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How to Sell Solar Energy in India Net Metering vs Peer-to-Peer Trading

Kazam Team

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Published on 24th Oct 26

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If your rooftop solar makes more power than you use, you can sell the surplus instead of wasting it. In India there are two main ways to do that. Net metering sends your surplus to your DISCOM and credits it against your bill at a rate your state sets. Peer-to-peer (P2P) energy trading lets you sell it directly to other consumers at a price you agree on, with the DISCOM's grid carrying the power and its bill settling the payment. P2P trading is new and runs only in pilot areas so far, but it is the first option that lets you set your own price.

Why solar owners end up with surplus power

Rooftop solar produces most during the middle of the day. That is often when homes use the least: people are at work, children at school. The surplus has to go somewhere. Without a way to sell it, it either earns you very little or nothing at all.

Way 1: Net metering

Net metering is the most common way to sell solar energy in India today.

• A bidirectional meter records the power you draw from the grid and the power you export to it

• At billing, exports are set off against imports, so you pay only for the net units you used

• Surplus left over at the end of the settlement period is paid at a rate set by your state regulator, usually lower than what you pay to buy power

Net metering is simple and widely available. Its limit: the DISCOM is your only buyer, and the regulator sets the price.

Way 2: Peer-to-peer solar energy trading

P2P energy trading turns your surplus into something you can sell to another consumer.

• You list your surplus on a digital trading platform

• A buyer, such as a neighbour, a business or another household, agrees to buy it at a price you both accept

• The power flows through the existing grid; nobody runs a new cable

• Smart meters record exactly when you exported and when the buyer drew power

• The DISCOM settles the trade through its normal billing, and you are paid for what you sold

For sellers, P2P can pay more than the net metering rate. For buyers, it can cost less than the grid tariff. That gap is what makes the market work.

Net metering vs P2P trading at a glance

Net metering

• Buyer: your DISCOM

• Price: set by the state regulator

• Availability: most states

• What you need: rooftop solar and a net meter

Peer-to-peer trading

• Buyer: other consumers on the platform

• Price: agreed between buyer and seller

• Availability: approved pilot areas only, so far

• What you need: rooftop solar, a smart meter with time-stamped import and export data, and a trading platform

Where P2P trading is allowed today

In February 2026, India's first regulator-approved P2P solar trading pilots were cleared:

• Delhi: The Delhi Electricity Regulatory Commission (DERC) approved a six-month pilot for P2P solar trading, petitioned by Tata Power Delhi Distribution Limited (TPDDL). It covers trades within Delhi and across states.

• Uttar Pradesh: The UP Electricity Regulatory Commission (UPERC) approved a six-month pilot for P2P trading between consumers of Paschimanchal Vidyut Vitran Nigam Limited (PVVNL) and Delhi's distribution companies.

Key terms of the pilots:

• Prices are discovered between buyers and sellers on the platform

• A transaction charge of Re 0.42 per kWh, including GST, split equally between buyer and seller

• Wheeling charges waived for trades within TPDDL's area and within Delhi

• Trades are settled through the DISCOM's existing billing

• The pilots run under the India Energy Stack, the national digital framework for the power sector

Regulators will review the pilots before setting long-term rules, so expect P2P trading to expand to more DISCOMs over time.

What you need to sell solar energy through P2P trading

• A rooftop solar system that produces more than you use during the day

• A smart meter that records time-stamped imports and exports

• A connection in a participating DISCOM area

• An account on a P2P trading platform to list surplus and receive payment

You don't need new wiring, batteries or extra equipment beyond a compatible smart meter.

Sell solar energy with Kazam BUZZ

Kazam BUZZ is Kazam's marketplace for buying and selling solar energy, run in collaboration with the Ministry of Power.

• Sell, buy or both from the BUZZ app on Android and iOS

• No new infrastructure: works with your existing solar and net meter setup, as long as you have a compatible smart meter

• Paid in cash directly to your bank account for the energy you sell

• Buyers need no extra equipment and can buy power at cheaper-than-grid rates

Frequently asked questions

Can I sell solar energy in India?

Yes. Through net metering, your DISCOM credits or pays for the surplus you export. In approved pilot areas, you can also sell surplus directly to other consumers through peer-to-peer trading.

What is peer-to-peer solar energy trading?

It is a way for solar owners to sell surplus power directly to other consumers at a price both agree on, using the existing grid and settled through the DISCOM's billing.

Where is P2P energy trading allowed in India?

As of February 2026, regulators approved pilots in Delhi (TPDDL) and Uttar Pradesh (PVVNL, for trades with Delhi DISCOMs). More areas are expected after the pilots are reviewed.

Do I need a battery to sell solar energy?

No. Surplus power flows into the grid as you produce it. You need a smart meter that records when you export.

How do I get paid for selling solar energy?

With net metering, the surplus is adjusted in your bill. On a P2P platform such as Kazam BUZZ, you are paid for the energy you sell, directly to your bank account.

Is there a fee for P2P energy trading?

Under the Delhi and UP pilots, a transaction charge of Re 0.42 per kWh including GST is split equally between buyer and seller.

Start selling your surplus solar

Download the BUZZ app or learn more about Kazam BUZZ to see whether you can sell solar energy in your area.

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