The Telangana Electricity Regulatory Commission (TGERC) has issued regulations for grid-interactive rooftop solar, introducing a comprehensive framework governing metering for consumers in the state.

The framework titled Telangana Electricity Regulatory Commission (Rooftop Solar Photovoltaic (PV) Grid-Interactive Systems) Regulations, 2025 will apply to distribution licensees, eligible consumers, and third-party owners of rooftop solar PV systems.

Scope and Coverage

The regulations cover all rooftop solar systems operating under net metering, group net metering, gross metering, and virtual net metering. The interconnection must comply with standards specified by the Central Electricity Authority (CEA) under its 2013 connectivity regulations, 2023 safety regulations, and the Telangana State Electricity Grid Code Regulations, 2018.

Capacity Limits and Eligibility

Consumers across categories are permitted to install rooftop solar systems under net metering up to 500 kW. Existing consumers who already have systems above 500 kW will be allowed to continue availing net metering benefits.

Group net metering is permitted for systems below 100 kW, while gross metering is allowed up to 1 MW. Virtual net metering is permitted for less than 100 kW. A consumer cannot simultaneously avail both net and gross metering or mix net, group, and virtual net metering.

The minimum project size is fixed at 1 kW for net and gross metering, and 10 kW for group and virtual net metering. For residential and government consumers, the maximum rooftop solar capacity under net and gross metering can be 100% of the sanctioned load.

For industrial, commercial, and other consumers, the cap is 80% of the sanctioned load or contracted demand. In group net metering, the capacity limit is the sum of contracted or sanctioned loads of parent and participating connections for residential and government consumers, and 80% of the same sum for commercial and industrial consumers.

In the event of a reduction in contracted demand leading to a mismatch with sanctioned rooftop capacity, the excess injected power is treated as inadvertent power. Consumers with pending arrears to the distribution licensee are not entitled to avail any metering arrangement under the regulation.

Restrictions

The regulations bar consumers availing net or gross metering from simultaneously accessing open access under the TGERC Open Access Regulations, 2024.

Consumers under group and virtual net metering are also barred from open access, though wheeling of energy between parent and participating connections is allowed, subject to wheeling charges and losses.

Third-party sale of rooftop power outside such arrangements is prohibited.

Exemptions and Charges

Prosumer systems under net and gross metering are exempt from banking charges, wheeling charges, cross-subsidy surcharge, and additional surcharge. Under group net metering, prosumers and participating connections are exempt from banking, cross-subsidy surcharge, and additional surcharge, but wheeling charges and losses will apply to participating connections.

Virtual net metering is exempt from banking charges, but cross-subsidy surcharge, additional surcharge, and wheeling charges will apply to participating consumers, along with wheeling losses.

These losses will be calculated on the lower voltage level between the parent and participating consumers.

Duration and Safety Requirements

The net, gross, group, or virtual net metering facility will be applicable for 25 years from the grid connection date. Projects above 75 kW must be insured and certified for safety by the Chief Electrical Inspector within 15 working days of application.

The consumer can self-certify systems up to 75 kW. Consumers installing systems above 75 kW can connect to 11 kV or 33 kV feeders of their respective distribution licensee.

Distribution

The regulations impose distribution transformer and feeder level capacity restrictions. The cumulative capacity of all rooftop solar systems connected to a distribution transformer cannot exceed 50% of its rated capacity.

For high-tension (HT) consumers on 11 kV or 33 kV feeders, the cumulative rooftop solar capacity cannot exceed 50% of the feeder’s maximum load or the substation transformer capacity to which it is connected.

Distribution licensees must publish available transformer-wise and feeder-wise capacity on their websites within three months of notification and update the data quarterly.

Application Procedure

Net or gross metering applications must be filed in prescribed formats with a processing fee of ₹2,500 (~$29.07) for low tension consumers and ₹15,000 (~$174.42) for HT consumers. Parent consumers applying for group or virtual net metering must submit additional undertakings from participating connections.

The distribution licensee must acknowledge receipt within seven working days and complete the feasibility analysis within 15 working days. The feasibility report will remain valid for four months. Projects up to 10 kW are exempt from feasibility analysis and deemed approved.

Connectivity strengthening up to 5 kW will be borne by the distribution licensee. Consumers must install the system within 180 days of the feasibility report, after which the licensee will inspect and approve commissioning within 15 working days.

Connection agreements must be signed within 15 working days of work completion. Meters must be installed and systems commissioned within 15 working days thereafter.

Grid Interconnection

All systems must comply with CEA connectivity and metering standards and state grid code. Systems must be equipped with automatic synchronization, islanding protection, isolator switches accessible to distribution personnel, and meet International Electrochemical Commission power quality standards, including power factor requirements.

The distribution licensee can disconnect rooftop systems in emergencies or when operation adversely affects the grid. Overall safety responsibility rests with the consumer.

Energy Accounting and Settlement

For net metering, billing will show exported, imported, and net consumption. Surplus energy will be settled at the lower of the tariff discovered in the solar competitive bidding or the lowest tariff in the existing power purchase agreements (PPAs) of the distribution licensee. Imported energy will be billed at retail tariffs, and minimum charges will apply.

In group net metering, exports will be adjusted against parent and participating consumption per their agreement, with the surplus amount settled on the same basis. Allocation ratios can be revised once every financial year.

Under gross metering, all energy will be purchased by the licensee at the same lowest tariff benchmark. Consumers must pay a retail tariff for all imports. In virtual net metering, exports will be allocated among participating consumers with the surplus settled at the same tariff benchmark. Allocation can be changed annually.

Renewable Purchase Obligations

The regulation allows electricity consumed under net, gross, group, and virtual metering to be counted toward the renewable purchase obligations of the distribution licensee or obligated entities.

Metering Arrangements

All rooftop solar metering must use smart meters with advanced metering infrastructure and time-of-day capability. Net and group net metering require bi-directional smart meters, while gross and virtual net metering require solar generation meters. Distribution licensees are responsible for meter installation, testing, and maintenance.

Compensation, Incentives, and Inspection

Consumers are eligible for compensation if the distribution licensee fails to meet timelines, as per the TSERC Standards of Performance Regulations, 2016. Subsidies and incentives provided by the Ministry of New and Renewable Energy or the state government must be released within 30 working days by the nodal agency.

The distribution licensee may inspect rooftop systems, and non-compliant vendors can be blacklisted and their systems disconnected. Any panels or equipment additions require prior approval.

CDM Benefits Sharing

The regulation prescribes rules for the clean development mechanism (CDM) benefits. In the first year, 100% of CDM benefits accrue to the prosumer. From the second year, the distribution licensee’s share will increase by 10% annually until it reaches 50%.

Other Provisions

For defective meters, billing will be based on the average of the past three cycles, and they must be replaced within 15 days. Consumers must execute a rooftop solar connection agreement before commissioning.

The Commission can issue directions, remove difficulties, and amend the regulations, which will be reviewed every three years but continue in force until modified.

In April this year, TGERC approved the procurement of 4,000 MW of solar power and the associated PPAs from projects under Component-A of the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan.

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