New Net Metering Rules in Rajasthan 2025 | Virtual & Group Solar Explained

Rajasthan, known for its abundant solar potential, continues to lead India’s renewable energy revolution. With the state government pushing to expand rooftop solar and distributed renewable energy, the Rajasthan Electricity Regulatory Commission (RERC) has introduced new net metering rules in 2025. These rules aim to make solar adoption more flexible, inclusive, and financially attractive for households, businesses, and institutions.

Net metering allows consumers who generate their own electricity from solar to offset their energy bills with surplus electricity exported to the grid. The 2025 amendments expand this mechanism through higher capacity limits, virtual net metering (VNM), group net metering (GNM), and regulatory simplifications, creating opportunities for larger-scale adoption and shared solar systems.

This guide breaks down the new rules, eligibility, benefits, challenges, practical examples, and FAQs, helping consumers and businesses understand how to take advantage of Rajasthan’s updated net metering framework.

Table of Contents

What is Net Metering?

Before diving into the new regulations, it’s important to understand key concepts:

Net Metering: A billing mechanism where the electricity a consumer generates from solar is credited against their electricity consumption. If production exceeds usage, surplus electricity is fed into the grid, and the consumer receives a monetary or energy credit.
Virtual Net Metering (VNM): Allows a single solar installation to provide energy credits to multiple electricity connections, even if they are physically separate. This is ideal for societies, institutions, or commercial setups with multiple buildings.
Group Net Metering (GNM): Similar to VNM but structured for multiple consumers sharing one solar system, distributing energy credits among participants based on their share or consumption.
Net Billing / Feed-in Mechanism: Instead of full credit at retail rates, some excess electricity is sold to the grid at a predefined tariff.

These mechanisms enable wider adoption of solar power, reduce electricity bills, and promote sustainable energy use.

Previous Net Metering Rules in Rajasthan

Before 2025, Rajasthan’s net metering framework had certain limitations:

Capacity Limit: Rooftop solar systems were capped at 500 kW, excluding larger installations.
Sanctioned Load Restriction: Solar installation was limited by the consumer’s electricity contract demand or sanctioned load.
Limited Virtual/Group Options: VNM and GNM were partially allowed but restricted in scope, making shared solar systems difficult.
Charges & Surcharges: Some banking, wheeling, and cross-subsidy charges applied, limiting cost savings.
Lengthy Approvals: Feasibility studies and approvals often caused delays, discouraging consumers from larger installations.

These rules encouraged small-scale rooftop solar but did not fully unlock Rajasthan’s solar potential, especially for commercial and institutional consumers.

Key Changes in the 2025 Net Metering Rules

RERC’s 2025 amendments significantly enhance net metering benefits and accessibility:

Feature	Previous Rule	New Rule (2025)
Capacity Limit	500 kW	Up to 1 MW for all consumer categories
Sanctioned Load Constraint	Limited by contract demand	Systems up to 1 MW allowed, subject to technical feasibility
Virtual & Group Net Metering	Limited / partially allowed	Fully enabled for domestic, commercial, industrial, government, and institutional consumers
Feasibility Timeline	Variable, causing delays	Domestic ≤10 kW: no feasibility study; larger systems: 15–30 days for completion. Deemed feasible if no response
Charges / Waivers	Wheeling, banking, cross-subsidy surcharges applied	Many charges waived or exempted, especially for systems with battery storage
Eligibility	Rooftop owners only	All categories including societies, institutions, government, C&I consumers

These changes aim to simplify processes, increase adoption, and enable shared solar infrastructure.

Practical Examples

1. Residential Household

Household wants a 15 kW solar system. Previously, it faced feasibility study delays and capacity limits based on sanctioned load.
Under the new rules, the system can be installed without a feasibility study (≤10 kW) or with quick approval (>10 kW). Surplus energy will be credited at full retail rates, and certain surcharges are waived.

2. Commercial / Industrial Facility

Factory with contract demand 300 kW can now install a 1 MW system, use virtual net metering across multiple units, and benefit from wheeling/banking exemptions. Battery storage further enhances grid flexibility and billing advantages.

3. Housing Societies

Multi-building society installs a common 500 kW solar system. Using group net metering, energy credits are distributed among apartments based on consumption or ownership share.

4. Educational or Government Institutions

Schools or hospitals can install off-site or rooftop systems, benefit from battery-integrated storage incentives, and share power among multiple campuses via virtual net metering.

Benefits of the New Rules

Higher Adoption Rates: Lifting capacity ceilings and enabling VNM/GNM increases participation across sectors.
Cost Savings: Waived surcharges reduce electricity bills, improve ROI for solar installations.
Efficient Land Use: Shared systems maximize rooftop or common area usage.
Faster Implementation: Defined timelines for feasibility and approvals reduce delays.
Encouragement for Battery Storage: Additional incentives for storage enhance energy reliability.
Inclusive Access: Domestic, C&I, institutions, and government sectors can now adopt solar with clarity.

Challenges to Consider

Grid Capacity Constraints: Transformers and distribution networks must handle increased generation.
Metering & Technical Standards: Bi-directional meters, safety compliance, and proper interconnection are essential.
Energy Accounting Complexity: Group and virtual net metering require accurate tracking and billing.
Upfront Costs: Battery-integrated systems are costlier, despite incentives.
Policy Evolution: Future amendments may change eligibility, charges, or capacity limits.

How to Apply

Assess System Size & Type: Decide rooftop, off-site, virtual or group metering.
Submit Application: To the respective discom, including all required documents.
Feasibility Study: Completed within 15–30 days depending on system size; deemed feasible if no response.
Install System: Panels, inverters, and meters installed according to safety standards.
Grid Connection & Commissioning: Ensure compliance with RERC rules.
Energy Accounting & Billing: Receive net metering credits and enjoy charge waivers.
Maintenance: Regular checks to maintain system efficiency and compliance.

Frequently Asked Questions (FAQs)

Q1. Who can avail of the new net metering rules?
Domestic, commercial, industrial, government, educational institutions, and housing societies. Virtual and group net metering are allowed for all.

Q2. What is the maximum system capacity under net metering?
Up to 1 MW for rooftop or distributed renewable systems.

Q3. Are technical feasibility studies mandatory?
Domestic systems ≤10 kW: no feasibility required. Larger systems require feasibility within 15–30 days. Deemed feasible if no response.

Q4. Are there any charges for surplus energy?
Many previous charges (wheeling, banking, cross-subsidy) are waived, especially for battery-integrated systems.

Q5. Can multiple consumers share a solar system?
Yes, through Group or Virtual Net Metering, credits can be shared across multiple connections.

Q6. What if my system exceeds 1 MW?
Projects above 1 MW follow open access or tariff-based frameworks, not net metering.

Future Prospects

Rapid Rooftop Solar Expansion: Higher limits and group net metering will increase rooftop solar installations.
Grid Stability & Storage: Battery-integrated systems provide round-the-clock clean energy.
Economic Growth & Jobs: Increased solar adoption boosts manufacturing, installation, and maintenance employment.
Sustainability: Reduced reliance on conventional electricity, lower carbon emissions, and enhanced energy security.

Conclusion

Rajasthan’s 2025 net metering amendments mark a major milestone in renewable energy adoption. By raising capacity limits, enabling virtual and group net metering, simplifying approvals, and waiving charges, these regulations make solar power more accessible, cost-effective, and sustainable.

The new framework benefits households, businesses, institutions, and societies, providing financial savings, energy independence, and environmental benefits. While challenges like grid capacity, costs, and policy changes remain, Rajasthan is poised to expand distributed solar significantly, supporting India’s broader renewable energy goals and fostering a cleaner, greener future.