Rajasthan Introduces Virtual Net-Metering & Group Net Metering

Rajasthan Electricity Regulatory Commission (RERC) has introduced a groundbreaking regulatory framework allowing consumers to benefit from renewable energy without installing panels on their own rooftops. 

The RERC Grid Interactive Distributed Renewable Energy Generating Systems (Third Amendment) Regulations, 2025, introduce Virtual Net Metering (VNM) and Group Net Metering (GNM), marking a major step toward democratising access to solar power across the state.​

Expanding Consumer Access

Under the new system, consumers can receive energy credits from renewable power plants located anywhere within their electricity distribution area. Households, businesses, institutions, and government offices alike can collectively invest in or subscribe to remote solar or renewable installations. 

This means consumers who lack rooftop space, such as apartment residents or tenants, can now share in the benefits of solar energy.​

The framework also defines Virtual Net Metering (VNM) as an arrangement where a centrally located renewable system exports energy to the grid, and credits are apportioned across multiple consumer connections. 

Similarly, Group Net Metering (GNM) allows consumers with several electricity connections, such as a business chain or institutional complex, to balance solar energy generation and consumption across different locations.​

Key Regulatory Provisions

The new regulations cover both ownership and operational flexibility. Renewable plants may be installed on rooftops, balconies, elevated structures, land, or water bodies, and can be owned or operated by consumers themselves, DISCOMs, or Renewable Energy Service Companies (RESCOs).​

To accelerate adoption, technical feasibility studies will not be required for residential projects with a capacity of up to 10 kW under VNM and GNM. For larger or non-domestic systems, approvals will be time-bound, 15 days for existing connections and 30 days for new ones, ensuring procedural efficiency.​

The Commission has also expanded the applicability of VNM and GNM beyond domestic and government consumers, allowing all categories, including small industries, commercial buildings, and educational institutions, to participate. The individual consumer participation limit has been raised from 10 kW to their full sanctioned load, removing a major barrier to adoption.​

Financial and Operational Incentives

RERC has introduced a balanced approach to charges and exemptions to ensure both inclusivity and system security.

Domestic consumers are exempted from wheeling, banking, transmission, and cross-subsidy charges. While non-domestic consumers are exempted from several surcharges if systems are installed on their premises, but will pay nominal wheeling charges for remote installations. No transmission charges or losses will apply for any VNM or GNM systems, ensuring cost competitiveness.​

The framework also paves the way for peer-to-peer (P2P) energy trading and plug-and-play solar systems, signalling RERC’s intent to build an agile distributed energy ecosystem equipped for future decentralisation.​

Enabling Broader Solar Participation

RERC chairman Rajesh Sharma emphasised during the final hearing that enabling mechanisms like VNM and GNM will remove location-based barriers to renewable adoption. The Commission noted that this policy shift aligns with both the Rajasthan Integrated Clean Energy Policy (2024) and India’s national target of Net Zero by 2070, ensuring equitable access to distributed renewable generation.​

By broadening participation, the framework aims to reduce grid losses, improve demand-side management, and help DISCOMs meet Renewable Purchase Obligations. For consumers, it opens an avenue to cut costs, gain energy independence, and support sustainability without any on-site infrastructure.​