AP’s new Net Metering policy – Grid interactive rooftop and small SPV plants

by Sindhura

The government of Andhra Pradesh released a  government order, GO MS. No. 22, to provide net metering facility to the consumers. You can download the original document HERE.


Guidelines for implementation:

  • Only for 3 phase service consumers. Single phase consumers are not eligible.
  • Consumer will generate solar power for self consumption and feed excess power into the grid.
  • The meter records net energy between export of generated energy and import of DISCOM energy for a billing month. Alternately, it can record both the import and export values and the net energy for the billing period can be calculated.
  • In a billing month, if there is a net import you pay the applicable retail supply tariff decided by the concerned DISCOM. If there is a net export, you wont get paid for it.
  • The consumer/SPV generator also has to set up a protection system on their premises with “Islanding” for events like grid failures
  • The entire cost of metering arrangement and accessories are to be paid by the consumer.
  • The consumer needs to submit information to DISCOMs to get acknowledgement for net metering as per the billing period.
  • The solar PV panels to be installed should meet Indian and IEC standards
  • Any prevalent subsidy from Govt of India can be availed.


So, what this policy means is that -

The consumers can generate solar power for self-consumption. The excess power, when it is not being consumed, will be injected into the grid but the government will not pay for it. This policy would only serve in aiding of infrastructure setup for any future policies that might offer a tariff for injected power.

It would be preferable to have a solar policy that offers a tariff for excess energy exported to the grid. Even better if it offers a higher tariff since it is green energy that is being generated. That would give incentive to the consumers to set up larger capacities and utilize most of their available unused rooftop and waste lands in their premises. That’s something to look forward to. 


59 thoughts on “AP’s new Net Metering policy – Grid interactive rooftop and small SPV plants

  1. Porter

    Wow, amazing blog layout! How lengthy have you ever been blogging for?

    you made running a blog glance easy. The overall glance of your website is excellent, as well as the content

  2. praveen

    i would like to install 1kw or 2kw solar rooftop systems for my home needs. can anyone please suggest how to proceed further and all

    is there any subsidies available for these solar systems let me know if not how mich it will cost if i do on my own without subsidies and what are the documents i need.

    Please give me a suggestion about net metering aswell.

    my contact number is 9550350058
    mail id: praveen401kumar@gmail.com

  3. Ankineedu.k

    Contact no:
    7331179037 (whatsapp no ),9505948484
    1. CAPEX – based on structure – if it is Roof Mounted – Rs.70 / Wp – Total – 70 Lacs – 100 Kw
    2. OPEX – Rs.6.50 @5 % Esc for 20 years with 5 % ( from CAPEX Cost) Security Deposit (need Documents)
    3. LOAN – 30 % Upfront Investment – 70 % Loan ( need documents)

  4. Ankineedu.k

    1. CAPEX – based on structure – if it is Roof Mounted – Rs.70 / Wp – Total – 70 Lacs – 100 Kw
    2. OPEX – Rs.6.50 @5 % Esc for 20 years with 5 % ( from CAPEX Cost) Security Deposit (need Documents)
    3. LOAN – 30 % Upfront Investment – 70 % Loan ( need documents)

  5. K. Lakshmaiah

    I Have installed 2 KW roof top solar PV system. The field staff are ignorant of Netmetering!! The staff should have been traned suitablly!! It is illogical not to pay extra Export of Energy!?

  6. K. Lakshmaiah

    I Have Installed 2 KW roof top solar PV system .Unfortunately ,The field staff are ignorant Net metering??? EPEDC could have deputed their staff for Orientation!! It is illogical not to pay for excess Export of Energy to the grid???NO one will opt for such system!! Thus I feel that I got into bad deal.

  7. sanjay

    Dear Sir,

    We are a drying company located in the state of Andhra Pradesh. We have power consumption of 70000 to 90000 units/month during February to May in every year. In other days there will be no power consumption.
    We are paying 7.10 rupees/unit to discom. The minimum billing we are getting around 35000 to 40000 Rupees, even with no consumption. Our CMD is 120. Please suggest us for best suited Solar proposal for us.

    1. Pavan Kumar

      Hi Sir,
      Hope you have found a suitable solution for your problem. If not please contact us here at Ecomitram. We have been in this field pioneering in the past few years. We have different models such as a Zero Investment Model, One Time Investment Model etc. which can be choosen according to your comfort. We have achieved a lot in the very few years of our work. Please check this link to know about our recent accomplishments http://www.dealstreetasia.com/stories/67368-67368/.
      Hoping for a positive reply.

  8. Girish Kumar Bajpai

    Sir I am from Kanpur & I want to install Solar plant on my house roof which is complete free for that use plz suggest me for complete process with all legal formality.


    1. ALI

      Dear Sir
      Greetings to you
      We kindly request you to contact us for MW & KW Solar Power Plant EPC on Turnkey bases in ALL OVER INDA. +91-9833872117 (ALI)

    1. arun

      hi let me know your requirement i can guide u and im from visakhapatnam and my mobile no is 9912141666
      thanks n regards

  9. Santhosh Reddy

    Any one successfully implemented this Project completely, If you can able to provide me the complete details that will be helpful for all.
    Kindly update us.

  10. Suresh Pathak

    How does the net metering work? Is the surplus energy tracked from moment to moment or it is
    cumulative over a month?

  11. ramesh.y

    i want to setup a solar power plant to cater a small service industry which needs to run 4 electric motors of 3HP each. hence please guide me. if it is possible what will be the cost of the project ?

    1. Akhilesh

      hi we are professional solar rooftop and power plant installers please contact 09703493168 or mail me for further information.

  12. Ajay Mohan

    We have installed ourselves 3KW Roof top Solar at our house and it is working fine since last 1 Year.We have not received any subsidy till now..since the department says that we need to install the same after approval from the department.Also there were no funds available with the department.
    If any one can guide us getting the subsidy it will be great.We are presently generating 400-450 Units per Month.It costed us Rs 2.65 Lacs……

  13. K Sudarshan Reddy

    Is there any subsidy for installing solar plant for self consumption for a commercial establishment. If yes how much percentage of installation cost.

    1. Pradeep

      Dear Mr.Sudarshan,

      A subsidy of 30% is available for Solar Power Plants setup for Self-Consumption. However, subsidy process is currently taking very long owing to non-availability of funds and may totally become unavailable in future. Solar PV technology is very much viable and is a very good long-term Energy Solution despite it’s high energy cost. So, we would suggest you to go ahead with adopting Solar Technology without waiting for Subsidy.

      Let us know if we can help you any further.

      Good day.

  14. Siva Naga Raju

    Can we have solar panels with manual operated seasonal tracking? I heard that they are free from maintenance problems and generate comparatively more power.What would be the cost of these panels and if used can we avail the subsidy from center and state governments?

    Can anyone have experience with dual axis automated tracking? I was told this is the best model to use PV but it got maintenance problem.Can I know the cost estimate and concession applicability to these types?

    1. Pradeep

      Seasonal Tracking is usually manual. The structure that is used has 3 slots – one for Latitude, one for Latitude+15 degrees (for Winter) and another slot for Latitude-15 degrees (for Summer).

      More advanced manual tracking systems have 6-7 slots which may not be required. Manual Tracking Systems are indeed low maintenance.

      Only the Cost of Structures changes because of these additional stress points. No change whatsoever will be there in the cost of panels resulting from Seasonal Tracking.

      Subsidies are usually applicable on the entire system and can be availed in the same fashion.

      The additional cost for Seasonal Tracking over Fixed Structures might be in the range of 20-30%.

  15. Siva Naga Raju

    What is the problem to them if we use a battery for storage? We can meet our night demand with our own energy. If we don’t have storage, we are venerable to errant power cuts during nights. Especially in villages.
    Is there any technical reason for forbidding the storage unit + benefit?

  16. Siva Naga Raju

    Anybody know exactly the tariff per unit of energy fed to the grid from roof top PV through a single phase inverter as per the new policy of AP?

  17. Mallik

    I want to know how the SLD look like weather import and export will show in the meter. Please give me the details

  18. Saurabh

    The following are the amendments done in the net metering policy for AP:
    (i) Surplus energy injected by Solar Roof Top/Small Solar PV generator
    shall be considered for payment by concerned APDISCOMs at pooled
    cost as may be decided by APERC for that year.
    (ii) The payment of pooled cost will be made effective for a period of 7
    years from the date of establishment of such SPV plant.
    (iii) The settlement of registered surplus energy will be carried out on a
    half yearly basis.

  19. H.Srinivasa Dikshit

    A lot is said and expected from net metering policy.
    But there are no 3 phase grid pumping inverters in the range of 1 to 5 KWp capacity. Hence only 7 to 10 KWp plants are only going to come up. Small house holds cannot set up 1 to 3 KWp range .

    My search for 1, 2 and 3 KWp 3 phase grid pumping inverters did not get any results.

  20. Pingback: AP G.O- Payment for surplus energy from Grid connected Solar Roof-top and Small SPV | EfficientCarbon

  21. K Ganesh Rama Rao

    Solar Ground Mount /Roof Top Integration systems providers , PV CPV technology, EPCM services, Subsidy Procedures, Technology providers for 1kW to 10 MW plant models in PV, CPV,

    Techno Renewable Energy Systems India Pvt Ltd
    Hyderabad, India
    Off – +91 40 40122111
    Mobile 9394882815

  22. Mohiuddin Shabbar

    Government seems not so appropriate if it does not realize the need of hour. How are they going to assure they will achieve the targets of JNSSM????
    Moreover there is no one to take responsibility of major concern (energy security) a lot of power cuts because of diversion of power to industrial sector is another example.

    Ok in short is there a rule or something which say you cannot even generate your own solar power per the demand of your household?

    And what about the subsidy ?? Please clear if i am eligible to avail 30% panel cost subsidy if i have no battery back up???? and how is it going to get monitored???
    Thanks Regards,
    Mohiuddin Shabbar

    1. Sindhura (Post author)

      Hello Mr. Mohiuddin Shabbar,

      No, there is no rule saying you cannot generate solar power sufficient for your household requirements. Although, it will cost more than grid power at the moment if you dont avail of any subsidy, The 30% capital subsidy is available for rooftop off grid projects from MNRE. If you are interested to set up a plant with net metering, you will still be eligible for this benefit. Given you atleast invest 20% of this capital cost by yourself. The rest can be obtained through financing loans. As far as I know, there is no monitoring procedure for this. It is simply a one time capital subsidy which will be released to the bank once your loan gets sanctioned. Also, there is a limit on the capital subsidy, it has to be against a benchmark of Rs. 160/W (for 100kW).


  23. Uday

    Hi SIndura

    I am from Loyola Engineering College, Vijayawada.
    My College Director already got 100kW SPV Plant and we are waiting for this net metering connection, can u give me details like what s d procedure to follow, to whom we have to approach and how to apply for net metering and so on..

    1. Sindhura (Post author)

      Hello Mr. Uday,

      This net metering policy was released a month ago and since then there has not been any announcement/government orders on the procedure to apply for it. We shall definitely post about it as soon as there is any further information.


  24. Sindhura (Post author)

    Mr. Sabha,

    As far as I am aware, there has not been any other announcement on this policy. We shall let you know as soon as government releases any GOs/documents on the implementation procedure.


  25. Bharat Vaka

    It looks like Government realized that their initial idea is not going work. Seems like they are progressing in the direction to pay around Rs.3.50/- per unit that you feed in. Not sure when this is going to become a policy…

      1. Sindhura (Post author)

        Dear Bharat Vaka,

        Thanks for sharing that information. Indeed, it would be much better if they make a policy to pay for the exported power. Although Rs. 3.5 /kwh is rather low in my personal opinion, something is always better than nothing. Let us see.



    Prima-facie,the Net Metering policy as announced by AP Govt. is not quite encouraging bcos of the following reasons:

    1) The excess power generated that shall be exported to DISCOM (and which remains unutilised) shall not be considered for any monitary benefit in case the SPV Generator is interested to support the DISCOM with Surplus Power.
    2) SPV Generator is not eligible for any Subsidy in case he is opting to have Battery Back-up.
    Imagine a scenario wherein SPV’s monthly consumption is around 750 units (avg 25 units/day) for which he needs to install a 5KVA Solar Panels, and in case his requirement during the sunlight hrs is just 350 units/month & the surplus 400 units thus generated & exported to DISCOM to be used post Sunset Hrs is not available due to Power Cut & the SPV is able to utilise only 200 Units, thus he is bound to lose the surplus 200 Units exported to DISCOM! The sad part is, the SPV Generator cannot have the Battery Backup to avail the subsidy, and though he is eligible to import his 200 units previously exported gets expired in the billing month without any carry-forward facility!
    It is nothing but penalising the SPV Generator for no mistake of HIS! The Govt should either assure uninterrupted power supply to the SPV Generator or let the SPV be permitted to have Battery Backup by simultaneously availing the Subsidy.
    3) All the CAPEX (apart from the Solar Panels) needs to be borne by the SPV Generator.
    It would’ve been encouraging in case the DISCOM shares the cost of Accessories/Equipment (excluding Solar Panels) as it is also likely to get benefit from under utilisation of the exported power by SPV.

    1. Sindhura (Post author)

      Dear Mr. Anand Gupta,

      We completely agree with you, as I am sure you must have noticed from the tone of the blog. The net metering policy is not really providing any motivation or worse actually has disincentives like you said. The SPV has to bear the cost of metering equipment, pay for the more expensive solar power (even with the subsidy), pay for his battery, not get paid anything for his excess power injected into the grid. I personally do not see how this policy could ever be successful.

      The best hope is that this policy will be just a predecessor that ensures establishment of infrastructure for another forthcoming policy which shall offer tariffs (high prices on par with utility scale solar projects) for the exported power.


  27. Sindhura (Post author)

    Mr. Anil,

    Thanks for expressing this point. It would indeed be great if the government itself provided good metering equipment and managed it well to prevent energy theft. Unfortunately, this policy, it seems to me, is only targeting to cut down the demand on grids but does not want to spend any money – either to pay for the metering arrangements or for exported power to grid. Hopefully, there will be better policies announced in the future.


  28. Lakshminarayana

    Whom should i contact to start this product /service ? what is the procedure? How much it will cost ?

    1. Sindhura (Post author)

      Hello Mr. Lakshminaraya,

      So far, they have not yet announced the details of the metering process. Only the G.O. of the policy requirements has been released. We will let you know as soon as more information is available.


  29. Anil

    i just want to say something regarding the net metering policy that has been stated above and since we have a very ill maintained transmission and distribution structure and the major thing is confined to energy theft which has to be monitored regularly using a very high precisioned equipment .i guess confined under such situations the above GO might be under useful play only if the government would provide with the best equipment and management for review of the readings.


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