DERC Seventh Amendment Expands Virtual Net Metering 2025 And Cuts Solar Adoption Costs In Delhi

The Delhi Electricity Regulatory Commission (DERC) has released the Seventh Amendment to its Guidelines for Group Net Metering (GNM) and Virtual Net Metering (VNM), which came into effect on January 20, 2026. The amendment brings several important changes aimed at making renewable energy, especially rooftop solar, more accessible and affordable for consumers across the National Capital Territory (NCT) of Delhi.

One of the key changes introduced through this amendment is the expansion of the Virtual Net Metering framework. VNM is now applicable to all electricity consumers in Delhi, including those who fall under a single point of supply. This is particularly significant for residents of cooperative group housing societies, apartment complexes, and commercial buildings that share a common electricity connection. With this clarification, more consumers can participate in solar energy projects even if they do not have individual meters or suitable rooftop space.

To reduce the upfront cost burden on consumers, DERC has also directed distribution companies, or DISCOMs, to facilitate and bear the capital expenditure related to Service Line cum Development (SLD) works and network augmentation. This applies to renewable energy projects under both GNM and VNM, including cases involving new electricity connections. Instead of charging consumers directly, these costs will be treated as a pass-through under the Aggregate Revenue Requirement (ARR), allowing DISCOMs to recover the expenses through regulated mechanisms.

However, the waiver of these costs is not unlimited. It applies only to electricity networks operating at 11 kV and below. In addition, capacity limits have been defined for each distribution licensee. The cumulative capacity eligible for this benefit has been capped at 110 MW for BSES Rajdhani Power Limited (BRPL), 100 MW for Tata Power Delhi Distribution Limited (TPDDL), 30 MW for BSES Yamuna Power Limited (BYPL), and 10 MW for NDMC.

The amendment also offers greater operational flexibility to consumers participating in VNM projects. Consumers are now allowed to change their share of electricity credits or add new service connections to an existing VNM arrangement up to two times in a financial year. This can be done by providing an advance notice of at least two months, making it easier for consumers to adjust their arrangements based on changing needs.

In addition, DERC has made minor changes to energy accounting by replacing references to “off peak time block” with “normal time block” in certain credit calculations. This move is expected to simplify the billing and settlement process.

To improve transparency and monitoring, DISCOMs have been instructed to submit quarterly reports on the progress and status of Net Metering, GNM, and VNM installations. These reports will be submitted to both the Commission and the Department of Power, Government of NCT of Delhi. Overall, the amendment is expected to support wider adoption of solar energy and strengthen Delhi’s clean energy transition.