Telangana Issues New Draft Regulation For Rooftop Solar Systems In 2025

The Telangana Electricity Regulatory Commission has released a new draft regulation on rooftop solar power in the state, repealing its earlier 2016 framework and subsequent amendments made in 2021. The fresh draft, titled “Rooftop Solar PV Grid Interactive Systems Regulation, 2025,” was issued on August 14, 2025, and will apply across the state once notified in the Telangana Gazette. The regulation is framed under the Electricity Act, 2003, and seeks to streamline the process for connectivity, metering, and the sale of power generated from rooftop solar photovoltaic systems.

The regulation introduces four different models under which consumers can set up rooftop solar plants — net metering, group net metering, gross metering, and virtual net metering. Net metering will be permitted for systems up to 500 kW, group and virtual net metering for systems below 100 kW, and gross metering up to 1 MW. For residential and government users, the maximum sanctioned solar capacity can be up to 100% of the sanctioned load, while for commercial and industrial consumers, the limit is 80% of the contracted demand.

The Commission has clarified that these benefits will be available only to consumers without arrears and that one consumer cannot simultaneously avail multiple models like net metering and gross metering. The minimum system size has been fixed at 1 kW for net and gross metering and 10 kW for group and virtual net metering. The regulation also provides that existing net metering consumers above 500 kW will continue to get benefits.

For energy accounting, the framework specifies that exported power will be adjusted against consumption. If generation exceeds consumption, the excess will be settled at the lowest tariff discovered in competitive solar bidding or under power purchase agreements of the state discoms in the preceding year. Similarly, under gross metering, all power generated will be purchased by the discoms at this rate. Settlement will be carried out monthly, and the arrangement will remain valid for 25 years.

To ensure fairness and technical safety, the cumulative rooftop solar capacity connected to a distribution transformer or feeder cannot exceed 50% of its capacity. Consumers installing systems above 75 kW must obtain safety certification from the Chief Electrical Inspector, while smaller systems can be self-certified. The regulation also lays out strict safety norms, technical standards for interconnection, and protection requirements, including anti-islanding mechanisms, harmonic control, and synchronization devices.

The process for application has been clearly detailed, with prosumers required to apply in specified formats along with fees of ₹2,500 for LT consumers and ₹15,000 for HT consumers. The discom must respond within 15 working days, and small systems up to 10 kW will be deemed approved without feasibility studies. Consumers will also be required to sign standard connection agreements, and timelines have been set for installation, testing, and commissioning.

The draft regulation makes provisions for subsidies and incentives under MNRE or state schemes, which will be disbursed through the nodal agency, Telangana Renewable Energy Development Corporation Limited. It also allows consumers to retain Clean Development Mechanism benefits initially, with gradual sharing with discoms over time.

With this amendment, Telangana aims to strengthen consumer participation in rooftop solar adoption, promote renewable energy integration into the grid, and provide clarity on technical, commercial, and safety aspects. The regulation emphasizes fair settlement, consumer protection, and grid stability, while encouraging wider adoption of distributed renewable energy in the state.