Net Metering in Hyderabad 2026: How TSSPDCL Pays You Back for Every Solar Unit You Export

What is Net Metering?

Net metering is a billing arrangement between you and your electricity distributor — in Hyderabad, that is TSSPDCL (Telangana State Southern Power Distribution Company Limited). When your solar panels generate more electricity than your home is using at that moment, the surplus flows back into the grid. A bidirectional meter records both how much you import from the grid and how much you export.

At the end of the billing cycle, TSSPDCL calculates your net consumption: units consumed minus units exported. You are billed only for the net figure. If you exported more than you consumed, the credit carries forward to the next month.

This is fundamentally different from a solar system with battery storage — you're using the grid itself as a virtual battery, which is far cheaper than buying physical batteries.

How TSSPDCL Net Metering Works — Step by Step

What Does TSSPDCL Pay Per Unit? (The Critical Detail)

This is where most online guides get it wrong. TSSPDCL operates a net billing model, not a gross feed-in tariff. The export is credited at the same retail tariff rate you pay for consumption — not at a lower wholesale rate.

For a domestic consumer using 200–500 units/month, the applicable slab rate in 2026 is roughly ₹4.50–₹6.50 per unit. That is the effective credit value of each unit you export during peak solar hours. For comparison, if you consumed that same unit during evening peak hours instead of exporting it mid-day, the value is identical.

This 1-for-1 credit structure is why on-grid solar with net metering in Hyderabad has 3–5 year payback periods — it's one of the most financially attractive markets in India.

Real Example: A 3kW System in Jubilee Hills

TSSPDCL Net Metering Application Process

Your solar installer handles the net metering application — it runs parallel to (or just after) the solar installation. Here is what the process looks like:

• Step 1: Apply online via the PM Surya Ghar National Portal or TSSPDCL's consumer portal. Your installer submits this on your behalf.
• Step 2: Feasibility check — TSSPDCL verifies your existing meter, supply voltage, and that system size is within the sanctioned load capacity of your connection.
• Step 3: Technical inspection — TSSPDCL sends a JE (Junior Engineer) to inspect the installation, earthing, and AC switchgear.
• Step 4: Bidirectional meter installation — TSSPDCL replaces your existing electricity meter with a net meter that records both import and export. This is done at TSSPDCL's cost.
• Step 5: Commissioning and billing starts — from the next billing cycle, your bill reflects net consumption only.

Timeline: typically 30–60 days from application submission. Delays happen during policy transitions and high application volumes. Solar Cubic tracks all applications and follows up with TSSPDCL on your behalf until commissioning is complete.

System Size and Net Metering: Why Getting the Math Right Matters

TSSPDCL allows net metering for systems up to 1MW for residential connections, but practically, most Hyderabad homes install 1kW–10kW. The key rule: your system capacity should not exceed your sanctioned load. A connection with 5kW sanctioned load can install up to a 5kW system without a sanctioned load upgrade.

More importantly, system size should be matched to annual consumption — not to just peak summer consumption or just to export as much as possible. Over-sizing leads to credits that lapse at year-end. Under-sizing means you keep paying high bills during summer peak months.

The ideal sizing approach: calculate annual kWh consumption from 12 months of bills, then size the solar system to generate 90–100% of that annual figure. A shadow-free south-facing roof in Hyderabad generates approximately 1,400–1,500 kWh per kW per year.

Net Metering vs Battery Storage: Which is Better in Hyderabad?

For most Hyderabad homeowners (especially Jubilee Hills, Banjara Hills, Gachibowli, HITEC City) where TSSPDCL supply is reliable, on-grid with net metering is the right choice. The financial case is cleaner, the subsidy is available, and ROI is faster.

Common Questions About Net Metering in Hyderabad

Will I get a negative electricity bill?

Not literally negative — TSSPDCL does not pay cash. But your bill can effectively be ₹0 if your credits exceed your consumption for that month. Surplus credits roll over to the next month. Over the year, a well-sized system reduces your annual electricity cost by 70–90%.

What happens if I export more than I consume annually?

Year-end surplus units that cannot be adjusted against future bills may lapse under the current TSSPDCL policy. This is why system sizing matters — a 3kW system for a household consuming 200 units/month will generate roughly 350–400 units/month in summer and send a large surplus to the grid that may not fully be recovered in winter. Always match system size to annual consumption.

Does net metering work for three-phase connections?

Yes — TSSPDCL installs three-phase bidirectional meters for three-phase consumers. Larger systems (above 5kW) typically require three-phase connections. Solar Cubic installs and commissions three-phase net metering systems across all Hyderabad areas.

Can I upgrade my system later and update the net meter?

Yes, a fresh application needs to be submitted to TSSPDCL upon system capacity change. The existing net meter reading is frozen and a new meter installed after inspection. Plan your system capacity upfront if you anticipate buying an EV or adding AC units — it avoids repeat TSSPDCL paperwork.