GERC Draft 2026 Regulations Introduce New Framework For Distributed Renewable Energy In Gujarat

The Gujarat Electricity Regulatory Commission (GERC) has released the Draft GERC (Grid-Interactive Distributed Renewable Energy Sources) Regulations, 2026, introducing a new regulatory framework to accelerate the adoption of distributed renewable energy systems across Gujarat. The proposed regulations are designed to support the installation of renewable energy projects connected to the grid up to the voltage level of 33 KV. Once officially notified in the Official Gazette, the new regulations will replace the earlier net metering regulations issued in 2016.

The draft regulations focus on promoting clean energy generation by prosumers, who are electricity consumers capable of generating renewable energy and supplying excess power back to the grid. To support different categories of consumers and project structures, GERC has introduced five different metering and billing mechanisms under the framework.

The first option is Net Metering, where the electricity exported to the grid is adjusted against the electricity imported from the distribution network. Another mechanism is Net Billing, under which imported and exported electricity are billed separately at different tariffs. The regulations also include Group Net Metering and Virtual Net Metering (VNM), allowing surplus renewable energy generated from one system to be adjusted against multiple electricity connections belonging to the same consumer category. In addition, Gross Metering enables prosumers to sell the entire electricity generated from their renewable energy systems directly to the grid at a generic tariff determined by the commission.

GERC has also clearly defined the capacity limits for different systems. Under Net Metering and Net Billing, renewable energy systems can be installed from a minimum capacity of 1 kW up to a maximum of 1,000 kW. For Group Net Metering, the minimum capacity has been fixed at 6 kW, while Virtual Net Metering projects must have at least 100 kW capacity. Both these mechanisms, along with Gross Metering systems, can be installed up to a maximum capacity of 4,000 kW.

To ensure grid stability and manage excess power generation, the draft regulations make Battery Energy Storage Systems (BESS) mandatory for certain consumers. Any prosumer having a contract demand above 100 kW and installing renewable energy capacity exceeding the sanctioned load will need to install a BESS. The storage system must support at least two hours of charging and discharging daily for a minimum of 50 percent of the additional installed capacity beyond the sanctioned demand.

The draft regulations also aim to simplify the approval process for small rooftop solar projects. Systems up to 10 kW will receive deemed acceptance without requiring technical feasibility studies. Additionally, projects up to 6 kW will not be required to pay system strengthening charges, as these costs will be covered by the distribution licensee through annual revenue requirements. For projects above 6 kW, standard charges for upgrading transformers and local distribution infrastructure will apply.

GERC has also directed distribution companies to establish online application portals within three months of the regulations coming into force. The draft further states that DISCOMs failing to process interconnection agreements on time without valid reasons will face penalties of Rs 500 per day for delays. The new framework is expected to support faster growth of decentralized solar and renewable energy projects across Gujarat while improving transparency and consumer participation in clean energy generation.