Only power generated in the customer's own premises could be 'exported'. Customers would not be paid cash for excess power over a meting period (usually a month) but they would be able to carry the excess power forward to be used in the future.
Both Ceylon Electricity Board (CEB), and Lanka Electricity Company (LECO) customers could apply for a licence and sign a 10-year agreement under the purview of the Sustainable Energy Authority.
Customers would then have a two-way metres installed.
The cabinet note said the proposal would have immediate effect.
The net metering would be limited to a capacity 13 kiloWatts for single phase consumers.
Individuals who want to generate more than 40 kiloWatts would have to sign an existing standardised power purchase agreement where a tiered tariff applies.
Power analysts say the net metering facility may be profitable for high users who have to pay exorbitant rates for the last 'blocks' of power.Large users are high extraordinarily high tariffs because Sri Lanka's politicians subsidize small users to buy votes.
Analysts say net metering could therefore reduce profits of the power utility, particularly the CEB.