Important: 2026 Update on KSERC Rules

KSEB Net Metering in Kerala — 2026 Update

A practical 2026 guide to net metering in Kerala, including how the KSERC 2025 regulation changes affect new rooftop solar applications, timelines, and homeowner decisions.

Last updated: July 24, 2026 Reviewed by: Vishnu M, FGE Solar Sources: KSERC, KSEB

What Is Net Metering?

Verified against official sources · Last checked 24 July 2026

Your solar panels generate electricity during the day. Whatever you don't use immediately gets exported to the KSEB grid. At night — or whenever your panels aren't generating enough — you draw electricity from the grid. Your bidirectional meter tracks both directions: what you sent to the grid, and what you pulled from it.

KSEB accounts for import and export under the current KSERC rules. The result is not always a simple monthly subtraction: time-zone adjustment, banked-energy treatment, fixed charges, other approved charges and, where applicable, grid-support charges can affect the bill.

How Net Metering Works

Solar Panels
→ powers home ← draws at night
Your Home
→ exports excess ← draws at night
KSEB Grid

How KSEB Net Metering Works in Practice

Bidirectional meter: A new net meter replaces your old KSEB meter. It tracks both export (daytime surplus) and import (night usage). KSEB arranges and installs this.
Monthly banking: Eligible balance units can carry to the next billing period after zone-wise adjustment and a 2% monthly banking charge.
Financial-year settlement: The final regulations set surplus banked solar energy at ₹3.08/kWh for existing prosumers and ₹2.79/kWh for new prosumers, after applicable adjustments.
Bill calculation: Remaining imported energy is billed at the applicable retail tariff. Fixed charges and other approved charges remain; grid-support charges apply only where the regulations require them.
Banked-energy use: Summer surplus may help offset later consumption, but the benefit depends on time-zone normalisation, the banking charge, consumption profile and the current settlement rules.

What the KSERC 2025 Regulations Mean in 2026

There has been significant confusion about changes to net metering in Kerala. Customers are worried. Social media has amplified the fear. Here is what the final Gazette says, what has changed, and — most importantly — what it means for you specifically.

Final KSERC 2025 Regulations: Key Domestic Rules

New domestic net-metering systems may be 1 kW to 20 kW, subject to connected load, feasibility and the other conditions in Regulations 6.3 to 6.6.

The normal single-phase inverter limit is 3 kW. Systems above 3 kW generally require a three-phase inverter; this is an inverter/connection rule, not a 3 kW solar cap.

For domestic net metering, systems above 10 kW to 15 kW need 10% storage and systems above 15 kW to 20 kW need 20% storage, measured against generation potential. From 1 April 2027, the final rules also require 10% storage for new feasibility above 5 kW to 10 kW.

Existing prosumers: Continue under net metering subject to Regulation 2.3 and the final accounting provisions. Capacity or inverter changes should be checked before work.

✓ Eligible Range

New Domestic System

Domestic net metering is available from 1 kW to 20 kW, subject to connected load and technical conditions.

✓ Continues

Existing Solar Users

Existing prosumers continue under net metering, with the circumstances in Regulation 2.3 still applying.

Check Design

System Above 3 kW

Plan the phase/inverter arrangement and check whether the capacity falls within a current or future storage threshold.

Bottom line: Net metering is not banned and 3 kW is not the general domestic system cap. Correct design depends on sanctioned load, phase availability, inverter capacity, storage thresholds, hosting capacity and the date feasibility is sought.

Net Metering vs Net Billing — What's the Difference?

For larger systems, it matters which regime applies:

Net Metering

Energy Banking & Offset

Domestic eligibility: 1–20 kW, subject to conditions
Import and export recorded by time zone where applicable
Balance units carry after a 2% monthly banking charge
Year-end solar settlement: ₹3.08 existing / ₹2.79 new
Fixed and other applicable charges remain
Net Billing

Imported and Exported Value

Available as an option to all consumers/prosumers
Imported energy billed at the retail tariff
Exported energy valued under the applicable FiT method
Capacity tied to connected load/contract demand and limits
Choose only after load-profile and tariff analysis

Net Metering Application Process — FGE Handles It

You don't need to deal with KSEB directly. FGE Solar submits and follows up on your net metering application as part of our installation service.

1

FGE Submits Application to KSEB

After your solar installation is complete, FGE Solar files the net metering application to KSEB on your behalf. This includes all technical documentation and site details.

2

Feasibility, Registration & Installation

The final regulations provide for a technical feasibility study within 15 days, subject to a complete online application and the stated conditions. Registration, installation and required approvals follow.

3

Testing & Bidirectional Meter

After the completion report or approval, the licensee tests the system and completes the connectivity steps. Meter security deposit or rent may apply at rates approved by KSERC if the meter is provided by the licensee.

4

System Live — Net Metering Active

After successful testing, agreement and commissioning, the bill records import and export. PM Surya Ghar CFA is processed separately after installation, DISCOM inspection/approval and the required portal steps; no installer can promise a payment date.

Regulatory checkpoints: Technical feasibility is due within 15 days of a complete application. The regulations also set separate testing, agreement and meter/commissioning timelines; the overall elapsed time depends on installation readiness and complete approvals.

Frequently Asked Questions

The final regulations set activity-wise timelines: the technical feasibility study is due within 15 days of a complete online application, and meter installation/commissioning is due within 15 days after the required completion report or approval. Installation, testing, agreements and incomplete documents can affect the total elapsed time.
Existing prosumers continue under net metering subject to Regulation 2.3 and the final accounting rules. Do not assume every change is automatically protected: an upgrade, transfer, change of metering option or end-of-life replacement should be checked against the live KSEB process.
No. The final KSERC 2025 regulations allow new domestic net-metering systems from 1 kW to 20 kW, subject to connected load and the stated technical conditions. The 3 kW rule normally limits what can be connected through a single-phase inverter; systems above 3 kW generally require a three-phase inverter. It is not a universal solar-system cap.
The main benefit is reduced billed import, but current accounting is zone-based where applicable rather than a universal one-for-one monthly subtraction. Balance units carried forward are reduced by a 2% monthly banking charge. At financial-year settlement, the final regulations set ₹3.08/kWh for existing prosumers and ₹2.79/kWh for new solar prosumers, after applicable adjustments.
Not if you use FGE Solar. We submit the net metering application to KSEB on your behalf as part of our installation service — this is included at no extra charge. You don't need to visit KSEB offices or follow up separately. We handle the entire process and update you at each stage.
A new domestic 5 kW system can fall within the 1–20 kW net-metering range, subject to sanctioned load, hosting capacity and inverter conditions. Because it is above the normal 3 kW single-phase inverter limit, a three-phase inverter is generally required, except for the limited transitional case stated in Regulation 16.5. The domestic storage threshold above 5 kW to 10 kW begins for feasibility sought from 1 April 2027; always confirm the live KSEB requirements before design.

Confused about whether the new rules affect you?

Our team will review your specific situation — whether you're an existing solar owner or planning a new install — and explain which 2025 regulation conditions apply to your proposal. Free, no obligation.

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Ready to Get Net Metering Set Up?

FGE Solar handles the complete KSEB net metering application — from paperwork to inspection to activation. Included free with every installation.

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Next step after KSEB net metering in Kerala — 2026 update

After understanding the policy, the next step is sizing the system correctly and validating project economics.