Gujarat to be first Indian state to introduce net metering

Share on facebook
Share on twitter
Share on linkedin
Share on reddit
Share on email

Gujarat, India’s leading solar state, is to introduce a net metering policy in the coming weeks, according to local press reports.

Shri Pandian, principal secretary of Gujarat’s Ministry of Energy and Petrochemicals, said a net metering policy would be implemented in a few weeks, according to a report in India’s Financial Express.

Gujarat has the highest installed solar capacity in India and is considered a national leader in solar policy.

Solar consultancy, Bridge to India’s head of market intelligence, Jasmeet Khurana said: “The anticipation from Gujarat is usually the highest given its policy implementation track.”


Pradeep Palelli, managing partner of Efficient Carbon, a solar consulting company based in Hyderabad, told PV Tech the main benefits for encouraging on grid solar rather than independent systems and storage through net metering in India, is to “ease peak power deficits”. In 2012 India suffered the largest black out in history. Connecting residential solar systems could help reduce widespread power cuts.

Khurana said introducing net metering would also increase the average size of systems installed and improve deployment rates by up to 50%. Elaborating further that current subsidies warrant the preconception solar is too expensive for many, Khurana said the introduction of net metering could help temper myths of exaggerated costs, with banks and financing companies beginning to view residential solar as “similar to vehicle loans or house loans”.

“Once this picks up, the Subsidy problem or initial high cost perception of domestic solar will be solved as down payments will be small, with loans spreading across a few years. This will increase adoption in a big way across India,” he said.

Palelli said net metering was something many states would “look forward to”, as charges for transporting electricity over transmission lines (wheeling charges) are – not in highly populated regions like Delhi or Mumbai – generally either non existent for domestic consumers, very small (Andhra Pradesh INR0.06), or levied on to solely commercial consumers. Many states are anticipating grid charges will be compensated by net metering consumers.

“It's a slow start but once the initial adopters prove the benefits of net metering accrued to the consumer and the grid in general, other states may follow,” predicts Palelli.


Madhavan Nampoothiri, founder and director for RESolve Energy Consultants, said at Intersolar India 2013, the challenges facing net metering in India, and globally are: energy accounting and interconnection arrangements “including level of grid penetration and metering”.

Nampoothiri said commercial lending for residential solar is presently “almost non-existent” in India. “Even with the introduction of net metering, financing will continue to be a key challenge until the market has some volumes,” he said.

Also the “actual implementation of net metering will be a huge challenge in our view” added Khurana.

In relation to net metering disputes in the US being repeated in India, Nampoothiri said the scarcity of grid connected rooftops in India should not create any “problems from the utilities at this stage” and the state drafted restrictions on the amount of solar energy that can be exported will address “stability issues of the grid”.

Khurana said the “only motivation” for utilities to adopt net metering for solar was to meet renewable purchase obligations (RPO). Although Gujarat already has gross-metering – where all generated electricity is exported to the grid – which “the utilities have not resisted publicly”, Khrana said utilities are not “excited about the prospects and the government is currently exploring ways to ensure a fair deal to utilities”.

Moving forwards

Gujarat’s capital, Gandhinagar has already been running a pilot solar rooftop programme which is generating power and provides incentives to rooftop owners for installing rooftop PV. “The programme is the first of its kind in India in terms of its structure and it seems to be on track. Introduction of net metering will be a step forward,” Khurana said.

“If the electricity rates are attractive, the customers can either save money or even make money by exporting the electricity to the grid,” added Nampoothiri.

Eight states have already drafted net metering policies: Tamil Nadu, Andhra Pradesh, Uttarakhand, Gujarat, Kerala, Delhi, Karnataka and Punjab.

Palelli predicts the state of Andhra Pradesh could use the average pooled purchase cost (APPC) tariff already announced for 2013-2014, of INR3.28 per unit for excess power injected into the grid.

Nampoothiri wrote for Intersolar India 2013 that Tamil Nadu has drafted a cap on electricity rooftop owners, for how much energy they can feed back into the grid. The cap is 90% of the electricity consumed by rooftop owners. Delhi’s electric regulatory commission has released a net metering policy draft that is very similar.

Punjab has the same 90% cap in its August 2013 draft, and a cap of 80% on a predetermined ‘Sanctioned Connected Load’ on the maximum capacity of the rooftop system, and installation capacity ranges must be 1kW to 500kW.

Uttarakhand has a drafted capacity limit eligibility of 300W to 100 kW for projects with battery backup and up to 500 KW without battery backup. System owners can get INR9.20 per kWh for electricity exported to grid in the year 2013-14.

Maharashtra has a working committee drafting a net metering policy.


The government of Gujarat is expected to announce the trailblazing policy by March 2014, due to up coming elections. The Lok Sabha (lower house of parliament) elections are expected in April/May. Nampoothiri said the hurry was because “no new policy announcements can be made till the elections are over”.

“Gujarat intends to introduce the policy before the elections begin,” added Palelli. This would provide Gujarat more time to finalise the policy, as if the net metering policy is not passed by 15 March, it will have to wait until after the elections, 30 June. The details of the precedent-setting policy will be important Khurana said, as the “direction and soundness of policy and regulations for the rooftop market will be a key determinant about the future of solar in India for the coming years”.

26 January 2022
Join this free webinar for our analysis of the growth of N-Type technology including; new capacity expansions and production output. We'll also be looking at the global manufacturing footprint with forecasts on how much product will be made outside of China this year and which companies are driving technology change across the crystalline silicon value chain.
23 February 2022
Held annually since 2016, the Energy Storage Summit Europe is the place to be for senior stakeholders in the European storage industry. Designed to accelerate deployment of storage, we examine evolving chemistries, business models, project design, revenue stacks and use cases for storage. The 2022 edition will include exclusive content around longer duration solutions, energy strategies for wide-scale deployment of EVs and "EnTech", the event which sits at the intersection of digitisation, decentralisation and decarbonation of the power system. Come to meet TSOs, DSOs, Utilities, Developers, Investors and Lenders and leave with new contacts, partners and a wealth of information.
7 March 2022
Take your chance to join the most powerful platform in the MENA region. Middle East Energy (MEE), Intersolar, and ees, the leading energy exhibitions are joining hands to co-deliver an outstanding renewables and energy storage event at Middle East Energy 2021. Renewables and energy storage at MEE is the largest gathering of solar and renewable energy industry professionals in the Middle East & Africa, offering the most effective trade focused platform to international manufacturers and distributors looking to meet regional buyers.
8 March 2022
As Solar Finance & Investment enters its ninth year, we sit on the cusp of a new power market with solar at its heart. The 2022 edition of the event will build on our years of expertise and relationships to bring investors and lenders together with top developers. Connect with leaders in the field and use exclusive insights to drive investment and development decisions for the future. Meet new and existing project partners at the largest gathering of European solar investors and lenders.
23 March 2022
When it comes to storage, the US market exceeded a gigawatt of advanced energy storage installations (weighted towards lithium ion) at 1.46 GW, more than the previous six years in total! An exponential growth rate could see the market hit 7.5 GW p.a. by 2025. The summit will provide a wealth of content around this vital piece in the US power puzzle, with sessions dedicated to explore how companies are making money from batteries, the latest chemistries and their applications as they apply to different use-cases. We ask how investors can match ESG criteria to batteries and we will bring case studies of successful deployment and project execution onto the stage to examine how you can ensure your own projects are successful.
29 March 2022
Now in its 10th sell-out year, Large Scale Solar returns to Lisbon in 2022. We are excited to gather together face-to-face with the European solar industry as we provide unique and exclusive access to a powerful selection of the market's key stakeholders. Join this elite summit to find out how the market is maturing, which new markets are becoming more exciting, how technology is evolving and who's driving the market forward into the 2020s. Always senior, packed with developers, EPCs, utilities and investors this is the event for companies serious about European solar PV.

Read Next

January 19, 2022
Chinese inverter manufacturer Sungrow has launched its new "1+X" central modular inverter with an output of 1.1MW at the World Future Energy Summit in Abu Dhabi.
January 19, 2022
Innovative Solar Systems (ISS), a utility-scale solar developer with a 12GW pipeline, has put itself up for sale, as it seeks partners to support the company in its development of ever larger PV projects across the US.
PV Tech Premium
January 19, 2022
Latin America is fast becoming a lucrative solar market as countries ramp up deployment efforts. In this context, Colombia and Panama stand out as key markets to look out for, MPC Energy Solutions' CEO tells PV Tech Premium
January 19, 2022
US solar developer 8minute Solar Energy has closed US$400 million in financing from institutional investor EIG to bolster its US solar PV and energy storage pipeline.
January 19, 2022
Renewables developer R.Power has signed a power purchase agreement (PPA) with energy trader Axpo for nearly 300MWp of solar in Poland.
January 19, 2022
Energy major Shell has acquired 100% of PV project developer Solar-Konzept Italia (SKI), taking its solar development pipeline in Italy to around 2GW in the process.

Subscribe to Newsletter

Upcoming Events

Upcoming Webinars
January 26, 2022
Free Webinar
Solar Media Events
February 23, 2022
London, UK
Solar Media Events
March 8, 2022
London, UK
Solar Media Events
March 23, 2022
Austin, Texas, USA
Solar Media Events
March 29, 2022
Lisbon, Portugal