India has set an ambitious target to achieve 40 GW of cumulative installed capacity from GRPV systems by 2022. In order to achieve this ambitious target, a strategic combination of Top-Down impetus and Bottom-Up execution approach were initiated in partnership with the state governments. Model Net Metering Regulation for Rooftop Solar served as a precedent and a guiding regulatory document for the states to adopt.

1. Model Net Metering
Regulation Framework
for Grid-connected
Rooftop Solar PV in
India: Challenges And
Ways to Overcome
Those
WWW.SUPRABHA.ORG

2. Introduction
India has set an ambitious target to
achieve 40 GW of cumulative installed
capacity from GRPV systems by 2022. In
order to achieve this ambitious target, a
strategic combination of Top-Down
impetus and Bottom-Up execution
approach were initiated in partnership
with the state governments. Model Net
Metering Regulation for Rooftop Solar
served as a precedent and a guiding
regulatory document for the states to
adopt.
WWW.SUPRABHA.ORG

3. Implementation
Challenges
Following the adoption of Model Net Metering Regulation 2013
by the states and despite the availability of several government
schemes, GRPV projects have not seen significant growth as
compared to the ground-mounted solar projects. Following key
implementation challenges faced by the stakeholders have
impeded the growth of GRPV in the country.
• Limitations in existing Regulations in terms of system size,
distribution transformer (DT) loading and benefit sharing.
• Limited consumer awareness.
• Operational challenges at DISCOM level.
• Absence of a strong ecosystem for low cost debt financing.
• Limited knowledge of adequate safeguard requirements.
• Limited options of business models
WWW.SUPRABHA.ORG

4. Proposed Changes in
Regulatory Framework
Based on review of present regulatory framework and
experience from other countries – discussed in earlier chapters –
there is scope for revision in the present Model Net Metering
Regulation 2013 to incorporate regulatory requirements for the
changing landscape in the country.
• Definition of Premises: Only residential consumers be
allowed to interconnect ground-mounted solar systems
under net-metering/net-billing, which should be limited to
their maximum contracted demand.
• Scope of Demand Aggregation: DISCOMs to do demand
aggregation, which should be restricted to residential
consumers only.
• Compensation for Net Billing: Each state may decide to
choose appropriate option such as commission-determined
reference price or price discovered from SECI/DISCOM RTS
bids.
WWW.SUPRABHA.ORG

5. Purpose of Proposed
Changes
The proposed changes will provide a robust model
regulatory framework for the states to adopt and to
further support the proliferation of solar and other
forms of renewable sources, eligible in India.
The purpose of the proposed changes in the Model
Regulation is to:
• Address the gaps identified through the critical
analysis of the present regulatory framework
• Enable regulatory framework for suggested business
models
• Introduce governance structure, institutional
framework and roles and responsibilities
WWW.SUPRABHA.ORG

6. Contact Us
SUPRABHA TA Program
EY LLP, WorldMark 1,
Aerocity District,
New Delhi - 110037, India
Phone: +91 11 66718000
Email: info@suprabha.org
Website: www.suprabha.org
Follow:
WWW.SUPRABHA.ORG