GERC Considers Exemption From Net Metering Agreements For Rooftop Solar Under PM Surya Ghar Scheme In Gujarat

The Gujarat Electricity Regulatory Commission (GERC) recently heard a significant petition concerning rooftop solar adoption under the central government’s PM Surya Ghar Muft Bijli Yojana. The petition, filed by the state’s distribution companies, requests an exemption from the requirement of a formal net metering agreement for residential consumers installing rooftop solar PV systems under this subsidy scheme. The petitioners argued that removing this procedural requirement would simplify the process for consumers and encourage faster adoption of rooftop solar across the state. They also suggested that the Commission consider amending the existing GERC regulations on net metering to specifically exempt beneficiaries of this scheme from the interconnection agreement.

During the hearing, the distribution companies emphasized that the procedural hurdle of a formal agreement can slow down implementation and deter residential consumers from installing solar systems, especially under a government-backed subsidy. They maintained that streamlining this process would help achieve the broader policy goal of promoting rooftop solar and increasing renewable energy penetration at the household level.

On the other hand, a major power utility opposed the exemption, urging the Commission to maintain the requirement for a formal interconnection agreement. The utility highlighted that such agreements are essential for legal, technical, and safety reasons. They contain critical provisions on system ownership, metering, billing, safety compliance, and dispute resolution. The utility stressed that these legal documents play a vital role in protecting both consumers and distribution companies, especially if disagreements arise and are presented in a court of law.

The utility also raised a separate issue regarding a government circular that waives certain charges for consumers installing rooftop solar systems up to 6 kW in capacity. They sought clarification on whether this waiver applies to private entities and on the method for recovering any waived charges.

The Commission noted that public notices had been issued inviting comments on the petition. Only one objection was filed, although the person who submitted it did not appear for the hearing. During proceedings, it was also noted that the distribution companies had not received a copy of the utility’s written submission. The Commission directed the utility to provide the submission within a week and allowed the petitioners an equal period to file their rejoinder.

The hearing concluded with both parties having presented their submissions and arguments. The Commission directed the filing of final written submissions before reserving the matter for an order. The panel hearing the case includes senior members of the Commission. The final decision will determine whether residential consumers under the PM Surya Ghar Muft Bijli Yojana can be exempted from executing a formal net metering agreement, which could significantly impact the pace of rooftop solar adoption in the state.

The outcome of this petition is expected to influence how procedural requirements are applied to residential solar installations under government subsidy programs. It highlights the balance regulators must maintain between promoting renewable energy adoption and ensuring legal, technical, and safety safeguards for both utilities and consumers. The Commission’s forthcoming order is likely to provide clarity on these issues and could shape the framework for rooftop solar expansion in Gujarat going forward.

The resolution of this petition is closely watched by stakeholders across the solar sector, as it may set a precedent for simplifying regulatory procedures while ensuring proper safeguards are maintained.