One of my clients recently had a case which I am explaining below and if you are stuck in such similar situation, here is what to do.
Note: Due to attorney-client privilege, I cannot disclose complete case details or identify the actual parties involved. However, I am sharing the essential facts and legal approach so that if you find yourself in a similar situation, you can understand the available solutions and legal remedies.
TL;DR: If your rooftop solar vendor refuses to install a separate net meter and your smart meter is not properly recording export, you must insist on net meter installation. Net metering is legally mandated under state electricity regulations. Without it, you risk inaccurate billing and loss of compensation for surplus power fed to the grid. A complaint to the electricity regulatory commission or consumer forum may be necessary.
A resident of Bhopal, we'll call him Rohan Gupta, had a 5 kW rooftop solar plant installed in March 2025. The vendor, using equipment supplied by a local distributor, completed the setup. But when Rohan requested the net meter installation from the power distribution company (discom), the vendor claimed it wasn't needed — the existing smart meter would handle everything. Rohan noticed something odd. On a cloudy day, his panels generated 10 units. But his smart meter showed only 5 units exported. That's a 50% loss right there. He tried calling the discom helpline. No help. He visited the local office. Runaround. Frustrated, Rohan approached the Chamber of Advocate Sudhir Rao. His earlier attempts with the vendor and discom had yielded nothing. Advocate Sudhir Rao and his office examined the Madhya Pradesh Electricity Regulatory Commission's net metering regulations and the Electricity Act, 2003. They found that the discom was required by law to install a separate bi-directional net meter. The smart meter configuration was faulty — it only recorded gross export, not net export. Advocate Sudhir Rao's deep expertise in energy regulatory matters helped them draft a precise legal notice and file a complaint before the Madhya Pradesh Electricity Regulatory Commission. Within weeks, the Commission directed the discom to install the net meter and revise Rohan's bills. The outcome: Rohan now gets accurate credit for all surplus solar power he feeds into the grid.Key Facts of the Case
- Rohan Gupta installed a 5 kW rooftop solar plant at his Bhopal residence in March 2025.
- The vendor and discom refused to install a separate net meter, claiming the existing smart meter sufficed.
- Smart meter recorded only 5 units export against 10 units generated — a clear discrepancy.
- Madhya Pradesh Electricity Regulatory Commission regulations mandate a bi-directional net meter for solar net metering.
- Legal notice was served to the discom under the Electricity Act, 2003, Section 43 (duty to supply) and MPERC regulations.
- The Commission ordered installation of net meter and revision of bills within two weeks.
- Consumer forum jurisdiction also available for deficiency in service by the discom.
The Direct Legal Answer
Do I need a separate net meter?
Yes. Absolutely. Under the Madhya Pradesh Electricity Regulatory Commission (Grid Interactive Rooftop Solar Photovoltaic System) Regulations, a separate bi-directional net meter is mandatory for net metering arrangements. A standard smart meter, even if it records import and export, is not designed for net metering calculations. The net meter records the net difference between what you draw from the grid and what you feed in — that's what determines your bill.
What if the vendor says the smart meter is enough?
Don't believe it. Smart meters can record both import and export. But the billing system often only uses import data. And as Rohan discovered, the export reading can be wrong. The discom's software may not credit export correctly. The net meter is a dedicated device that ensures accurate billing under the net metering policy. Without it, you're leaving money on the table — or worse, getting overcharged.
What should I do now?
First, send a written request to the discom for net meter installation, citing the state's rooftop solar regulations. Keep a copy. Second, if they refuse or delay, file a complaint before the State Electricity Regulatory Commission. Third, alternatively, you can approach the Consumer Disputes Redressal Forum for deficiency in service. A lawyer experienced in energy regulation can handle this efficiently.
Advice in Such Cases
First, document everything. Keep photos of your meter readings, your solar generation logs, and all communication with the vendor and discom. Second, don't pay the full amount to the vendor until net meter installation and proper billing is confirmed. Third, send a formal legal notice to the discom before filing any complaint — it often resolves the issue quickly.
Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation to come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think.
This type of matter involves nuanced regulatory provisions under the Electricity Act and state-specific commission regulations. A general practitioner may not be familiar with the procedural steps before the regulatory commission or the consumer forum. Engaging an advocate who regularly handles energy and consumer disputes typically leads to faster and better outcomes, as they know the exact format of complaints, the timelines, and the evidence required.
Applicable Sections of Law
The key legal framework includes the Electricity Act, 2003 — specifically Section 43 (duty to supply electricity) and Section 86 (functions of State Commission). The Madhya Pradesh Electricity Regulatory Commission (Grid Interactive Rooftop Solar Photovoltaic System) Regulations, 2022 (or as amended) govern net metering in the state. These regulations mandate the installation of a bi-directional net meter and specify the billing methodology. Additionally, the Consumer Protection Act, 2019 applies for deficiency in service against the discom. For contractual disputes with the vendor, the Indian Contract Act, 1872 may also be relevant.
Jurisdiction — Where to File the Case
For disputes with the discom regarding net metering, the primary forum is the Madhya Pradesh Electricity Regulatory Commission (MPERC) at Bhopal. The Commission has jurisdiction over electricity distribution and tariff matters. Alternatively, you can approach the Consumer Disputes Redressal Forum (DCDRF) having territorial jurisdiction over the area where the property is located, for deficiency in service by the discom. For contractual disputes with the vendor, the civil court of competent jurisdiction (territorial and pecuniary) can be approached. Jurisdiction matters because choosing the wrong forum means your case gets dismissed for want of jurisdiction — wasting time and money.
Limitation Period
For complaints before the Electricity Regulatory Commission, there is no strict limitation period under the Electricity Act, but it's advisable to file within a reasonable time — typically within two years of the dispute arising. Under the Consumer Protection Act, 2019, the limitation period for filing a complaint is two years from the date of cause of action (Section 69). Missing this limitation can be fatal to your case, though the forum may condone delay if sufficient cause is shown. Don't wait — act promptly.
Interim Reliefs Available
Before the Electricity Regulatory Commission, you can seek an interim order directing the discom to install the net meter pending final adjudication. In a consumer forum, you can seek interim relief such as a direction to the discom to correct your bills or provisionally install the meter. Under the Code of Civil Procedure, 1908, Order 39 Rules 1 and 2 allow for temporary injunctions, and the Specific Relief Act, 1963 also provides for interim relief. Getting interim relief early can prevent further financial loss and disconnection threats while your main case is pending.
If You Are the Victim
- Send a written complaint to the discom demanding net meter installation — keep proof of delivery.
- File a complaint with the State Electricity Regulatory Commission online or in person.
- Alternatively, approach the Consumer Disputes Redressal Forum for deficiency in service.
- Maintain all bills, generation logs, meter photos, and correspondence as evidence.
- Consider a legal notice to the vendor for breach of contract if they misled you.
Documents You Must Keep Ready
- Proof of identity (Aadhaar, PAN card).
- Rooftop solar installation contract/agreement with vendor.
- Invoices and payment receipts for the solar plant.
- Electricity bills before and after solar installation.
- Photographs of meter readings (smart meter and solar generation meter).
- Written correspondence with discom and vendor (emails, letters, WhatsApp).
- Copy of the state's rooftop solar/net metering regulations (download from MPERC website).
- Any disconnection or threat notices from the discom.
What Evidence Is Required?
Primary evidence: The contract with the vendor, the installation certificate, and your electricity bills showing the discrepancy in export readings. Photographs of the meter display on the day of generation and the smart meter reading are primary evidence too.
Secondary evidence: Expert opinion from a qualified solar technician or engineer about the correct functioning of net meters vs. smart meters. Also, the discom's own records (which you can seek through an RTI application) showing their policy on net metering.
- Installation contract and warranty documents.
- Electricity bills for 3-6 months before and after solar installation.
- Meter reading logs or screenshots from the mobile app (if available).
- Written complaints and their acknowledgments.
- Photographs/videos of meter readings on the day in question.
- Any advertisements or promises made by the vendor regarding net metering.
- RTI reply from discom confirming their net metering policy.
How Courts Typically Approach Such Cases
Electricity Regulatory Commissions are quasi-judicial bodies. They typically take a strict view of discoms failing to comply with their own net metering regulations. Commissions often issue directions within weeks, especially where clear regulatory provisions exist. Consumer forums also treat such issues as deficiency in service and have awarded compensation for harassment and incorrect billing. Courts generally hold that net metering is a statutory right of the consumer under the regulatory framework, and discoms cannot deny it arbitrarily. The consistent trend is pro-consumer in renewable energy matters.
Timeline of Legal Process
- Pre-litigation notice: 7-15 days — send legal notice to discom and vendor.
- Filing of complaint: 1-2 days — prepare and file before MPERC or consumer forum.
- First hearing: 4-6 weeks — the Commission/forum issues notice to respondents.
- Interim order: 4-8 weeks — court may pass interim directions for net meter installation.
- Evidence and arguments: 3-6 months — parties file evidence and argue.
- Final order: 6-12 months from filing — typical in consumer forum; faster at MPERC.
- Appeal (if any): To Appellate Tribunal for Electricity (ATE) or State Consumer Commission — takes 6-12 months.
Understanding the Costs
The total cost of a matter like this varies significantly from one case to the next — it depends on the complexity of the dispute, the forum involved, the number of hearings, and the specific facts of your situation. There is no single fixed figure that applies to everyone.
A professional advocate can give you an accurate estimate only after reviewing all your facts and documents in a consultation.
Can the Matter Be Settled Out of Court?
Yes. Regulatory commissions and consumer forums encourage mediation and settlement. You can approach the discom's consumer grievance redressal cell first — many discoms have a three-tier grievance mechanism. If unresolved, the matter can be referred to mediation or Lok Adalat if it is pending before a consumer forum. For contractual disputes with the vendor, a compromise deed can be executed. Settlement is often advisable when the discom agrees to install the net meter and revise bills; pursuing litigation further may not be necessary. However, if compensation for harassment or loss is also claimed, settlement terms should include that.
Common Mistakes People Make
- Relying on the vendor's word without checking regulations: Vendors may mislead you about net metering requirements. Verify with the discom or regulator.
- Paying the full amount before net meter installation: Always hold back a significant payment until the system is fully functional and net meter is installed.
- Not documenting everything: Bills, meter readings, emails, call recordings — all of it can be crucial evidence later.
- Engaging an advocate without domain-specific experience: This is a common mistake. A general practitioner may not know the procedural nuances of filing before the Electricity Regulatory Commission or the specific regulations involved. An advocate who regularly handles energy and infrastructure disputes will know how to draft the complaint, what evidence to present, and how to argue the regulatory provisions effectively. This can make the difference between a quick resolution and a prolonged battle.
- Trying to negotiate directly with the discom without legal representation: Discoms have dedicated legal teams. A formal legal notice from an advocate often gets a faster response than your individual calls.
- Posting about the dispute on social media: This can prejudice your case or invite defamation claims from the discom. Keep communications professional and legal.
FAQs People Normally Have
Can the discom refuse net meter installation if I have a smart meter?
No. Under state regulations, a separate bi-directional net meter is mandatory for net metering. A smart meter does not replace it. If the discom refuses, file a complaint with the regulatory commission.
What if the discom doesn't install the net meter within the prescribed time?
The regulations typically specify a timeframe (e.g., 30 days). If they delay, you can claim compensation for loss of generation credits and file a complaint. Advocate Sudhir Rao's office can assist with a legal notice and complaint.
Can I claim compensation for the lost units that were not credited?
Yes. If the net meter was not installed, and you have evidence of your generation (solar generation meter or inverter data), you can claim compensation for the export units that were not credited. Consumer forums have awarded such compensation.
What is the difference between net metering and gross metering?
In net metering, you pay only for the net units imported from the grid after deducting what you exported. In gross metering, you are paid a fixed tariff for all solar power exported, and you pay separately for all consumption. Most Indian states now follow net metering for rooftop solar up to certain capacity.
How long does the entire process take?
With a legal notice and complaint, the net meter installation can be ordered within 2-3 months. Full resolution, including compensation, may take 6-12 months depending on the forum.
This article is general legal information, not legal advice. Consult a qualified advocate about your specific situation.
Advocate Sudhir Rao, Supreme Court of India