What Is KSEB Net Metering?
Verified against official sources · Last checked 26 October 2026
- KSERC (Renewable Energy and Related Matters) Regulations, 2025 — final notification
- Current KSERC tariff order
- Confirm the live application workflow and site-specific feasibility with KSEB before purchase.
KSEB net metering is a billing mechanism that enables eligible consumers with grid-connected solar power systems to export excess electricity to the Kerala State Electricity Board distribution network.
A rooftop solar system generates electricity during the day. This power is first used to operate electrical appliances within your home. When the solar system produces more electricity than required, the surplus is exported to the KSEB grid.
When solar generation is insufficient, such as during the night or cloudy weather, the home imports electricity from the grid.
A bidirectional solar meter records both imported and exported electricity. KSEB uses these readings, along with the applicable energy adjustment and banking rules, to calculate your electricity bill. This arrangement is known as solar power net metering.
Why Is Net Metering Important for Solar Power Systems?
Installing solar panels allows you to generate renewable electricity, but the metering arrangement determines how surplus power is accounted for.
With an eligible net metering solar system, you can:
A properly designed solar power net metering system can help homeowners reduce long-term electricity expenses while making better use of the electricity generated by their panels.
How Does KSEB Net Metering Work?
A solar energy metering system connects your rooftop solar panels, inverter, electricity meter and the KSEB distribution grid. The process involves solar electricity generation, household consumption, export of surplus power and grid import when needed.
Solar panels generate electricity
Solar panels installed on your roof convert sunlight into electricity. An inverter converts the generated DC electricity into AC electricity that can be used by household appliances. The actual generation depends on panel capacity, sunlight availability, roof orientation, shading and system efficiency.
Your home uses the solar electricity
The electricity generated by the solar panels is first used to meet your home's immediate power requirements. During the day, appliances such as fans, refrigerators, pumps and air conditioners may operate using solar electricity. This reduces the amount of electricity that needs to be imported from KSEB.
Excess electricity is exported to KSEB
When the solar panels generate more electricity than your home consumes, the surplus is exported to the electricity grid. The bidirectional solar meter records the electricity exported. This enables eligible surplus electricity to be considered for adjustment or banking under the applicable net-metering regulations.
Electricity is imported when solar generation is insufficient
Solar panels generally produce little or no electricity at night. Your home therefore imports electricity from KSEB whenever solar generation cannot meet demand. The meter records this imported electricity separately.
KSEB calculates your electricity bill
KSEB accounts for imported and exported electricity using the applicable net-metering rules. The calculation may involve time-zone adjustments, banked energy, remaining chargeable units and applicable fixed or additional charges. The result is a solar net metering bill reflecting both grid electricity consumption and eligible solar energy adjustments.
How a Bidirectional Solar Meter Works
Unlike a conventional electricity meter, a bidirectional solar meter records energy flowing in both directions.
A separate renewable energy generation meter may also be used in accordance with the applicable metering requirements. These measurements help KSEB account for electricity generated, consumed, imported and exported by the solar installation.
KSEB Net Metering Rules in Kerala 2026
The Kerala State Electricity Regulatory Commission (KSERC) introduced updated renewable energy regulations in November 2025. These regulations govern the eligibility, installation, energy accounting and billing requirements of grid-connected renewable energy systems in Kerala. Homeowners planning a KSEB solar net metering connection should understand the applicable rules before selecting their solar system.
Who Is Eligible for KSEB Solar Net Metering?
Under the final KSERC 2025 regulations, eligible domestic consumers can apply for net metering for renewable energy systems with capacities from 1 kW to 20 kW. Approval is subject to technical feasibility, sanctioned connected load, distribution-network capacity and other regulatory conditions.
Existing prosumers can generally continue under the net-metering system, subject to the provisions governing system upgrades, modifications and changes in metering arrangements.
Single-Phase and Three-Phase Solar Connections
The normal maximum solar inverter capacity permitted through a single-phase connection is 3 kW. Installations exceeding 3 kW generally require a three-phase inverter.
However, the regulations provide a transitional exception for eligible applicants in locations where a three-phase network is unavailable. Subject to the specified conditions, single-phase solar inverters up to 5 kW may be permitted for applications seeking feasibility until 31 March 2027. Your existing electrical connection and proposed system capacity should be reviewed before installation.
Battery Storage Requirements for Solar Systems
Certain larger domestic solar installations must meet minimum energy-storage requirements.
These requirements affect inverter selection, system design and installation costs.
Solar Energy Banking and Settlement
When eligible solar electricity exports exceed the electricity adjusted during a billing period, the remaining balance can be carried forward as banked energy. Under the applicable regulations, the carry-forward balance is subject to a 2% monthly banking charge.
At financial-year settlement, the notified surplus solar-energy settlement rates are ₹3.08 per unit for existing prosumers and ₹2.79 per unit for new prosumers, subject to applicable adjustments and subsequent regulatory revisions. These are surplus-energy settlement rates, not the standard retail electricity rates paid by consumers.
A separate ₹3.26 figure you may still see
KSERC also set ₹3.26 per unit to settle surplus banked energy held as on 31 March 2025, and kept that rate in its order of 27 July 2026 (OP No. 52/2025). That is separate from the ₹3.08 / ₹2.79 rates in the 2025 regulations.
Are Grid Support Charges Applicable?
Under the current regulatory provisions, eligible domestic net-metering systems up to and including 10 kW generally receive an exemption from grid-support charges. However, new domestic systems above 5 kW seeking feasibility from 1 April 2027 will be subject to the applicable grid-support charge provisions.
For chargeable arrangements, the notified interim rates are ₹0.50 per applicable unit for the first 300 units and ₹1 per applicable unit thereafter. FGE Solar can help assess how the current regulations apply to your proposed installation.
Check Your 2026 Eligibility
Enter your average bi-monthly KSEB bill to see how the new rules affect your required system size.
Commercial note: Domestic net metering under the 2025 regulations is for eligible LT-I homes. LT commercial and industrial consumers follow different metering categories — confirm gross metering, net billing or captive arrangements with KSEB before you size a plant.
How Is a KSEB Solar Net Meter Bill Calculated?
Understanding your solar net meter bill is important because solar electricity billing differs from conventional KSEB electricity billing. A normal KSEB electricity bill primarily accounts for the electricity drawn from the distribution grid. A solar net metering bill also considers electricity exported by the rooftop solar installation and eligible adjustments or credits.
Understanding Import, Export and Banked Electricity Units
The main components of a KSEB solar net meter bill include:
The final electricity bill may also include fixed charges, electricity duty and other applicable charges.
Solar Net Metering Bill Calculation Example
Consider a residential solar installation with the following electricity generation and consumption.
| Component | Units |
|---|---|
| Total solar electricity generated | 500 |
| Solar electricity consumed directly | 200 |
| Electricity exported to KSEB | 300 |
| Electricity imported from KSEB | 250 |
In this example, the solar system generates 500 units, of which the home directly consumes 200 units. The remaining 300 units are exported to the grid, while the home imports 250 units during periods when solar generation is insufficient.
KSEB records the imported and exported electricity and applies the relevant time-zone, adjustment and banking provisions. Although a simple subtraction would suggest a surplus of 50 units, the final billable units and banked balance may differ because the current regulations do not universally provide an unrestricted one-for-one adjustment across all time zones. The example is intended to explain electricity flows rather than calculate an actual bill.
Can Solar Net Metering Reduce Your KSEB Electricity Bill?
Yes. A properly sized solar system can reduce electricity expenses in two ways. First, electricity consumed directly from the solar panels reduces the amount imported from the grid. Second, eligible exported electricity can be adjusted against grid imports under the applicable net-metering rules.
Actual savings depend on solar generation, electricity consumption, time of use, approved tariffs and energy-banking arrangements.
Want to understand how your electricity consumption affects your current bill? Use the FGE Solar KSEB electricity bill calculator to estimate electricity charges and explore the financial benefits of rooftop solar. For an accurate solar net-metering assessment, your actual import, export and banked-unit data must also be considered.
KSEB Net Metering vs Net Billing: What's the Difference?
Net metering and net billing are different electricity accounting arrangements for grid-connected solar systems. The main difference lies in how imported and exported electricity is treated.
Energy Banking & Offset
Imported and Exported Value
The appropriate arrangement depends on your consumer category, system capacity, sanctioned load, electricity consumption and regulatory eligibility. For eligible domestic rooftop solar systems, net metering remains an important option in Kerala. FGE Solar can help evaluate the available arrangements and recommend a suitable grid-connected solar configuration.
KSEB Solar Net Meter Connection Process
Obtaining a solar net meter connection involves technical assessment, application approval, installation, inspection and meter commissioning. FGE Solar assists customers throughout the applicable process so that their rooftop solar systems meet the required technical and documentation standards.
Site assessment and application
The process begins with reviewing your property's electricity requirements and rooftop suitability. Our team assesses your latest KSEB electricity bill, sanctioned connected load, roof area, shading conditions and proposed solar capacity. The applicable KSEB application is then prepared with the required consumer and technical details.
KSEB technical feasibility and registration
KSEB reviews the proposed solar installation to determine whether the system can be connected to the distribution network. The review considers factors such as available network hosting capacity, connected load and inverter specifications. Under the current regulations, the technical feasibility study is ordinarily required within 15 days of receiving a complete online application. Following feasibility approval, the applicant must complete the registration process within the prescribed period.
Solar system installation and inspection
Following the applicable approvals and registration, installation of the rooftop solar system can begin. The installation includes solar photovoltaic panels and mounting structures, solar inverter and electrical connections, DC and AC cabling, earthing and required protection devices, and metering provisions with the necessary electrical documentation. Once installation is complete, the prescribed completion documents are submitted for inspection and testing.
Solar net meter installation and activation
After successful testing and completion of the required connectivity agreement, the approved solar meter connection can be commissioned. KSEB arranges the applicable bidirectional metering and commissioning process under the relevant regulations. Following activation, your electricity bill can reflect recorded imports, exports and applicable energy adjustments. FGE Solar supports customers with the solar net meter installation process, documentation and commissioning coordination.
Frequently Asked Questions About KSEB Net Metering
Get Your KSEB Solar Net Meter Connection with FGE Solar
Planning to install a rooftop solar system in Kerala? From selecting the right system capacity to completing the necessary KSEB procedures, FGE Solar provides assistance throughout your solar installation journey.
- Residential rooftop solar system design.
- Solar installation and equipment selection.
- KSEB technical feasibility and application documentation.
- Solar net meter connection coordination.
- Testing, inspection and commissioning support.
- Solar subsidy application guidance.
- After-installation assistance.
Take the next step towards generating your own electricity and reducing your dependence on grid power.