KSEB Net Metering 2025 — How It Works and What's Changing
The complete guide to net metering in Kerala — including the new KSERC 2025 regulations
explained in plain language. Who's affected, what changed, and what it means for you.
The Basics
What Is Net Metering?
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.
⚠ New in 2025
The New KSERC 2025 Regulations — Plain Language
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
→
Net metering is now limited to 3kW for new residential solar systems (previously
the limit was 1MW for residential).
→
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).
→
Systems above 3kW without battery: net billing applies instead of net metering —
export is compensated at a lower rate, which is less favourable.
→
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.
