What Is Netting? An Hourly Netting Guide for Commercial Businesses (2026)
The move from monthly to hourly netting, its effect on the bill, and correct solar plant sizing.
This guide explains, for commercial and industrial businesses, the scope of hourly netting, the difference between self-consumption and surplus generation, the paid generation limit, bill components, sizing based on the consumption profile, and the role of storage.
| TECHNICAL REVIEW | UPDATED | READING TIME |
|---|---|---|
| Alkın Ankaralı — Deputy General Manager, Energy Projects | August 2026 | 13 minutes |
Contents
- Summary in five sentences
- What is netting?
- What is hourly netting?
- Why is self-consumption more valuable?
- Which items on the bill are affected?
- What is the paid generation limit?
- Why is the consumption profile decisive?
- How is the system sized correctly?
- When does storage make sense?
- Five common misconceptions
- Frequently asked questions
- What should you prepare?
The question commercial businesses considering a solar investment ask most often is: “If I feed the electricity I generate into the grid, is it deducted from my bill?”
The answer depends on which regulatory provision the facility is subject to and on the extent to which generation and consumption coincide within the same hours. As of 1 May 2026, hourly netting has begun to be applied at the relevant facilities within the scope of Article 26 of the Regulation. Netting for generation facilities associated with consumption facilities in the residential subscriber group, and the exceptions relating to the generation/sales limit, are assessed under separate provisions; the applicable provisions are determined according to the capacity and regulatory conditions of the facility.
Summary in five sentences
- The netting period is determined by facility category; at facilities within the hourly scope, generation and consumption in different hours are not netted against each other.
- Economic value arises largely from generation matching consumption within the same hour.
- The effect of a solar plant on the bill varies according to the tariff, metering, connection and contract structure.
- The paid generation limit is determined for the relevant facilities by the consumption data and calculation rules in the Regulation; it cannot be reduced to a single previous-year formula.
- Battery economics are assessed on a project basis according to CAPEX, round-trip efficiency, degradation, energy price differential and additional service values.
What is netting?
Netting is the comparison of the generation and consumption quantities of consumption facilities associated with an unlicensed generation facility, within the periods and rules set out in the legislation. Although “net metering” in international literature may describe a similar general idea, it is not an exact equivalent of the legal and financial consequences of netting under Turkish legislation.
Self-consumption occurs when a facility’s generation covers its own consumption at the same time; the comparison of quantities drawn from and fed into the grid according to the periods and rules in the legislation is assessed within the scope of netting. If generation exceeds consumption, surplus arises; if consumption exceeds generation, a draw from the grid arises. How these flows are priced depends on the regulatory provision the facility is subject to, its netting group and current Board decisions.
What is hourly netting?
Hourly netting is the comparison of generation and consumption on the basis of hourly metering values at facilities within the scope of Article 26 of the Regulation. Surplus arising in one hour is not directly deducted from a grid draw in another hour; the result for the relevant hour is calculated separately.
| MONTHLY NETTING | HOURLY NETTING |
|---|---|
| The relevant metering values are aggregated across the billing period. | Each hour is a separate calculation unit. |
| Generation and consumption occurring in different hours can be netted over the totals of the relevant netting period. | The surplus of one hour does not directly cover the draw of another hour. |
| Monthly application is preserved at generation facilities connected to residential consumers. | Applied at facilities within the scope of Article 26 of the Regulation. |
Under the hourly regime, each hour is an independent accounting unit. For example, surplus arising at 13:00 does not directly cover the draw at 19:00; it is classified and assessed separately under the legislation.
Anatomy of an hour
- Netted quantity = the lower of generation and consumption
- Surplus = generation − consumption (if the result is positive)
- Drawn from grid = consumption − generation (if the result is positive)
| EXAMPLE HOUR | CALCULATION RESULT | ASSESSMENT |
|---|---|---|
| 13:00 — generation 380, consumption 240 | Netted: 240 · Surplus: 140 | 140 units are fed into the grid. Whether this energy is treated as paid, unpaid or subject to a system usage fee is determined by the regulatory scope of the facility. |
| 19:00 — generation 90, consumption 380 | Netted: 90 · Drawn from grid: 290 | The surplus at 13:00 does not directly net off the draw at 19:00. |
| Self-consumption effect | The quantity matched within the same hour | The bill effect linked to energy not drawn from the grid arises according to the tariff and metering structure. |
| Surplus | The part of generation exceeding consumption in the same hour | Purchase and pricing calculations are determined by the facility category and legislation in force. |
Why is self-consumption more valuable?
Self-consumed energy, or energy netted within the same hour, reduces the draw from the grid. Its effect on the energy charge, distribution charge and other bill components varies according to the metering point, connection type, subscriber group, tariff, contract and tax structure. For that reason, no single conclusion such as “every netted kWh reduces all variable items to the same extent” can be established.
Which items on the bill are affected?
| BILL ITEM | GENERAL NATURE | POSSIBLE EFFECT FROM SOLAR |
|---|---|---|
| Active energy charge | Energy supplied from the grid | May be affected to the extent the grid draw decreases. |
| Distribution / system usage charges | Charges tied to grid usage and tariff structure | Varies according to the connection, metering and netting structure. |
| Capacity, meter and fixed items | Items independent or partly independent of consumption kWh | In most cases they do not disappear directly. |
| Taxes, funds and other items | Tied to the base amount and regulations in force | May be indirectly affected in line with changes in the main items. |
The purchase of surplus energy and its pricing cannot be explained with a fixed kuruş value. The method to be applied is determined by the facility’s category under the Regulation, its commissioning and support period, the relevant subscriber group, current tariff tables and Board decisions. In an investment feasibility study, the values in force must be checked separately.
What is the paid generation limit?
At generation facilities subject to the relevant provisions of the Regulation, a limit applies to the surplus generation that can be assessed on a paid basis within a calendar year. As a general rule, this limit is twice the total electricity consumption drawn from the grid before netting by the associated consumption facilities in the previous calendar year. Separate calculation rules exist for cases such as new consumption facilities without previous-year data, and current-year consumption exceeding that reference. Because the Regulation also contains exception provisions for generation facilities associated with consumption facilities in the residential subscriber group, the applicable limit must be checked separately according to the capacity and scope conditions of the facility. According to the current official statement of the Republic of Türkiye Ministry of Energy and Natural Resources, the provision on the limit of generation that may be subject to sale does not apply to generation facilities with an installed capacity of 50 kW or below that are associated with consumption facilities in the residential subscriber group.
When the paid generation limit is exhausted, generation and consumption values continue to be netted. Whether the surplus after netting is treated as paid, subject to a system usage fee, or unpaid is determined by the scope of the facility and the current Procedures and Principles. For that reason, the conclusion that “once the limit is full, payment stops uniformly for all surplus energy” cannot be established for every facility.
Why is the consumption profile decisive?
While solar generation rises during the day and approaches zero in the evening, businesses’ load curves vary by shift, season and process. The self-consumption and payback results of two systems of the same size can therefore differ greatly.
| CONSUMPTION PROFILE | EXAMPLE FACILITIES | GENERAL SITUATION UNDER THE HOURLY REGIME |
|---|---|---|
| Daytime-weighted single shift | Production facility, supermarket, school, office | Generation-consumption overlap is generally high. |
| Three shifts / continuous | Continuous production, cold storage | The daytime base may be strong; the coverage ratio depends on the total load. |
| Evening and night weighted | Hotel, restaurant, some processes | Direct overlap may fall; storage analysis may be meaningful. |
| Seasonally fluctuating | Agricultural processing, tourism | Annual and hourly analysis is required; a single month is misleading. |
A sound feasibility study is not based on monthly total kWh alone. Where possible, hourly or 15-minute metering data, the shift calendar and seasonal variations are examined together.
How is the system sized correctly?
Under hourly netting, a “bigger is better” approach is not reliable. The decision is made by assessing the following three limits together:
- Physical limit: usable roof/land, structural suitability, shading and layout.
- Regulatory and technical limit: application category, connection capacity, contracted power, call letter and grid conditions.
- Economic optimum: hourly load profile, self-consumption, the value of surplus, financing and operating costs.
Core data set: consumption for the last 12 months, hourly/15-minute load curve, shift and season information, contracted power and transformer/connection capacity. With this data, the self-consumption ratio and coverage ratio are calculated together. As the system grows, the coverage ratio may increase while the self-consumption ratio may fall. There is no universal “correct kW”.
When does storage make sense?
Hourly netting has made the value of shifting surplus generation to other hours more visible; however, the conclusion that storage is economic does not follow automatically. A BESS decision must be modelled on a project basis.
- Battery and power conversion system investment cost (CAPEX)
- Round-trip efficiency, usable capacity, cycle count and degradation
- The difference in energy/bill value between charging and discharging hours
- Peak management, power quality, outage reduction and back-up value
- Warranty, fire safety, operation-maintenance and financing conditions
Five common misconceptions
- “If I generate more, my bill will be zeroed.” The bill has many components; fixed and capacity-linked items may continue. The value and limit of surplus depend on the facility category.
- “My roof is large, let me install the biggest system.” Installed capacity is selected by assessing physical capacity, regulatory/connection limits and the economic optimum together.
- “The panel brand determines everything.” Layout, shading, inverter architecture, availability and consumption matching are on most projects at least as important as panel selection.
- “I installed it, the job is done.” Monitoring and maintenance are required to preserve performance; a fault directly affects generation-consumption matching.
- “Netting works the same at every facility.” Regulatory scope, subscriber group, call letter/commissioning dates, group structure, tariff and connection type change the result.
Frequently asked questions
When did hourly netting start?
Pursuant to the relevant provisions of the Regulation amendment published in Official Gazette No. 33212 dated 2 April 2026, hourly netting began to be applied from 1 May 2026 at facilities within the scope of Article 26 of the Regulation. The Procedures and Principles on its operation were adopted by Board Decision No. 14531 dated 30 April 2026 and entered into force upon publication in Official Gazette No. 33244 dated 5 May 2026.
Have residential subscribers also moved to the hourly scope?
No. Monthly netting continues to apply at generation facilities associated with consumption facilities in the residential subscriber group. The exception relating to the generation/sales limit is a separate provision: according to the current official statement of the Republic of Türkiye Ministry of Energy and Natural Resources, the provision on the limit of generation that may be subject to sale does not apply to generation facilities with an installed capacity of 50 kW or below that are associated with consumption facilities in the residential subscriber group.
Is my midday surplus deducted from my evening consumption?
At a facility within the scope of hourly netting, different hours are not netted directly against each other. Surplus arising at midday is classified within its own hour; the evening draw is calculated separately.
How is the price of surplus determined?
There is no single universal formula or fixed kuruş value. The facility’s legal category, commissioning and support period, subscriber group, current tariff and Board decisions are applied together.
What happens if my paid generation limit is exhausted?
Netting continues. Which virtual meter/class the remaining surplus after netting is recorded under, and its financial result, are determined by the current Procedures and Principles and the facility category.
What does the date 12 May 2019 signify?
This date is important in the Regulation for various transitional and scope provisions; however, on its own it is not a sufficient test in the form of “all facilities receiving a call letter after this date are unconditionally under hourly netting”. The current hourly scope must be determined principally according to Article 26 of the Regulation and the relevant exceptions.
Is the investment now pointless?
No. At businesses with strong daytime consumption, the value of self-consumption can remain high. The outcome depends on correct sizing, tariff, financing and, where necessary, modelling storage on a project basis.
What should you prepare?
- Electricity bills for the last 12 months
- Hourly or 15-minute consumption data, if available
- Contracted power, connection and transformer information
- Roof area and type, or land information
- Shift pattern and seasonal variation information
With this data set, generation estimate, self-consumption ratio, coverage ratio, surplus generation and storage scenarios can be compared. 11:11 Solar Energy carries out feasibility studies based on hourly consumption profiles, rooftop/ground-mount solar, hybrid and storage solutions and operation-maintenance work for commercial and industrial facilities, according to project scope.
Official sources
- Regulation on Unlicensed Electricity Generation in the Electricity Market (current/consolidated text).
- Regulation Amending the Regulation on Unlicensed Electricity Generation in the Electricity Market — Official Gazette No. 33212 dated 02.04.2026.
- Procedures and Principles on Netting Transactions of Unlicensed Electricity Generation Facilities and Their Associated Consumption Facilities, adopted by Energy Market Regulatory Board Decision No. 14531 dated 30.04.2026 — Official Gazette No. 33244 dated 05.05.2026.
- Republic of Türkiye Ministry of Energy and Natural Resources, Unlicensed Electricity Generation and current legislation pages (accessed: August 2026).
Information note: This guide is for general information purposes. For facility-specific application, current legislation, tariffs and connection documents must be assessed together.