Solar Banking Kerala: Hours & 2% Charge Guide 2026
Solar banking is how a net-metered Kerala home sends extra daytime units to the grid and uses them later on your bill. From 1 January 2026, Chapter III of KSERC's 2025 rules sets the solar-hour windows, how exports offset imports, the 2% monthly charge on banked units you carry forward, and what happens at year-end.
Quick answer: Solar hours are usually 8 am–6 pm on smart/ToD meters, or 6 am–6 pm (Zone 1) otherwise. Export in a time zone first offsets your import in that same zone. Banked units you roll to the next month lose 2%. Whatever is still left at financial year-end is paid at the applicable APPC rate by 30 April, unless you apply to carry the credit forward.
What solar banking Kerala means on a KSEB bill
Regulation 3 defines banking facility as the arrangement that lets a prosumer inject surplus renewable energy into the grid in one time block or period and account it against energy drawn later. For a domestic net-metered plant, that everyday idea is surplus export offsetting later import inside Regulation 28.
Chapter III energy accounting, billing and settlement come into force on 1 January 2026 under Regulation 1.3. The solar-hour windows, normalisation table, monthly banking charge and year-end settlement steps below are that Chapter III framework for eligible net-metered prosumers.
Solar hours versus non-solar hours in Kerala
Regulation 3(91) defines solar hours as 08:00 (8:00 am) to 18:00 (6:00 pm) on the same day. Non-solar hours are every other hour. Peak hours inside non-solar time are 18:00 to 23:30, and off-peak hours are 23:30 to 08:00 under Regulation 3(103). Those clocks matter for banking offsets and for grid support charges, which are a separate line.
Regulation 3(91) carries a meter proviso. The 08:00–18:00 solar-hour window applies where ABT meters, smart meters or ToD meters programmed for that time zone are installed. In all other cases, solar hours follow Zone 1 from 06:00 am to 06:00 pm. If your bi-directional meter is not programmed for the narrower window, banking may still use the wider Zone 1 day.
| Window | Clock (as defined) |
|---|---|
| Solar hours (programmed meter) | 08:00 to 18:00 |
| Solar hours (other meters / Zone 1) | 06:00 to 18:00 |
| Non-solar peak hours | 18:00 to 23:30 |
| Non-solar off-peak hours | 23:30 to 08:00 |
How Regulation 28.4 offsets and banks your units
For existing prosumers and for the domestic-scale net-metering classes listed in Regulation 28.4, generation is first offset against simultaneous consumption at the premises. Only the surplus is exported and banked for use in other time periods. The net meter records export and import under the three zone-wise time periods.
Under Regulation 28.4(iii), exported energy in each time zone is first adjusted against imported energy in the same time zone. If that same-zone export is fully used, leftover import in that zone is billed at the applicable retail supply tariff. Only surplus export after that step moves into banking and normalisation.
Regulation 28.4 says the zone-wise normalisation factor shall be 1 for all time zones for net-metering plants of capacity up to and including 2 kW. Many PM Surya Ghar homes sit in that band, so their banking arithmetic stays simpler than Table 3 domestic factors for larger plants.
Domestic normalisation factors in Table 3
When surplus remains after same-zone adjustment, Regulation 28.4(v) normalises that surplus using Column A of Table 3 to arrive at the banked quantum. When banked energy is taken back to offset import in a time zone, Column B applies. Column B is not applied when surplus banked energy is monetised.
| Time zone | Column A (to bank) | Column B (to draw banked units) |
|---|---|---|
| Solar hours | 1.0 | 1.0 |
| Non-solar peak hours | 1.33 | 0.75 |
| Non-solar off-peak hours | 1.17 | 0.85 |
After adjustment and normalisation under Regulation 28.4(v), banked energy is first offset against remaining import during solar hours, then against remaining off-peak import, and lastly against remaining peak import. Any import still left in a zone is billed at the retail tariff. The Commission may revise Table 3 later through the ToD tariff process.
The 2% monthly banking charge and year-end settlement
At the end of a billing period, units needed to offset charges under Regulation 26 can be monetised at the applicable APPC or FiT decided by the Commission. Any balance units after that step are carried to the next billing period after deducting a monthly banking charge of 2% of the balance units under Regulation 28.4(vi). That banking facility runs till the end of each financial year.
Regulation 28.4(viii) monetises units still in credit when the financial year closes, at the applicable APPC or FiT decided by the Commission. The distribution licensee must pay that amount before the 30th day of April of the subsequent financial year. If you apply to carry the credit amount forward, the licensee shall carry it into the next financial year for adjustment.
Regulation 28.6 records settlement rates of ₹3.08 per kWh for existing prosumers and ₹2.79 per kWh for new solar prosumers (₹2.87 per kWh for wind). Regulation 28.4 also points to the applicable APPC or FiT as decided by the Commission, so always read the rupee figure printed on your own settlement advice.
What this guide does not change
- Regulation 28.7 grid support charges are separate from banking and apply only on non-solar-hour draw matched against banked units, with a domestic exemption path up to and including 10 kW.
- Regulation 6.1 puts commercial connections on net billing rather than the domestic net-metering banking path in this guide.
- Regulation 3(73) counts plant capacity as the inverter’s nominal AC kilowatts, not panel kilowatt-peak alone.
Check this against your bill
FGE Solar can review your latest KSEB bill and tell you which system size is worth pricing.
Frequently Asked Questions
What are solar hours for Kerala net metering?
Regulation 3(91) sets solar hours from 08:00 to 18:00 where an ABT, smart or ToD meter is programmed for that window. Otherwise solar hours follow Zone 1 from 06:00 to 18:00. Non-solar hours cover the rest of the day.
Does the 2% banking charge cut every unit I generate?
No. Regulation 28.4(vi) applies the 2% monthly banking charge only to balance units carried into the next billing period. Generation used in the same month is not reduced by that 2% line.
When does leftover banked energy become a cash credit?
Regulation 28.4(viii) monetises credit remaining at financial-year end at the applicable APPC or FiT. Payment is due before 30 April of the next year unless you ask to carry the credit forward.
Do 1 kW and 2 kW homes use Table 3 peak factors?
For net-metering plants up to and including 2 kW, Regulation 28.4 sets every zone-wise normalisation factor to 1. Table 3 peak and off-peak domestic factors apply to larger plants in that class.
Is banking the same thing as grid support charges?
They are different lines. Banking under Regulation 28.4 is export–import accounting and carry-forward. Grid support under Regulation 28.7 is a separate charge on non-solar-hour draw matched against banked units.
Official Sources and Accuracy Note
- 01KSERC (Renewable Energy and Related Matters) Regulations, 2025
Reg 3 banking facility definition — opened gazette PDF.
govt source · opened 2026-10-02
Accuracy note: This guide is built from government pages, regulator orders, and news sources on the web. Rules and amounts change. Some details may be outdated or wrong. Check the official links below before you pay, apply, or complain to KSEB.