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: April 13, 2026 Reviewed by: Vishnu M, FGE Solar Sources: KSERC, KSEB
The Basics

What Is Net Metering?

Official references to verify current rules

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.

The difference is what you're billed for. If you exported more than you used over the month, your bill can drop to near-zero — just the fixed charges remain.

How Net Metering Works

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

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: Your surplus export credits roll over month to month throughout the year.
Annual settlement: On March 31 each year, any unused credits are settled at ₹3.15 per unit — deposited to your KSEB account or credited against arrears.
Bill calculation: You only pay for "net" units consumed (import minus export). Fixed charges (meter rent, etc.) remain regardless.
Summer banking for monsoon: Excess summer generation banks as credits, which offset consumption during the cloudy monsoon months. Your annual average savings remain strong.
2026 Checkpoint

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 exactly what is happening, what has changed, and — most importantly — what it means for you specifically.

KSERC 2025 Draft Regulations: What's Changing

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Net metering is now limited to 3kW for new residential solar systems (previously the limit was 1MW for residential).

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Systems up to 5kW can still get full net metering — but only if they include battery storage (hybrid inverter + minimum 30% of system capacity as storage).

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Systems above 3kW without battery: net billing applies instead of net metering — export is compensated at a lower rate, which is less favourable.

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Existing systems: Fully protected by grandfather clause. Not affected. No action required.

✓ No Change

New 3kW System

Full net metering. Exactly as before. This covers 80% of Kerala homeowners.

✓ Protected

Existing Solar Users

Grandfather clause protects you. Your setup is untouched. Zero action needed.

⚠ Consider Battery

New System Above 3kW

Add battery storage to retain full net metering. Our team will advise if it's worthwhile.

Bottom line: For most Kerala homeowners planning a 3kW system, the new regulations change nothing. Net metering works exactly as before. If you're planning a larger system, FGE Solar will advise whether battery addition is financially sensible for your case.

Understanding the Difference

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

For larger systems, it matters which regime applies:

✓ Net Metering (≤3kW)

Unit-for-Unit Offset

1 unit exported = 1 unit credited
Credits roll over month-to-month
Annual settlement at ₹3.15/unit
Best financial outcome
Available for all ≤3kW new systems
Net Billing (>3kW, no battery)

Export at Lower Rate

Export compensated at lower rate
Different calculation method
Still beneficial but less so
Applies to new >3kW without battery
Adding battery restores net metering
The Process

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

KSEB Reviews & Inspects (2–4 weeks)

KSEB sends a technical officer to inspect the installation and verify it meets safety and grid standards. FGE is present for this inspection.

3

Bidirectional Meter Installed

KSEB installs your new net meter (bidirectional) at their cost for residential installations. This replaces your existing meter. Approximate cost: ₹3,000–₹5,000 varies by location.

4

System Live — Net Metering Active

Your system is commissioned. Net metering begins. You can track your export and import on your KSEB bill. For PM Surya Ghar applicants, commissioning also triggers subsidy release.

Timeline: Typically 4–8 weeks from application to net meter installation. KSERC mandates 15-day Technical Feasibility Report + 135-day total process.

Common Questions

Frequently Asked Questions

Typically 4–8 weeks from application submission. KSERC regulations mandate a 15-day Technical Feasibility Report from KSEB, with a total 135-day timeline for the complete process. FGE Solar follows up throughout and keeps you updated.
No. The regulations include a grandfather clause specifically protecting existing net metering users. Your current setup continues exactly as it is — no upgrades, no paperwork, no changes required. This applies to anyone who already has a solar system with net metering.
No. Net metering is not banned. What changed is the capacity limit for new residential installations — from 1 MW down to 3 kW without battery storage. For the overwhelming majority of Kerala homeowners who install a 3kW system, nothing has changed. The confusion stems from social media amplification of incomplete information. If in doubt, contact us and we'll explain clearly what applies to your specific situation.
You don't earn cash directly. Under net metering, you earn credits — one exported unit offsets one imported unit from the grid. The financial benefit comes from reducing your import (bill reduction), not from "selling" power. If you have unused credits at the annual settlement on March 31, KSEB compensates them at ₹3.15 per unit — this is credited to your KSEB account, not paid in cash.
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.
For a new 5kW system, you have two options: (1) Add battery storage (hybrid system with minimum 30% storage, i.e., ~5 kWh battery) to retain full net metering, or (2) Proceed without battery and be on net billing (export compensated at a lower rate). Our team will calculate whether adding a battery is financially worthwhile for your consumption pattern — the answer depends on your specific usage profile.

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 exactly what the 2025 regulations mean for you. Free, no obligation.

Ask Our Expert on WhatsApp

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.