DERC Proposes Draft Amendment 2025 To Expand Virtual And Group Net Metering For Renewable Energy In Delhi

The Delhi Electricity Regulatory Commission (DERC) has released a draft amendment to update its existing guidelines on renewable energy net metering. The draft, titled the Delhi Electricity Regulatory Commission (Group Net Metering and Virtual Net Metering for Renewable Energy) (Seventh Amendment) Guidelines, 2025, was issued on December 17, 2025. The amendment proposes several key changes to the regulatory framework for renewable energy within the National Capital Territory of Delhi. According to the draft, the guidelines will take effect from the date they are uploaded on the DERC website and will remain in force until any further amendments are introduced.

One of the most notable changes under the draft amendment relates to the applicability of the Virtual Net Metering (VNM) framework. Previously, the VNM framework had certain restrictions, but the new guidelines expand its reach to all consumers in Delhi. This now explicitly includes consumers with a single point of supply. By broadening the applicability, the amendment aims to allow more consumers to benefit from renewable energy systems, thereby encouraging wider adoption of clean energy across the city.

The draft also introduces greater flexibility for consumers participating in VNM arrangements. Under the updated guidelines, consumers now have the option to change their share of electricity credit from a renewable energy system or add new participating service connections to an existing agreement. These adjustments can be made twice within a financial year, provided the consumer gives a two-month advance notice. Additionally, the amendment modifies technical terminology used in the guidelines, replacing the phrase “occurred during the off-peak time block” with “occurred during the normal time block” in relation to credit accounting. This change aims to simplify the accounting process and make the guidelines more practical for consumers and utilities alike.

Another significant focus of the amendment is the financial responsibility of Distribution Licensees (DISCOMs) regarding infrastructure costs. The draft specifies that DISCOMs are required to facilitate and bear the capital expenditure for Service Line cum Development (SLD) and network augmentation for renewable energy projects, including new connections. These costs will be treated as a “pass-through” in the Aggregate Revenue Requirement (ARR) for schemes under both Virtual Net Metering (VNM) and Group Net Metering (GNM) modes. By mandating that DISCOMs bear these costs, the amendment aims to reduce the financial burden on consumers and support the faster deployment of renewable energy systems.

However, the waiver of SLD and network augmentation costs comes with specific limitations. It applies only to networks at 11kV and below and remains effective until the cumulative capacity reaches predefined thresholds for different licensees. These thresholds are 110 MW for BRPL, 100 MW for TPDDL, 30 MW for BYPL, and 10 MW for NDMC. To ensure proper monitoring and transparency, Distribution Licensees are required to submit quarterly progress reports regarding Net Metering, GNM, and VNM to both the Commission and the Energy Efficiency & Renewable Energy Management (EE&RM) cell of the Department of Power, Government of NCT of Delhi.

Overall, the draft amendment aims to expand access to renewable energy through both Group and Virtual Net Metering frameworks while providing greater flexibility and reducing financial barriers for consumers. By clarifying technical provisions and mandating infrastructure support from DISCOMs, DERC seeks to accelerate the adoption of renewable energy in Delhi. The regulatory changes also ensure oversight through quarterly reporting, helping to maintain transparency and accountability in the implementation of these schemes. The amendment represents a significant step toward supporting clean energy growth in the National Capital Territory, making renewable energy more accessible and consumer-friendly.