DERC Proposes Changes to Group and Virtual Net Metering Rules

Objections and suggestions can be sent by December 24, 2025

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The Delhi Electricity Regulatory Commission (DERC) has proposed amendments to the DERC (Group Net Metering and Virtual Net Metering for Renewable Energy) Guidelines, 2019, expanding the applicability of virtual net metering (VNM) to all consumers.

Stakeholders can submit their objections/suggestions by December 24, 2025.

The draft guidelines extend the applicability of VNM to all consumers in the National Capital Territory of Delhi, including single-point-of-supply consumers. Earlier, virtual net metering was limited to residential consumers, group housing societies, government/local authority offices, and renewable energy generators registered under the Mukhya Mantri Kisaan Aay Badhotari Yojna.

The Commission has proposed allowing consumers under VNM to modify the share of electricity generation credits based on new service connections in the existing VNM agreement. The draft amendment proposes granting modifications in the VNM agreement twice in the financial year.

The draft also provides for accounting of surplus energy generated under the VNM framework in any time block as surplus energy credits during normal time blocks, instead of being limited only to ‘off-peak time blocks.’

According to the draft amendment, distribution companies will be responsible for developing and financing service line development and network augmentation for renewable energy projects, including new electricity connections that comprise virtual net metering and group net metering.

The waiver on service line development and network augmentation will apply to the transmission network with 11kV and below.

The waiver on service line development and network augmentation will apply if the cumulative installed capacity under VNM and group net metering (GNM) does not exceed 110 MW, 100 MW, 30 MW, and 10 MW for BSES Rajdhani Power, Tata Power Delhi Distribution, BSES Yamuna Power, and New Delhi Municipal Council, respectively.

The distribution licensee must submit quarterly progress reports on net metering, group net metering, and virtual net metering to the DERC, the Energy Efficiency & Renewable Management, Department of Power, and the Government of the National Capital Territory of Delhi.

While Delhi was an early mover on VNM and GNM, the Rajasthan Electricity Regulatory Commission recently notified the third amendment to its Grid-Interactive Distributed Renewable Energy Generating Systems Regulations, opening virtual and group net metering across consumer categories, codifying charge waivers, and adding battery storage incentives.

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