NewsPolicy & RegulationsPSPCL Seeks PSERC Approval To Replace Physical Net-Metering Agreements With Digital Contracts...

PSPCL Seeks PSERC Approval To Replace Physical Net-Metering Agreements With Digital Contracts In Punjab

The Punjab State Power Corporation Limited (PSPCL) has approached the Punjab State Electricity Regulatory Commission (PSERC) with a proposal to simplify the process of installing rooftop solar systems across the state. The utility has filed a petition seeking amendments to the existing solar regulations so that consumers applying for rooftop solar connections through online portals will no longer be required to sign physical net-metering agreements.

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The petition has been submitted under Regulation 25 of the PSERC (Grid Interactive Rooftop Solar Photo Voltaic Systems) Regulations, 2021. PSPCL has proposed an amendment to Regulation 11.13 that would allow system-generated digital agreements to replace traditional paper-based contracts. The utility has also deposited the mandatory filing fee of ₹20,000 along with the petition.

The proposed change is aimed at supporting the Central Government’s PM Surya Ghar: Muft Bijli Yojana, which was launched on February 13, 2024, to promote rooftop solar adoption in the residential sector. Under the scheme, Punjab has set a target of installing 2,50,000 rooftop solar systems by the financial year 2026-27.

Despite the ambitious target, the pace of installations has remained slow. As of June 22, 2026, around 26,538 consumers had applied under the scheme, but only 14,136 rooftop solar plants had been commissioned. According to the Ministry of New and Renewable Energy (MNRE), application fees, meter testing charges, and extensive physical documentation have been among the key reasons for delays in project execution.

Earlier, the PSERC had addressed some of these concerns by waiving application and meter-testing fees for domestic rooftop solar systems of up to 10 kW through Petition No. 65 of 2025. However, the regulator had not approved the removal of the physical connection agreement because no alternative legal mechanism had been proposed at that time.

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The latest proposal follows new directions issued by the Ministry of Power and the MNRE in June 2026. The central government instructed all distribution utilities to recognize digital agreements executed through the national PM Surya Ghar portal as legally valid net-metering contracts. Similar digital procedures were also recommended for rooftop solar projects outside the scheme.

In response, PSPCL issued Commercial Circular No. 26/2026 on June 19, 2026, and included sample digital agreements in its petition to address the regulator’s earlier concerns. Under the proposed amendment, PSPCL will install and seal the net meter and commission the rooftop solar system within 15 days of receiving the installation certificate. The online agreement signed by the prosumer will serve as the official contract for a period of up to 25 years, eliminating the need for any separate physical agreement.

If the PSERC approves the amendment, the new digital-first process is expected to reduce paperwork, speed up rooftop solar commissioning, improve consumer convenience, and support Punjab in achieving its renewable energy and clean power targets.


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