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					</table>The Odisha Electricity Regulatory Commission (<a href="https://www.orierc.org/" target="_blank" rel="noopener">OERC</a>) has issued draft regulations to enable efficient integration of distributed renewable energy systems (DRES) through multiple metering options, storage requirements, billing mechanisms, and grid connectivity standards across the state.
Stakeholders must send their comments by August 31, 2026.
Applicability
The draft Odisha Electricity Regulatory Commission (Grid Interactive Distributed Renewable Energy Sources) Regulations, 2026 apply to DRES of up to 10 MW connected at 33 kV or below in distribution company (DISCOM) areas, with or without energy storage.
Eligible consumers may establish systems independently or through the renewable energy service company (RESCO) model and must enter into an agreement with the DISCOM under the applicable metering mechanism.
Systems installed under Central or Odisha government programs must comply with the relevant program guidelines. Installations above 10 kW must use hybrid or grid-forming inverters and two-hour battery energy storage systems. The minimum storage requirement ranges from 10% to 30% of installed capacity, depending on project size.
Consumers may use RESCO arrangements for projects up to 500 kW. Systems must include generation and bidirectional meters. Consumers with pending electricity dues will be ineligible. Open access consumers may also establish DRES.
Metering Mechanisms
Eligible consumers may choose net metering, net billing, gross metering, group net metering, virtual net metering, or behind-the-meter metering, subject to the prescribed eligibility and capacity limits.
Net metering will offset exported renewable electricity against imported electricity. It will be available to domestic consumers, government educational and healthcare institutions, local authority buildings, and agricultural consumers for systems from 1 kW to 500 kW, subject to sanctioned load or contract demand.
Under net billing, imported electricity will be charged at the retail tariff and exported electricity will be credited at a Commission-determined feed-in tariff. All consumer categories will be eligible for systems from 1 kW to 500 kW at their premises, subject to sanctioned load or contract demand.
Under gross metering, the entire generation will be supplied to the DISCOM at the feed-in tariff, while consumption will be billed separately at the retail tariff. All consumer categories may install systems from 1 kW to 10 MW after obtaining separate connectivity.
Group net metering will allow surplus generation from one service connection to be adjusted against other connections of the same consumer. Virtual net metering will allow two or more consumers in the same category and DISCOM area to allocate generation among their connections. Virtual net metering projects may be located away from consumer premises and must range from 5 kW to 500 kW or the participants’ combined sanctioned load or contract demand, whichever is lower.
Behind-the-meter systems will be used only for self-consumption and cannot export electricity to the grid. All consumer categories may install systems from 1 kW up to their sanctioned load or contract demand, subject to a 10 MW ceiling. Consumers must inform the DISCOM before connecting the system.
Energy Accounting
Energy accounting will begin on the commissioning date. DISCOMs will read generation, net, bidirectional, and consumer meters under the OERC Supply Code, 2019. They must upgrade billing systems within three months of notification and continue accepting power during the system’s useful life unless the prosumer stops being a consumer or abandons the project.
Under net metering, surplus exports will be carried forward within the annual settlement period. Time-of-day (ToD) generation will first offset consumption in the corresponding peak or off-peak period. The surplus at the year-end will be purchased at the feed-in tariff and credited to the consumer’s bank account. Fixed charges, demand charges, levies, and other applicable charges will remain payable.
Under net billing, self-consumption will be adjusted first. Imported electricity will be valued at the retail tariff and exports at the feed-in tariff. Export credits will reduce the bill and any remaining credit will be carried forward. The year-end balance will be transferred to the consumer’s bank account.
Under gross metering, the DISCOM will issue a net bill reflecting amounts payable by both parties. Credits will be carried forward and settled at year-end. Electricity supplied during peak hours from storage will receive 125% of the gross metering feed-in tariff or another rate determined by OERC.
For group net metering, the host connection must consume at least 20% of generation. The surplus will be allocated to the consumer’s other connections according to a priority list that may be revised once a year with three months’ notice. For virtual net metering, generation will be allocated according to agreed shares through a lead consumer. Unadjusted year-end credits under both mechanisms will be settled at the feed-in tariff.
Charges and Hosting Capacity
DRES generation under net metering, net billing, gross metering, and behind-the-meter arrangements at eligible premises will be exempt from transmission and wheeling charges, cross-subsidy surcharge, and additional surcharge. Group and virtual net metering will also be exempt when the system and participating connections use the same distribution substation or feeder. Otherwise, open access charges and losses will apply. OERC may introduce parallel operation or grid support charges through separate orders.
Connected DRES capacity cannot exceed the rated capacity of a feeder or distribution transformer. Capacity on a distribution transformer will be capped at 90%, with each phase limited to 30%.
Safety and Metering Infrastructure
DRES projects will connect at the consumer’s supply voltage. The DISCOM will determine the connection point and voltage after assessing technical feasibility and network conditions with the consumer or prosumer. Interconnection must comply with Central Electricity Authority (CEA) safety and distributed generation connectivity regulations.
Consumers will operate and maintain the DRES and storage system up to the bidirectional meter. The DISCOM will be responsible beyond that point. Systems must include automatic and manual isolation protection to prevent injection during outages. DISCOMs may disconnect unsafe systems, inform the prosumer within 24 hours, and restore connectivity after rectification.
Inverters must comply with standards prescribed by the Ministry of New and Renewable Energy, Bureau of Indian Standards, International Electrotechnical Commission, and Institute of Electrical and Electronics Engineers. Machine-to-Machine-enabled devices or data loggers may provide real-time generation data instead of generation meters.
Consumers must bear meter, connectivity, and related infrastructure costs. Meters must support Advanced Metering Infrastructure with RS-485 or higher communication capability. ToD consumers must use generation and bidirectional meters that record block-wise data.
Compliance and Implementation
Renewable energy consumed by obligated entities and designated consumers from their own DRES will count toward renewable purchase obligation (RPO) or renewable consumption obligation (RCO) compliance. Electricity exported and purchased by the DISCOM will count toward its compliance. Generation from consumers that are not obligated entities or designated consumers will also be credited to the DISCOM.
DISCOMs must issue implementation guidelines for each metering mechanism within one month of notification and establish or update an online portal within three months. The portal must include procedures, documents, charges, model agreements, contacts, empanelled service providers, incentives, and installed capacity records.
Renewable energy certificates will be issued under Central Electricity Regulatory Commission regulations. The draft regulations will override conflicting OERC provisions.
This May, OERC <a href="https://www.mercomindia.com/odisha-proposes-ancillary-services-framework-for-grid-security" target="_blank" rel="noopener">issued</a> the draft Ancillary Services Regulations, 2026, which sets out a state-level framework for the procurement, deployment, payment, accounting, and settlement of ancillary services.
Subscribe to Mercom’s real-time <a href="https://mercomindia.com/product/mercoms-renewable-energy-regulatory-updates/" target="_blank" rel="noopener">Regulatory Updates</a> to ensure you don’t miss any critical updates from the renewable industry.

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