The Telangana Electricity Regulatory Commission has introduced a new set of rules to govern rooftop solar power systems across the state. Issued as Regulation No. 1 of 2025 on November 15, 2025, this update replaces the earlier 2016 regulations and their 2021 amendment. The move follows requests from various stakeholders and licensed distribution companies, who highlighted the need to align the regulations with the current Electricity Act of 2003. The main objective of the new framework is to promote grid-interactive rooftop solar systems that allow consumers to generate electricity for their own use while feeding any surplus power back into the state’s electricity grid.
The regulation focuses on rooftop solar systems with capacities ranging from 1 kilowatt (kW) to 1 megawatt (MW). These systems can be installed on residential, commercial, industrial, or institutional premises, provided they fall within the jurisdiction of a licensed electricity distribution company. The rules apply to both existing and new consumers across different supply categories. The regulation covers multiple metering mechanisms, including Net Metering, Gross Metering, and the newly introduced Virtual Net Metering (VNM), each designed to provide flexibility in how solar power is used or credited.
Net Metering allows consumers to offset their electricity consumption with the power generated by their solar system. Consumers are billed only for the net energy they draw from the grid after accounting for solar generation. Gross Metering, in contrast, enables consumers to sell all the electricity they generate to the distribution company at a fixed rate while continuing to purchase electricity for their own use at the regular retail tariff. This approach provides an alternative for those who prefer to generate electricity primarily as a source of income or investment.
A key feature of the 2025 regulation is the introduction of Virtual Net Metering, which expands access to solar energy for consumers who do not have suitable rooftops. This includes apartment residents and owners of remote properties. Under VNM, electricity generated at a single location can be credited to multiple beneficiaries within the same distribution company’s jurisdiction. This provision is expected to significantly increase the reach of rooftop solar systems and enable more consumers to participate in clean energy generation without physical constraints.
The regulation also sets technical standards to ensure solar systems are safe, reliable, and compatible with the electricity grid. It specifies the types of meters to be installed, quality benchmarks for solar equipment, and necessary safety procedures. The rules outline the application, inspection, and commissioning processes, including timelines for distribution companies to complete each step. These measures are aimed at streamlining the installation and operation of rooftop solar systems, reducing delays, and ensuring consistency in quality and safety. Overall, the new Telangana Electricity Regulatory Commission regulation is designed to simplify and standardize rooftop solar adoption, making it easier for consumers to generate their own electricity and contribute surplus power to the grid. By encouraging grid-connected solar systems, the regulation supports clean energy growth, energy self-reliance, and the state’s broader sustainability goals. This framework is expected to benefit thousands of consumers across Telangana, promoting renewable energy use in households, commercial establishments, and institutional settings.
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