TGERC replaces 2016 net metering rules with new rooftop solar regulation

The Telangana Electricity Regulatory Commission has issued a new framework for rooftop solar. The 2016 net metering rules now stand repealed and replaced by the Telangana Electricity Regulatory Commission Rooftop Solar PV Grid Interactive Systems Regulation 2025. The order took effect on November 15 after its publication in the State Gazette.

The Commission said the update was needed because many stakeholders and distribution companies had asked for changes that align with the Electricity Act 2003. Using its powers under Sections 61, 66, 86(1)(e) and 181 of the Act, the Commission has now superseded the 2016 regulation and its 2021 amendment.

The new framework widens the scope of rooftop solar in the state. It covers distribution licensees, all eligible consumers, and third party owners of rooftop systems. It also defines four arrangements. These are net metering, group net metering, gross metering, and virtual net metering.

Consumers in all categories except temporary supply can use net metering for systems up to 500 kWp. They can choose gross metering for capacities up to 1 MWp. Group and virtual net metering are allowed for systems below 100 kWp. Group net metering is limited to domestic and township or residential colony categories. A prosumer cannot take more than one arrangement at the same time.

System size is linked to the sanctioned load. Residential and government consumers can install systems up to the full sanctioned load under net and gross metering. Industrial, commercial and other users have an 80 per cent limit. Group and virtual net metering follow similar proportional caps based on aggregated load.

The regulation sets a clear process for approvals. Applications are handled on a first come first serve basis. The limit is 50 per cent of a distribution transformer’s rated capacity for low tension systems and 50 per cent of a feeder’s capacity for high tension systems. Distribution companies will publish transformer wise and feeder wise available capacity on their websites and update it every quarter.

The application fee is Rs 2500 for low tension consumers and Rs 15000 for high tension consumers. The local Divisional Engineer Operations is the nodal officer. The licensee has 15 working days to issue feasibility once a complete application is received. Systems up to 10 kWp do not need a technical feasibility study.

All interconnection and safety standards must follow Central Electricity Authority norms and the State Grid Code. Systems above 56 kWp need insurance and certification by the Chief Electrical Inspector to the Government. Smaller systems can be self certified by the consumer.

The regulation sets out different energy accounting methods for each arrangement.

Under net metering, excess energy exported to the grid becomes a credit. If export exceeds import in a month, the difference is settled at the lowest solar tariff discovered by the state distribution companies in the previous financial year under Section 63 of the Electricity Act.

Under gross metering, the distribution company purchases all electricity generated at the same lowest discovered solar tariff. The prosumer pays for all electricity consumed at the standard retail tariff.

Group and virtual net metering let consumers share generation across multiple service connections within the same distribution area. Allocation happens after accounting for wheeling losses.

The regulation offers several charge exemptions. Net and gross metering consumers do not pay banking, wheeling, cross subsidy or additional surcharges. In group and virtual net metering, exemptions differ. Wheeling charges and losses apply based on voltage level.

All meters must be smart meters with advanced metering infrastructure, in line with CEA regulations. Energy from these systems counts towards the renewable purchase obligation of the distribution company.

The facility is valid for 25 years from the date of grid connection. The regulation also covers delay compensation, inspection rights, sharing of clean development mechanism benefits, and grievance redressal under existing rules.

Any central or state incentive or subsidy goes to the consumer or the authorised vendor. Claims will be processed by the Telangana Renewable Energy Development Corporation Limited after installation.