APERC Simplifies Behind-The-Meter Rooftop Solar Regulations And Removes Surcharge Burden For Consumers In Andhra Pradesh

The Andhra Pradesh Electricity Regulatory Commission (APERC) has issued practice directions to clarify the regulatory requirements for Behind-the-Meter (BTM) rooftop solar photovoltaic systems used for captive consumption. The decision addresses operational, technical and commercial concerns raised by electricity distribution companies and consumers across Andhra Pradesh.

The order follows representations from stakeholders under the Eastern Power Distribution Company of Andhra Pradesh Limited (APEPDCL), who reported delays and administrative difficulties in obtaining approvals and synchronization permissions for solar systems installed behind existing electricity meters.

APERC has clarified that consumers do not need prior permission, feasibility approval or line clearance from distribution companies to connect captive solar plants to their internal electrical bus bars. Under Section 9(1) of the Electricity Act, 2003, the internal electrical network downstream of the billing meter remains the consumer’s private installation.

Consumers can therefore design their internal electrical systems according to their engineering requirements, including selecting suitable voltage levels and installing multiple inverter connections, provided all applicable safety standards are followed.

However, APERC has made prior intimation to the concerned DISCOM mandatory before interconnecting or islanding a BTM solar system. Consumers must provide technical information such as installed capacity and single-line diagrams to support grid planning and demand forecasting. During synchronization, the system must ensure that no electricity is injected into the main grid.

The Commission warned that unauthorized grid connectivity without prior notification can attract penal action under Sections 142 and 146 of the Electricity Act, 2003.

A major benefit for industrial and commercial consumers is the clarification that Cross Subsidy Surcharge (CSS) and Additional Surcharge (AS) will not apply to BTM rooftop solar systems. The exemption also covers projects developed through third-party investment or external financing models under APERC Regulation 4 of 2023.

DISCOMs may seek reasonable service charges through their regular retail supply tariff proceedings, but consumers cannot be subjected to open-access surcharges for electricity generated within their premises. Consumers will, however, remain responsible for applicable regulated capacity charges determined by the Commission.

APERC’s directions are expected to reduce regulatory uncertainty for businesses adopting captive rooftop solar while maintaining essential grid safety and information-sharing requirements. The move could support wider adoption of distributed renewable energy across Andhra Pradesh.