Background
GERC (Net Metering Rooftop Solar PV Grid Interactive Systems) Regulations, 2016 were notified by the Gujarat Electricity Regulatory Commission (GERC) under the Electricity Act, 2003. These Regulations establish the framework governing the installation, interconnection, operation, metering, and energy accounting of Rooftop Solar PV Systems in Gujarat under net metering and gross metering arrangements. The Regulations aim to facilitate widespread adoption of rooftop solar energy by eligible consumers and prosumers — including residential, government, industrial, commercial, and institutional entities — by placing an obligation on distribution licensees to provide net or gross metering arrangements on a non-discriminatory, first-come-first-served basis.
The Regulations have been progressively amended through five Amendment Regulations — in 2017, 2020, 2022, 2024, and 2025 — reflecting evolving policy priorities such as the introduction of gross metering for larger systems, differentiated energy accounting for various consumer categories, integration with the PM Surya Ghar Muft Bijli Yojana, revised system strengthening charge structures for LT and HT consumers, updated connectivity norms, and alignment with the national REC framework and RPO obligations. The 2022 Amendment was particularly significant in restructuring the energy accounting framework for different project types — residential, captive, third-party sale, REC-based, and RPO-compliance projects.
Applicability
These Regulations shall apply to the distribution licensee and consumers of electricity of distribution licensee availing supply from it in its area of supply in the State of Gujarat, or consumers who are receiving electricity from its own generating source or from solar power plant set up by third party but situated in the distribution licensee area or prosumer who consumes electricity from the grid and injects electricity from its Solar Power System into the grid for supply to Distribution Licensee using same point of supply
“Third party” for this Regulations means a developer setting up solar project on the Rooftop/premises of a consumer/prosumer for generation and sale of such power to the consumer/prosumer in the same premises.
Compliance Requirements under the Regulations:
The distribution licensee shall provide net metering or gross metering arrangement to every eligible consumer or prosumer who intends to install a grid-connected Rooftop Solar PV System within its area of supply, on a non-discriminatory and first-come-first-served basis. This obligation is subject to the condition that the consumer or prosumer is eligible to install the system of the rated capacity as specified under these Regulations, and that the interconnection of such system with the grid is undertaken in compliance with the Central Electricity Authority (Technical Standards for Connectivity to the Grid) Regulations, 2007, the CEA (Technical Standards for Connectivity of Distributed Generation Resources) Regulations, 2013, and the GERC (Terms and Conditions of Intra-State Open Access) Regulations, 2011, as amended from time to time.
The distribution licensee shall provide net metering or gross metering arrangement to eligible consumers and prosumers. The cumulative capacity allowed at a particular distribution transformer shall not exceed the capacity of the distribution transformer. The distribution licensee shall update the distribution transformer capacity available for connecting Rooftop Solar PV Systems on a yearly basis and provide this information to the Commission. The cost of strengthening of distribution infrastructure — including the distribution transformer — as necessary to facilitate the installation of Rooftop Solar PV Systems up to 6 kW (including subsequent additions aggregating up to 6 kW) shall be included in the Annual Revenue Requirement of the Distribution Licensee.
For LT consumers installing rooftop solar capacity above 6 kW up to 100 kW, State DISCOMs shall recover system strengthening charges on a per-kW basis — applicable for new or additional LT load — at rates approved by the Commission from time to time. Where the addition of rooftop solar capacity results in the total rooftop solar capacity exceeding 6 kW, system strengthening charges shall be recovered only for the additional capacity. In the case of other distribution licensees, any required upgradation of distribution infrastructure (such as service line or distribution transformer augmentation) shall be carried out by the distribution licensee, with the cost borne by the consumer. As and when the Commission approves recovery of charges on a per-kW basis for the release of new connections or additional load, the same shall apply to system strengthening charges for rooftop solar PV installations.
For HT consumers installing rooftop solar capacity above 6 kW up to 1,000 kW, State DISCOMs shall recover system strengthening charges on a per-kVA basis — applicable for new or additional HT load — from the applicant at rates approved by the Commission from time to time. Where the addition of rooftop solar capacity raises the total above 6 kW, system strengthening charges apply only to the additional capacity. For other distribution licensees, any required distribution infrastructure upgrades shall be carried out by the licensee, with costs borne by the consumer. The minimum capacity permitted for installation of a Rooftop Solar PV System is 1 kW.
An eligible consumer or prosumer must be a consumer of the local distribution licensee, must legally possess or rent the premises (including rooftop, terrace, building, or open area) where the Rooftop Solar PV System is to be installed, must connect the system to the licensee’s network, and must consume the generated power on-site; any surplus energy shall be governed by Regulation 9. Under gross metering, the consumer or prosumer shall inject all electricity generated from the Rooftop Solar PV System into the grid as a sale to the licensee at the tariff determined by the Commission. Any individual, company, body corporate, association, or body of individuals (whether incorporated or not), or artificial juridical person, is eligible to set up Solar Power Systems for captive use, sale to the Distribution Licensee, or third-party sale — whether under the REC mechanism or for RPO fulfilment — subject to the Electricity Act, 2003.
Rooftop Solar PV is permitted under net metering for systems between 1 kW and 1,000 kW, and under gross metering for systems above 10 kW up to 1,000 kW. The installed capacity must comply with the GERC (Electricity Supply Code and Related Matters) Regulations, 2015 and the GERC (Terms and Conditions of Intra-State Open Access) Regulations, 2011, as amended. Residential consumers may install projects regardless of sanctioned load and avail applicable scheme incentives. Captive and third-party sale projects are allowed up to the sanctioned load or contract demand within the prescribed limits. Projects set up for RPO compliance are permitted irrespective of sanctioned load or contract demand. Installed capacity must be between 1 kW and 1 MW.
All concerned entities including the distribution licensee, consumer, and GEDA — must strictly adhere to the timelines prescribed under Regulation 7 for the execution of all activities related to rooftop solar PV projects. Applications for systems up to 10 kW, if complete, shall be deemed accepted without requiring a technical feasibility study, and any required load enhancement shall be carried out by the Distribution Licensee. Delay without valid reason attracts compensation of at least ₹500 per day. No separate connectivity agreement is required for systems under the PM Surya Ghar Muft Bijli Yojana; consumers are deemed bound by these Regulations. The agreement commences from the commissioning date, and the DISCOM shall notify the applicant of the start date and the applicable surplus energy purchase rate.
Energy injected into the grid prior to commissioning of the Rooftop Solar PV System is treated as inadvertent injection, and no compensation is payable for the same. Bills must separately show energy injected, energy supplied, net billed units, and net export. Under gross metering, generation by the system and supply to the licensee, as well as supply to the prosumer, are billed separately at Commission-approved tariffs. Rooftop solar projects commissioned under earlier Net Metering Regulations shall continue energy accounting as per those Regulations. However, any addition or reduction in solar capacity or sanctioned or contracted load makes the setup distinct, requiring a fresh agreement under the current Regulations for the added capacity. For gross metering, energy from rooftop solar by residential or government consumers on owned or legally possessed premises shall be purchased by the Distribution Licensee at rates set by the Commission, with the draft agreement in Annexure IV of these Regulations.
Residential consumers may install rooftop solar systems regardless of sanctioned load, within applicable capacity limits, and avail applicable Government incentives. Projects may also be set up by solar developers under third-party sale arrangements with agreements. Energy accounting for residential consumers is done on a billing cycle basis. Where solar generation under net metering exceeds consumption, surplus energy is purchased by the Distribution Licensee at ₹2.25 per unit for the first five years from commissioning (for self-owned systems and SURYA Gujarat scheme consumers), and thereafter at 75% of GUVNL’s recent average tariff for the remaining term. For third-party sale under Clause 9.1.2, the rate is 75% of such average, fixed for the agreement term. Rates are declared half-yearly by GUVNL. Excess grid drawl is charged at applicable tariffs. No banking charges apply to residential consumers. Electricity supplied by the licensee to the prosumer is billed separately at applicable tariffs each billing cycle.
Regulation 9.2 applies to industrial, commercial, institutional, and other consumers setting up rooftop solar projects for captive use. Electricity consumption must comply with the Electricity Rules, 2005. No capacity limits apply beyond the overall rooftop limits. The captive consumer must own the plant and consume the generated energy in proportion as per the Electricity Rules, 2005. Captive plant owners must annually prove ownership and proportional energy use by submitting requisite documents to the Chief Electrical Inspector and the Distribution Licensee. Failure to do so results in the energy being treated as third-party sale with applicable surcharges. For HT/EHV and LT demand-based consumers, set-off is allowed from 07:00 to 18:00 on the same day (HT/EHV) or within the same billing cycle (LT demand-based). Surplus energy is compensated at ₹2.25 per unit for MSMEs for five years and then at 75% of GUVNL’s average tariff; for others, at 75%. Banking charges apply at ₹1.50 per unit for demand-based consumers, ₹1.10 per unit for MSME manufacturing units and others; no banking charges apply to Government entities. A one-time switch from captive mode to distribution licensee sale mode is allowed at GUVNL’s lowest discovered tariff.
Sale of solar power from a rooftop solar system to another consumer is treated as third-party sale, and solar developers are permitted to install projects via third-party sale agreements subject to capacity limits under Regulation 6.2. For HT/EHV consumers, energy set-off is allowed from 07:00 to 18:00 on the same day; surplus energy is purchased by the Distribution Licensee at specified rates. For LT demand-based consumers, set-off is allowed between 07:00 and 18:00 within the same billing cycle. For LT non-demand-based consumers, set-off is on a full billing cycle basis. Surplus energy remaining after set-off is compensated by the Distribution Licensee at 75% of the simple average tariff discovered by GUVNL through competitive bidding for non-park solar projects in the preceding six months (April–September or October–March), from COD, and remains fixed for the agreement term. Excess grid drawl is charged at applicable tariffs. Banking charges apply at ₹1.50 per unit for demand-based consumers and ₹1.10 per unit for MSME and other consumers; no banking charges apply to Government buildings.
Rooftop solar projects may be set up under the REC mechanism as per CERC procedures. For captive or third-party use, capacity up to the sanctioned load or contract demand is permitted. Energy accounting is done on a 15-minute time-block basis. Where the Distribution Licensee agrees to purchase the electricity component of such a project under the REC mechanism, the applicable tariff shall be 65% of the simple average of tariff discovered and contracted by GUVNL through competitive bidding for non-park solar projects in the preceding six months, from the date of PPA execution, and shall remain fixed for the entire agreement term. No banking charges are applicable. For projects set up for third-party sale, Cross Subsidy Surcharge and Additional Surcharge apply as for normal open access consumers. Transmission, wheeling charges, and losses as determined by the Commission shall be levied as applicable.
Consumers may install rooftop solar projects to meet their Renewable Power Purchase Obligations regardless of contracted demand, subject to the capacity limits under Regulation 6.2. Energy accounting is done on a 15-minute time-block basis. Surplus energy injected into the grid after set-off is compensated by the Distribution Licensee at 75% of GUVNL’s simple average tariff discovered through competitive bidding for non-park solar projects in the preceding six months, from COD, and remains fixed for the agreement term. Excess grid drawl after set-off is charged at applicable tariffs as determined by the Commission. No banking charges are applicable.
For non-obligated consumers under net metering, solar energy consumed qualifies toward the distribution licensee’s RPO, and no Renewable Energy Certificates are issued as the energy is counted for the Distribution Licensee’s RPO compliance. For industrial, commercial, and consumers other than residential and government who utilise both the energy attribute and the renewable attribute of the generated solar energy, solar energy generated and consumed during a 15-minute time block shall be credited toward meeting the consumer’s RPO, and no REC shall be issued for such generation. Surplus energy, if any, exported during the 15-minute time block and purchased by the Distribution Licensee shall be credited toward meeting the Distribution Licensee’s RPO, and no REC shall be issued for such generation. However, if such consumers utilise the renewable attribute to obtain RECs under the REC mechanism, the entire solar energy generated in the 15-minute time block shall be considered for issuance of RECs.
Rooftop solar systems under net metering for captive use are exempt from transmission charges, wheeling charges, losses, cross-subsidy surcharge, and additional surcharge where the point of injection and consumption are the same and within the same premises without use of the grid. Cross Subsidy Surcharge and Additional Surcharge are not applicable in the case of captive projects. For projects set up for third-party sale, Cross Subsidy Surcharge and Additional Surcharge shall be equal to the charges applicable to normal open access consumers as determined by the Commission from time to time. Applicable open access charges shall apply where the grid is utilised.
Metering must comply with the CEA (Installation and Operation of Meters) Regulations, 2006. A bi-directional meter, or two separate import and export meters, shall replace existing meters, with the cost borne by the consumer if provided by the licensee. ABT (Availability Based Tariff) meters are required for certain categories of consumers. All meters must support MRI (Meter Reading Instrument) or wireless reading facilities. The main Solar Meter (1.0 accuracy class) and the Net Meter (0.5S accuracy class or better) must comply with Annexure VI of these Regulations. Check meters are mandatory for rooftop solar systems above 20 kW and optional for systems up to 20 kW. The consumer bears the cost of new or additional meters, which must be tested, installed, inspected, verified, and sealed by the distribution licensee in the consumer’s presence. If the consumer is on a time-of-day tariff, meters must also record time-based consumption and generation. For loads up to 1 MW, non-ABT meters may be permitted with reprogramming at the consumer’s cost.
One hundred percent of the gross proceeds on account of Clean Development Mechanism (CDM) benefits arising from the Rooftop Solar PV System shall be retained by the Rooftop Solar PV System owner.
No demand cut shall be applicable for residential and government consumers with installed Rooftop Solar PV Systems. Industrial, commercial, and other consumers shall be exempted from demand cut up to 50% of the installed solar capacity, wherever technically feasible.
Interconnection of the Rooftop Solar PV System with the distribution network must comply with the CEA (Technical Standards for Connectivity to the Grid) Regulations, 2007; the CEA (Technical Standards for Connectivity of Distributed Generation Resources) Regulations, 2013; the GERC (Terms and Conditions of Intra-State Open Access) Regulations, 2011; and the CEA (Measures Relating to Safety and Electric Supply) Regulations, 2010, as amended from time to time. A variation in rated capacity of up to ±5% is permitted, subject to meeting the technical requirements for grid interconnection with the licensee’s network.
The Rooftop Solar PV System’s connectivity to the grid must comply with the supply voltage levels specified under the GERC (Electricity Supply Code and Related Matters) Regulations, 2015, as amended from time to time. HT consumers may install systems at LT or HT and connect to their LT or HT network. Interconnection must comply with the CEA (Measures Relating to Safety and Electric Supply) Regulations, 2010; the CEA (Standards of Connectivity of Distributed Generation Resources) Regulations, 2013; and the GERC (Terms and Conditions of Intra-State Open Access) Regulations, 2011, as amended.
The Rooftop Solar PV generator is responsible for safe operation, maintenance, and rectification of defects in the system up to the interconnection point. Beyond the interconnection point — including the net meter — responsibility lies with the distribution licensee. The distribution licensee may call upon the Rooftop Solar PV generator to rectify any defect within two days of intimation.
The consumer or Rooftop Solar PV generator is solely responsible for any accidents — fatal or non-fatal — to humans or animals caused by back feeding from the system when grid supply is off, as determined by the Chief Electrical Inspector. The distribution licensee reserves the right to disconnect the consumer’s installation at any time in the event of such exigencies to prevent accidents or damage to persons and materials. Tests as per EN 50160 and the distribution licensee’s standards shall be carried out by the Chief Electrical Inspector to ensure the quality of power generated from the Rooftop Solar PV System.
Any alternate source of supply — including battery power, diesel generator power, or backup power — shall be restricted to the consumer’s network. The consumer is responsible for taking adequate safety measures to prevent any such alternate power source from extending to or feeding into the distribution licensee’s LT grid on failure of the distribution licensee’s grid supply.
The distribution licensee shall have the right to disconnect the Rooftop Solar PV System from its system under the following conditions: (i) emergencies or maintenance requirements on the distribution licensee’s system; (ii) hazardous conditions existing on the distribution licensee’s system due to the operation of the Rooftop Solar PV System or protective equipment, as determined by the Distribution Licensee, Transmission Licensee, or SLDC; and (iii) adverse electrical effects — such as power quality problems — on the electrical equipment of other consumers of the distribution licensee, caused by the Rooftop Solar PV System, as determined by the distribution licensee.
Rooftop Solar PV systems must detect unintended islanding and include anti-islanding protection, tested as per IEC 62116. They must have an automatic synchronisation device unless this function is already built into the inverter. Systems operating in parallel with the grid must have protection to detect abnormalities and disconnect automatically, including: over/under voltage trips (above 110% or below 80% within 2 seconds); over/under frequency trips (above 50.5 Hz or below 47.5 Hz within 0.2 seconds); and immediate shutdown during circuit faults. Systems must prevent energising de-energised circuits and reconnect only when voltage and frequency are stable for at least 60 seconds. Anti-islanding protection must stop supply within 2 seconds of islanding. Equipment must include suitable circuit breakers, ensure safety despite single component failure, and withstand up to 220% of nominal voltage at the interconnection point.
On each synchronisation, the Rooftop Solar PV System must not cause voltage fluctuation beyond ±5% at the interconnection point. The distribution licensee may require a manually operated isolating switch between the Rooftop Solar PV System and the electrical system, ensuring visible separation, clear open/closed indication, and 24×7 access to distribution licensee personnel without requiring the applicant’s clearance. The isolating switch shall not be rated for load break and shall not have over-current protection features, and shall be located at a height of at least 2.44 metres above ground level. Prior to first synchronisation, the applicant and the licensee shall agree on protection features and control diagrams. The power conditioning unit shall have features to filter out harmonics and other distortions before injecting energy into the distribution utility’s system. Technical, power quality, and inverter standards shall be as per Annexure V of these Regulations or any other standards specified by CEA from time to time.
Commissioning tests of the Rooftop Solar PV System must be conducted in the presence of representatives of the consumer, GEDA, and the distribution licensee, all of whom must sign the commissioning certificate. The commissioning date is the date of successful testing. The commissioning certificate must contain: details of solar PV panels (name of manufacturer, type, size/capacity); details of the inverter (type and size); total capacity of the Solar PV Plant; and details of the meter installed (type, accuracy class, serial number).
Existing rooftop solar project owners may replace damaged or defective solar modules, inverters, or other parts with equivalent available components where the original components are no longer available. The owner must immediately inform the distribution licensee of any such replacement. The distribution licensee must verify the replacement within 30 days of receiving the intimation; if verification is not carried out within 30 days, the replacement shall be deemed approved.
Upon receipt of intimation from the rooftop solar project owner regarding replacement of damaged or defective modules, inverters, or other parts with equivalent available components, the distribution licensee shall carry out verification of such replacement within 30 days. If the licensee fails to verify within this period, the replacement shall be deemed to have been approved.
Any addition of solar modules to a Solar Power Plant after its commissioning — where a Sale/Purchase Agreement has been signed between the Solar Project Developer and the Distribution Licensee or Consumer/Prosumer — without prior approval of the concerned distribution licensee shall be treated as ‘Unauthorised Capacity Addition’. Such unauthorised addition shall attract a penalty at twice the applicable tariff for the Solar Developer or Consumer for the period of such additional capacity.
Any installation of a new Solar Rooftop Project and its connection to the distribution licensee’s network without the prior approval of the concerned distribution licensee shall be treated as unauthorised connection or unauthorised use. Such unauthorised installation shall attract a penalty at twice the applicable tariff for the Solar Developer or Consumer for the period of such capacity. The equipment and capacities of the Solar Power Plant connected without approval shall be liable to be removed.
Penalty & Consequences
The following penalty provisions apply across the compliance obligations covered in this blog. These have been consolidated and de-duplicated for ease of reference:
Regulation 16 — Penalty for Failure of Net Metering System
In case of failure of the net metering system attributable to the distribution licensee, penalty or compensation shall be payable as per the provisions of the GERC (Standard of Performance of Distribution Licensee) Regulations, 2005, as amended from time to time.
Regulation 16.2 — Penalty for Unauthorised Capacity Addition
Any addition of solar capacity after commissioning without prior approval of the distribution licensee shall be treated as ‘Unauthorised Capacity Addition’ and shall attract a penalty at twice the applicable tariff for the Solar Developer or Consumer for the period of such additional capacity and equipment, to the extent of the unauthorised capacity added.
Regulation 16.3 — Penalty for Unauthorised Connection/Use
Any installation of a new Solar Rooftop Project connected to the distribution licensee’s network without prior approval shall be treated as unauthorised connection or use and shall attract a penalty at twice the applicable tariff for the Solar Developer or Consumer for the period of such capacity and equipment, to the extent of the unauthorised solar power plant capacity connected without approval. Such equipment shall also be liable to be removed.
Section 146 of the Electricity Act, 2003 — Punishment for Non-Compliance
Whoever fails to comply with any order or direction issued under the Electricity Act, 2003, or contravenes — or attempts or abets the contravention of — any provision of the Act or any rules or regulations made thereunder, shall be punishable with imprisonment for a term which may extend to three months, or with a fine which may extend to one lakh rupees, or with both, in respect of each offence. In the case of a continuing failure, a further fine which may extend to five thousand rupees for every day during which the failure continues after conviction of the first such offence shall also be imposed.
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