Is banking the same as net metering?

No. Net metering nets consumption and generation within a much shorter billing cycle, generally for smaller rooftop systems. Banking under Open Access typically applies to larger captive or third-party generation and operates over longer settlement windows set by the state regulator.

Does banked energy expire?

In most state frameworks, yes — unutilised banked energy is typically lapsed without compensation at the end of the banking period, though the exact treatment varies by state and is a frequent subject of regulatory dispute.

REGULATORY TOPIC

Banking (Open Access)

Last reviewed 20 August 2026

What this means

Banking allows a green energy Open Access consumer to inject surplus generation into the DISCOM grid and draw an equivalent quantum back later — bridging the gap between when renewable power is generated and when it is actually consumed. Banking periods, applicable charges, and carry-forward rules differ by state and are among the most actively contested elements of Open Access regulation today.

What is banking?

In a Green Energy Open Access (GEOA) arrangement, a consumer’s captive or third-party generator rarely produces exactly as much power, at exactly the moment, as the consumer needs. Banking is the regulatory mechanism that reconciles this mismatch: surplus generation exported to the grid at one time is “banked,” and the consumer draws down an equivalent quantum later, typically within a defined settlement window.

Without banking, a purely real-time accounting of renewable generation against consumption would make solar and wind far less viable for continuous industrial loads, since generation and demand profiles rarely align hour to hour.

Why it matters for C&I consumers

For commercial and industrial consumers, banking terms directly affect the economics of an Open Access contract. A shorter banking window, a higher banking charge, or restrictions on time-of-day (TOD) withdrawal can all erode the savings a captive or group-captive renewable project was expected to deliver.

How states differ

Banking rules are set independently by each State Electricity Regulatory Commission and vary on several dimensions: the length of the banking period (monthly, bi-monthly, or annual), whether banked energy can be withdrawn at any time-of-day slot or only within the same TOD band it was injected, whether a banking charge — typically a percentage deduction — applies, and how unutilised banked energy is treated at the end of a settlement cycle.

Frequently asked questions

Is banking the same as net metering?: No. Net metering nets consumption and generation within a much shorter billing cycle, generally for smaller rooftop systems. Banking under Open Access typically applies to larger captive or third-party generation and operates over longer settlement windows set by the state regulator.
Does banked energy expire?: In most state frameworks, yes — unutilised banked energy is typically lapsed without compensation at the end of the banking period, though the exact treatment varies by state and is a frequent subject of regulatory dispute.