GERC Notifies 2026 Distributed Renewable Energy Regulations, Introduces Five Metering Options and BESS Requirements In Gujarat

The Gujarat Electricity Regulatory Commission (GERC) has officially notified the Gujarat Electricity Regulatory Commission (Grid Interactive Distributed Renewable Energy Sources) Regulations, 2026, introducing a comprehensive framework for grid-connected distributed renewable energy systems across the state. Issued under Notification No. 11 of 2026, the new regulations replace the Net Metering Rooftop Solar PV Grid Interactive Systems Regulations, 2016, and establish updated provisions for residential, commercial and industrial consumers adopting distributed renewable energy sources (DRES).

The regulations introduce five metering mechanisms: Net Metering, Net Billing, Gross Metering, Group Net Metering and Virtual Net Metering. Under Net Metering and Net Billing, consumers can install systems with capacities ranging from 1 kW AC to 1,000 kW AC or 1,250 kWp DC. Gross Metering systems can have capacities between 6 kW AC and 4,000 kW AC. Group Net Metering allows consumers to share generated electricity across multiple connections belonging to the same entity and consumer category, with a maximum capacity of 1,000 kW AC.

Virtual Net Metering provides another option for collective renewable energy adoption, enabling energy sharing across different locations within the jurisdiction of the same distribution licensee. Systems under this arrangement can range from 10 kW AC to 4,000 kW AC, allowing multiple consumers to benefit from renewable electricity generated at a common location.

To address grid stability and manage additional renewable energy generation, GERC has introduced mandatory Battery Energy Storage System (BESS) integration requirements for certain consumers. Prosumers with contract demand exceeding 100 kW who intend to install DRES capacity beyond their sanctioned demand must incorporate battery storage. The storage system must support at least two hours of charging and discharging per day for a minimum of 50% of the excess DRES capacity.

The regulations also establish different energy settlement mechanisms for residential and non-residential consumers. Residential prosumers under Net Metering will receive 100% adjustment of exported electricity against their grid consumption without banking charges. Any annual surplus energy remaining after adjustment will be purchased by distribution companies at ₹2.25 per kWh.

For non-residential consumers, energy adjustment is limited to 30% of total imported electricity during each billing cycle and is subject to applicable banking charges. Any excess electricity injected beyond the permitted adjustment will be treated as lapsed energy.

GERC has also prescribed technical and safety requirements for grid-connected systems. All installations must comply with Central Electricity Authority (CEA) standards and the Gujarat Electricity Grid Code. Mandatory anti-islanding protection and automatic isolation devices will ensure safe grid operation. Advanced Metering Infrastructure (AMI) meters with RS-485 ports or advanced communication capabilities will also be required for monitoring electricity flows.

Monitoring requirements will depend on project capacity. Systems exceeding 1 MW must install Remote Terminal Units (RTUs), while installations below 1 MW will require SIM-based remote monitoring systems.

For implementation, distribution licensees must establish dedicated online portals to manage consumer registrations, applications, processing and approvals within specified timelines. Connectivity charges will range from ₹1,500 for smaller 1–6 kW systems to ₹50,000 for larger installations of up to 4 MW.

Additionally, consumers will retain 100% of the carbon credit benefits generated through their systems, while electricity produced under the framework will contribute towards DISCOMs’ Renewable Purchase Obligations (RPO).

With the introduction of these regulations, Gujarat has established updated provisions for distributed renewable energy generation, electricity sharing, battery storage integration and grid connectivity across different consumer categories.