KERC Unveils Draft DSPV Regulations 2026 To Expand Distributed Solar And Strengthen Grid Stability In Karnataka

The Karnataka Electricity Regulatory Commission (KERC) has released the draft Grid Interactive Distributed Solar Photovoltaic (DSPV) Plants Regulations, 2026, proposing a new framework for solar power systems connected to the state electricity grid. The draft regulations will replace the existing Solar Rooftop Photovoltaic Regulations, 2016, and aim to support the growing role of distributed solar energy in Karnataka.

One of the major changes in the proposed regulations is the shift from the term “rooftop solar” to “distributed solar photovoltaic plants.” This change recognizes the wider range of solar installations being adopted today. Apart from rooftop systems, the new definition includes solar panels installed on building facades, elevated ground-mounted structures, and both mono-facial and bi-facial solar modules.

Karnataka has emerged as one of India’s leading renewable energy states. According to the draft regulations, renewable energy contributes 21,961.67 MW, accounting for about 57% of the state’s total installed power capacity. Distributed solar installations currently contribute around 899.53 MW. While this growth supports clean energy goals, it also creates challenges such as voltage fluctuations, grid congestion, and power intermittency. The proposed regulations seek to address these issues while encouraging further solar adoption.

The draft introduces six metering arrangements for different categories of consumers. Net metering will be available only for domestic consumers, residential apartment buildings, government institutions, and charitable organizations. Eligible systems can range from 1 kW to 500 kW, subject to the sanctioned load limit.

Net billing and gross metering will be open to all consumer categories. Under gross metering, consumers can export all the electricity generated by their solar systems to the distribution licensee. The regulations also introduce Group Net Metering (GNM) and Virtual Net Metering (VNM). Group Net Metering allows a prosumer to adjust excess solar generation against multiple electricity connections registered under the same name and category. Virtual Net Metering enables groups of domestic consumers to jointly develop a solar plant and share the generated energy. Both models require a minimum system size of 5 kW.

Another option, Behind the Meter (BTM), is meant exclusively for self-consumption and does not allow any electricity injection into the grid.

To strengthen grid reliability, the draft mandates that consumers installing DSPV systems above 10 kW must use hybrid inverters or battery energy storage systems capable of storing at least 20% of the plant’s generation capacity. In addition, systems below 150 kW cannot exceed 80% of the capacity of the local distribution transformer.

The proposed regulations also simplify the approval process through an online application system. For low-tension domestic projects up to 150 kW, no Power Purchase Agreement (PPA) will be required. Distribution licensees must inspect and commission completed projects within five days of receiving the work completion report. Failure to meet this timeline will attract a penalty of ₹1,000 per day payable to the applicant.

KERC has invited comments, objections, and suggestions from stakeholders and the public. Interested parties can submit their responses to the Commission within 15 days from the date of publication of the draft regulations in the official gazette.