With the rise of solar energy adoption in India, more homeowners and businesses are now wondering how to sell electricity to government and benefit from government buyback schemes. From subsidies to net metering policies, India’s energy sector offers several pathways to become a clean energy contributor and earn from it.

This blog is your comprehensive guide to understanding how to sell electricity to government, including the process, documentation, returns, and technical setup required.

Why Selling Solar Electricity to the Government Is Gaining Popularity

According to a report by IBEF, India added 15.2 GW of solar capacity in 2023, making it one of the world’s leading countries in solar energy production source. The Indian government promotes decentralized solar adoption through initiatives like the PM Surya Ghar Yojana, where consumers can not only power their homes but also sell surplus electricity to the government.

Who Can Sell Electricity to the Government in India?

Anyone who installs a solar power system — whether it’s a residential user, business, school, or institution — can sell electricity under net metering or gross metering mechanisms.

Eligibility Criteria

• A valid electricity connection from a DISCOM.
  
• Solar system installed by an approved vendor.
  
• System size usually between 1kW to 1MW.
  
• Availability of a bi-directional (net) meter.
  

This is why it’s crucial to learn how to read a solar meter, as your earnings depend on accurate energy export readings.

Step-by-Step Guide on How to Sell Electricity to Government

Rooftop Solar or Ground Mount?

You can opt for rooftop solar installation on your building or install ground mounted solar panels if you have open land. Rooftop installations are preferred in urban settings, while ground mounts suit rural or industrial spaces.

Choose the Right Business Model

There are two main models:

• CAPEX model solar: You invest upfront and own the system.
  
• OPEX/RESCO model: A third-party investor installs and owns the system; you only pay for energy.
  

For those who want full control and better returns, the CAPEX model solar is ideal.

Apply for Net or Gross Metering

• Net Metering: You only pay for the net energy consumed (import minus export).
  
• Gross Metering: All energy is exported to the grid; you’re paid a fixed tariff.
  

Each state has different policies. Check with your local DISCOM (distribution company).

Installation & Inspection

Hire a rooftop solar installation company that is empaneled by the government. The setup will include panels, inverters, cables, and a solar meter.

Once installed, the system is inspected by DISCOM officials before approval.

Documentation Required to Sell Electricity

To sell power back to the grid, you need to submit:

• Installation proof
  
• ID and address proof
  
• Electricity bill
  
• NOC from society or municipality (if applicable)
  
• Agreement with the DISCOM
  

Make sure your system follows BIS standards and has MNRE-approved components.

How Much Money Can You Make?

Your earnings depend on:

• System size (e.g., 3kW, 5kW, 10kW)
  
• Daily sunlight hours (5-6 hours/day average)
  
• State tariff rates (₹2 – ₹6 per kWh)
  

For example:
A 5kW solar system can generate approx. 600 units/month.
If exported fully at ₹3.5/unit, monthly earnings = ₹2,100.

In a year, that’s ₹25,200. Multiply this over 25 years of lifespan and you’re looking at ₹6.3+ lakhs.

Key States Promoting Solar Electricity Sale

Gujarat

Offers up to ₹2.25/kWh for excess power under the Surya Gujarat scheme.

Maharashtra

Tariffs around ₹3.15/kWh; strong urban rooftop push.

Delhi

Generous subsidy and net metering up to 10kW systems.

Check your state electricity board website for latest tariffs and updates.

Maintenance and Costs Involved

Though solar systems are low maintenance, you must account for periodic expenses:

• Solar panel maintenance cost: ~₹2,000–₹5,000 per year
  
• Cleaning, inverter replacement (~10 years), and annual inspections
  
• Wiring checks and panel performance monitoring
  

Choosing Tier-1 quality components reduces long-term costs.

Tax Benefits & Depreciation

Businesses can claim accelerated depreciation on solar panels at 40% per year (as per current tax laws). This helps in quick ROI and reduces taxable income.

Additionally, residential users can claim subsidies under MNRE schemes of up to ₹78,000 for a 3kW system.

Best Practices to Maximize Your Returns

1. Optimize Panel Direction and Tilt

South-facing at 30° is generally ideal for most of India.

2. Choose the Right Mounting Structures

There are various types of mounting structures for solar panels – fixed tilt, adjustable tilt, and tracking mounts. Tracking mounts increase efficiency but cost more.

3. Minimize Shading and Dust

Install where there’s no shade from trees or nearby buildings. Use anti-dust coating or automated cleaning if feasible.

4. Invest in Quality Cutting Technology

Use precision solar cutting techniques to avoid cell damage during installation. High-quality edge finishing improves durability.

Choosing the Right Solar Vendor

To avoid delays and ensure quality, go with an MNRE-registered rooftop solar installation company that offers:

• End-to-end service (design to net metering)
  
• Warranty of 25 years on panels
  
• Real-time monitoring apps
  
• Easy subsidy claims
  

You can also explore vendors with expertise in ground mounted solar panels if space allows.

Common Challenges in Selling Electricity to Government

• Bureaucratic delays in DISCOM approval
  
• Inconsistent meter readings
  
• Tariff revisions or policy shifts
  
• Local electricity board not supporting gross metering

Still, with persistence and the right partner, most users successfully start selling within 3–6 months of installation.

Conclusion

Selling electricity to the government in India is no longer limited to large solar farms or power producers; today, even homeowners and small businesses can generate income by exporting surplus solar energy back to the grid. With the growing push for renewable energy, understanding how to sell electricity to government is both timely and financially rewarding.

Whether you choose a rooftop setup in a city or ground mounted solar panels in a rural area, the process becomes easier with proper planning, licensed vendors, and awareness of your state’s solar policy. Investing under the CAPEX model solar ensures long-term returns, while benefits like depreciation on solar panels and low solar panel maintenance cost further boost profitability.

To maximize efficiency, focus on the right types of mounting structures for solar panels, use precision solar cutting for cleaner installations, and understand how to read a solar meter accurately. Partnering with a professional rooftop solar installation company ensures compliance with DISCOM norms and faster metering approvals.

The Indian government’s net and gross metering systems are empowering citizens to play an active role in energy production. By taking advantage of these initiatives, you not only contribute to a greener planet but also create a steady revenue stream for the long run.

FAQ’s

How to earn money by selling electricity?

There are several ways to generate revenue from solar power. You can sell excess electricity back to the grid through net metering, lower your electricity bills by using the power yourself, or participate in community solar models where you share energy and profits with others. These options provide flexibility to maximize returns from your solar installation while contributing to a sustainable energy ecosystem.

How much is 1 MW of electricity worth in India?

In India, the establishment of 1MW solar power plants usually from £. It costs between 5 crores. It varies depending on several factors, including investment placement, technology and installation types. One of the leading contributors to total costs is the solar panel, which is available in different types such as monocrystalline, polycrystalline line and thin films. The panel’s choices affect both the efficiency and pricing of the plant, making it an important component of the solar project plan.

Who is eligible for PM Surya Ghar?

To qualify for the PM Surya Ghar Muft Bijli Yojana, applicants must be Indian citizens who own a house with a suitable rooftop for solar panel installation. They should have a valid electricity connection and must not have previously received any solar panel subsidy. This scheme’s goal is to provide free electricity to households by allowing them to generate power through rooftop solar panels, promoting clean energy and reducing electricity costs for eligible beneficiaries.