're charged only for the net — what you consumed minus what you exported.

How BESCOM calculates your bill

Here's a simplified example for a Bengaluru home with a 3 kW system:

Metric	Before solar	After solar (3 kW)
Monthly consumption	400 units	400 units
Solar generation	—	~360 units
Self-consumption (daytime)	—	~200 units
Exported to grid	—	~160 units
Imported from grid (night + cloudy)	400 units	~200 units
Net billed units	400 units	200 − 160 = 40 units
Approximate BESCOM bill	₹3,200	₹320

That's a 90% reduction in your BESCOM bill — from ₹3,200 to ₹320 per month.

What happens to excess units?

Under BESCOM's current net metering policy, excess units exported in a billing cycle are carried forward as credits. At the end of the financial year (March 31), any remaining credits are settled at the Average Pooled Purchase Cost (APPC) rate — currently around ₹3.5–₹4 per unit.

In practice, most well-sized residential systems balance out over the year. You export more in summer (longer days) and import more in monsoon (shorter days, cloud cover). The annual net tends to be close to zero.

Important things to know

• You still pay fixed charges. BESCOM's fixed demand charge (~₹60–₹100/month) applies regardless of net metering. Your bill will never be zero — but it can be very close.
• The meter is bidirectional. BESCOM installs a bidirectional meter at no extra cost (or a nominal charge). This replaces your existing meter.
• System size is capped at your sanctioned load. If your BESCOM sanctioned load is 3 kW, your solar system can't exceed 3 kW under net metering. Load enhancement is possible if needed.
• Net metering agreement is for 25 years. Once signed, your net metering arrangement runs for the lifetime of your system.

A real example from HSR Layout

A 3-bedroom independent house in HSR Layout installed a 3 kW system in January 2026. Their BESCOM bill dropped from ₹3,800/month to ₹200–₹400/month. Over 12 months, they saved ₹40,800 in electricity. After accounting for the ₹87,000 out-of-pocket cost (₹1,65,000 system minus ₹78,000 subsidy), their payback period is 2.1 years — faster than the national average because Bengaluru's tariffs are relatively high.