BTM Solar Systems Not Eligible For Grid-Connected Rebates, RERC Reiterates

The Rajasthan Electricity Regulatory Commission (RERC) has reiterated that behind-the-meter (BTM) solar systems are not eligible for rebates applicable to grid-connected solar plants, reaffirming the existing regulatory framework governing captive and rooftop solar installations.

In its latest order, the state power regulator clarified that BTM solar systems already enjoy certain financial advantages, including the non-applicability of open access charges, and therefore cannot claim additional incentives designed for grid-connected installations.

Case Filed By Shree Cement

The ruling came in response to a petition filed by Shree Cement Ltd, which challenged the denial of load factor rebates on electricity generated from its on-site captive solar plant.

The dispute centred on whether a BTM captive solar plant, which is not connected to the grid through a net-metering arrangement, could be considered for calculating load factor eligibility for concessional tariffs. Shree Cement operates a 7.08 MW on-site solar plant and said it received an electricity bill of Rs 2.19 crore for December 2025 for its grinding unit in Jobner.

Company's Arguments

The company argued that its total electricity consumption of 3.16 million units, including about 775,000 units generated from the captive solar plant, resulted in a combined load factor of 57.49%, exceeding the 50% threshold required to qualify for a lower tariff under the RERC’s July 2024 tariff order. It is alleged that Jaipur Vidyut Vitran Nigam Ltd (JVVNL) ignored solar generation while computing the load factor and billed the company at Rs 7.008 per unit instead of the concessional Rs 6.048 per unit.

JVVNL contended that Shree Cement’s solar plant was not connected to the grid and that BTM solar installations constitute a separate category, not covered under the provisions applicable to grid-connected rooftop solar or captive power plants for the purpose of load factor rebates.

Commission's Views 

The Commission agreed with the discom, noting that BTM plants do not attract open access-related charges, unlike grid-connected captive systems. It held that JVVNL’s treatment of the solar plant as a BTM installation and its exclusion from load factor calculations were consistent with the applicable regulations.

“In view of the above, the Commission holds that the respondent’s treatment of the petitioner’s solar plant as a behind-the-meter installation and its consequential exclusion from load factor computation is consistent with the applicable regulatory framework. Therefore, no violation of the Tariff Order can be established,” the RERC said, disposing of the petition.