The Rajasthan Electricity Regulatory Commission (RERC) notified the regulations for virtual and group net metering for renewable energy projects roughly five months ago, but implementation has progressed slowly. Rooftop solar installers say that while the notification has sparked consumers’ interest, distribution companies (DISCOMs) are yet to issue operational guidelines.

Virtual and group net metering were introduced in response to Jaipur Vidyut Vitran Nigam’s (JVVNL) petition seeking approval for such projects.

Under the RERC regulations, eligible consumers can install distributed renewable energy projects ranging from over 1 kW up to 1 MW under virtual or group net metering. Projects exceeding 1 MW must be developed in accordance with the Commission’s renewable energy tariff regulations and the Green Energy Open Access framework. Consumers with contract demand between 100 kW and 1 MW can choose between virtual or group net metering and green energy open access.

Virtual net metering enables multiple households to share electricity from a single rooftop solar system. The generated power is fed into the grid and allocated virtually, with each consumer receiving bill credits based on their share, reducing electricity costs.

Group net metering allows a consumer with multiple electricity connections to distribute renewable energy generated at a single site across all its premises, improving energy efficiency and reducing overall electricity expenses.

The regulations for virtual and group net metering arrangements allow for open access only to wheel energy to the beneficiary connections of the same consumer.

Growing Interest

Installers said the RERC notification has driven a noticeable uptick in inquiries, pilot-stage discussions, and early project exploration, and is expected to accelerate rooftop solar adoption in the state.

They also reported improved awareness among both residential and commercial consumers following the framework’s introduction.

Nitin Agarwal, CEO of the Rajasthan Solar Association, said the RERC issued the framework for virtual and group net metering in response to the Association’s request.

Explaining the expected success of these models, Agarwal said nearly 75% of new homebuyers are opting for multi-story buildings, where limited rooftop space restricts solar adoption for multiple users.

He added that, while speaking with real estate developers, they expressed interest in bringing the benefits of solar power to apartments with 600-700 residents by leasing land and setting up solar projects.

Installers say virtual and group net metering can benefit commercial and industrial consumers that lack sufficient rooftop space.

Shared Savings

Solar installers said virtual and group net metering facilitates multiple consumers within the same DISCOM circle to benefit from solar without being constrained by limited rooftop space. While these models do not reduce upfront capital costs, they enable broader participation, helping consumers reduce their dependence on the grid. Adoption, however, will hinge on the level of savings generated by shared solar systems, whether on a single rooftop or on leased land.

Agarwal said consumers paying grid tariffs of ₹8 (~$0.085)/kWh to ₹10 (~$0.107)/kWh can save around ₹3.5 (~$0.0375)/kWh, even without adequate rooftop space.

The regulations offer a range of waivers and incentives for projects under virtual and group net metering, including exemptions from transmission charges and losses for all consumer categories. Domestic consumers benefit from comprehensive waivers covering wheeling, transmission, banking, cross-subsidy, and additional surcharges, regardless of ownership model, as well as exemption from technical feasibility studies for systems up to 10 kW. To encourage storage integration, projects with at least 5% battery capacity receive a 75% waiver on wheeling charges, with incremental benefits for higher storage capacity, and a full waiver beyond 30%. Additionally, RESCO-owned projects (excluding domestic) are exempt from banking and wheeling charges and losses, while government connections are exempt from cross-subsidy and additional surcharges.

Slow Progress

RERC has introduced time-bound processing and deemed feasibility provisions for small residential projects to accelerate adoption. However, industry experts note that the lack of operational guidelines has limited on-the-ground progress in virtual and group net metering projects.

Radhika Choudary, Managing Director at Freyr Energy, said that while a few projects under these mechanisms have been initiated, overall activity remains limited and fragmented. “Most developments are currently in the early adoption phase, with stakeholders still navigating approval processes and billing mechanisms,” she said.

Installers estimate that clarity on DISCOM-level guidelines could take up to two months, with implementation likely requiring an additional six months. Agarwal noted that, at present, only JVVNL has issued an order permitting virtual and group net metering projects in the state.

Though several charges are waived across consumer categories, if a project is located away from the consumer’s premises, only banking, cross-subsidy, and additional surcharges are exempt, while wheeling charges and losses continue to apply.

Ramakant Jangid, Director at The Ultra Solar, highlighted key gaps, stating that DISCOMs have yet to notify applicable transmission and wheeling charges for power procurement under these models and have not launched an online application process for project approvals.

A Rajasthan DISCOM official indicated that detailed guidelines are expected to be issued shortly following stakeholder consultations. The official added that the framework for virtual and group net metering projects has been aligned with the RERC’s October regulations and is expected to see strong participation from the commercial and industrial segments.

Adoption Challenges

Despite the expected boost in rooftop installations, installers and industry experts anticipate implementation bottlenecks. These are likely to stem from regulatory ambiguity, limited consumer awareness, and infrastructure readiness for such models.

Rooftop installers said that while the model itself is new, the primary shift lies in the billing mechanism, where energy credits are adjusted based on each user’s share of generation from a common system. They also noted that integrating DISCOM billing systems to account for consumption across multiple consumers could pose challenges.

Agarwal said the real challenges in virtual and group net metering will emerge only after full-scale implementation, citing 25–30-day delays in meter testing seen during the initial rollout of rooftop solar projects.

To accelerate adoption, industry stakeholders emphasized the need to streamline DISCOM processes, ensure greater policy clarity, and digitize application procedures.