Guide
Unlicensed solar and net metering explained
With solar panels on your roof, you use part of the output at once and part flows to the grid. Netting rules decide how both flows show on your bill. This guide explains the concepts in plain words and shows where to confirm the current rules.
Short answer
Unlicensed generation is the name used for plants built mainly to cover their own consumption that connect to the grid without a generation licence, under conditions set by regulation. Most rooftop solar energy systems are planned within this frame. Net metering means offsetting the electricity you produce against what you consume over a set period. The length of that period, how excess output is treated and the limits are set by regulation and can change; confirm the current rule with the official source before you invest.
This guide was prepared by the Ufkon editorial team and reviewed on 19 Oct 2026. It is for information only and does not replace legal, financial or technical advice.
What does unlicensed generation mean?
Generating electricity for the market generally requires a licence. Unlicensed generation describes small and mid-size plants, usually tied to a consumption point, for which regulation waives the licence under certain conditions. Solar panel systems on homes, businesses and factories are mostly planned in this frame.
Which plants qualify, capacity limits, the link to consumption and the application documents are set by regulation, and these rules are updated over time. So this page gives no specific limit, ratio or date; we recommend reading them in the official text.
How does net metering work?
Solar panels produce during the day. Devices running at that moment use the power directly; this is self-consumption. When output exceeds consumption, the excess goes to the grid. In the evening and at night you draw from the grid. A bidirectional meter measures both flows separately.
Net metering offsets the energy you export against the energy you import over a set period. The bill is based on the net consumption left after this calculation. How excess output is valued is set by the same rules.
Why the netting period matters
A longer period lets daytime excess cover evening use within that period. A shorter period, for example separate hours within the same day, makes using power as it is produced more valuable. So the netting rule directly shapes system size, the self-consumption share and whether a battery makes sense.
Your tariff group can matter
Rules can differ for residential, commercial and industrial subscribers. Ask the installer to state which tariff group and netting rule the yield and savings estimate assumes.
Terms you will meet in a bid
| Term | Meaning | Why it matters |
|---|---|---|
| Self-consumption | Output used on site at the moment it is produced | Directly cuts energy drawn from the grid |
| Excess output | Energy above consumption that goes to the grid | How it is valued depends on regulation |
| Netting period | The time window in which export and import are offset | A short window raises the value of self-consumption |
| Bidirectional meter | Meter that records export and import separately | The basic data of the netting calculation |
| Connection opinion and agreement | The process that sets how the plant joins the grid | Affects schedule and connection cost |
Questions to ask before applying
Application steps and documents vary with plant size, connection type and current rules. The installer or its engineering team usually handles them. Ask these at the bid stage:
- Which rules will my project fall under, and what is the official basis?
- Which netting assumption does the yield and savings estimate use?
- Who handles the application, design approval and connection, and is the cost included?
- Is there any known grid capacity limit in my area?
- How are approval times reflected in the schedule?
Rules on unlicensed generation and net metering are issued by the Energy Market Regulatory Authority (EPDK) and published in the Official Gazette. For the local connection process, contact your electricity distribution company. This page is not legal advice.
Effect on system size
Netting rules do not always support "the bigger the better". If excess output is worth little, a size matched to your consumption can work better. Businesses and factories with high daytime use benefit more from self-consumption; at home, evening use matters more.
Bids prepared on the same assumptions make comparison meaningful. When you create a project request your name stays sealed; interested approved firms unlock it and message you. Ufkon never installs and takes no commission. See how it works.
Practical ways to raise self-consumption
Whatever the rules, using power as it is produced is usually its most valuable use, and small habits help, which also gets more from your renewable energy investment:
- Shift flexible loads such as washing machines, dishwashers and water heaters to daytime.
- In businesses, plan large loads such as cooling, compressors and pumps around the output profile.
- Track output and consumption curves together in the monitoring app.
- If evening use is high, review a battery; if demand will grow, review system size with the firm.
Frequently asked questions
What happens to the electricity I export?
Energy above your consumption goes to the grid. How it is counted in netting and whether it is paid for depends on current regulation; ask the firm to state its assumption in writing and confirm it with the official source.
What is hourly net metering?
It describes netting export and import hour by hour. Which subscribers it applies to and from when are set by regulation; confirm the current status with EPDK announcements and your distribution company.
Can I install unlicensed solar at home?
Solar panels on home roofs are common. The installer and the distribution company confirm the connection conditions after the site survey. Start with solar panels for homes.
What if the netting rules change?
Rules can be updated and may include transition provisions. Before signing, ask the installer and official sources how a change applies to existing and new applications.
Does Ufkon file the application?
No. Ufkon does not file applications, never installs and takes no commission. You reach approved firms through your project request; the application and installation follow your contract with the firm you choose.
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