RERC Approves Third Amendment To Distributed Renewable Energy Regulations 2025 To Boost Virtual And Group Net Metering In Rajasthan

The Rajasthan Electricity Regulatory Commission (RERC) has approved the third amendment to its Grid-Interactive Distributed Renewable Energy Generating Systems Regulations, 2025. The order, issued on October 13, 2025, follows two rounds of public consultation and hearings held in July and September. The amendment aims to streamline and expand the adoption of distributed renewable energy, particularly through mechanisms such as Virtual Net Metering (VNM), Group Net Metering (GNM), and provisions for Peer-to-Peer (P2P) energy trading and plug-and-play solar systems.

Under the revised regulations, new definitions have been added to clarify the concepts of Virtual and Group Net Metering. The Commission decided not to replace the term “consumer” with “prosumer” as proposed by some stakeholders, reasoning that all categories of electricity consumers are eligible to participate. It also clarified that renewable systems under VNM and GNM can be installed on rooftops, balconies, land, water bodies, or elevated structures.

The scope of the regulations now includes several arrangements: Net Metering, Net Billing, VNM, GNM, P2P trading, and grid-interactive systems connected behind the meter. Consumers with existing Net Metering connections can switch to Group or Virtual Net Metering only after terminating their previous agreements.

To simplify implementation, RERC has set clear timelines for technical feasibility studies. For domestic consumers with systems up to 10 kW capacity, no feasibility study will be required. For other categories, studies must be completed within 15 days for existing connections and 30 days for new ones. If no response is received within the stipulated period, the proposal will be deemed technically feasible.

The amendment also details procedures for interconnection standards, safety norms, and energy accounting. Both VNM and GNM consumers can install renewable systems up to 100 percent of their cumulative sanctioned load, capped at 10 kW per domestic consumer and 1 MW for total plant capacity. Government connections face no such individual cap.

Energy generated under VNM and GNM will be exempt from banking charges, wheeling charges, cross-subsidy surcharge, and additional surcharge. However, government projects under the RESCO model will pay 50 percent of cross-subsidy and additional surcharges, along with wheeling charges applicable at the relevant voltage level. The Commission also approved waivers of up to 100 percent wheeling charges for systems integrated with Battery Energy Storage Systems (BESS), depending on storage capacity.

Stakeholders raised multiple suggestions—such as expanding VNM eligibility to include commercial and industrial consumers, increasing the 1 MW plant limit, and clarifying energy settlement procedures—but the Commission maintained the current structure, citing grid stability and operational consistency with existing norms. It reaffirmed that ToD tariff provisions under VNM and GNM will apply only once Time-of-Day tariffs are introduced for eligible consumers.

RERC emphasized the importance of transparency, consumer facilitation, and streamlined processes to promote faster renewable adoption in Rajasthan. The new regulatory framework is expected to strengthen distributed solar growth, encourage rooftop and community-based solar models, and provide a foundation for innovative energy trading and storage integration in the state’s power ecosystem.