Telangana Unveils Rooftop Solar Regulation 2025 with Flexible Net Metering Models

The Telangana Electricity Regulatory Commission (TERC) has issued the "Rooftop Solar PV Grid Interactive Systems Regulation, 2025," which replaces the previous 2016 framework and introduces comprehensive measures to facilitate multiple solar net metering models, provide financial clarity, and ensure technical and safety standards. Telangana, with limited land availability for utility scale solar, needs to catch up on rooftop installations to truly make an impaxt from solar on its demand.  

Key Policy Highlights

The new regulation empowers consumers to install rooftop solar photovoltaic (PV) systems with flexible options, including Net Metering, Gross Metering, Group Net Metering, and Virtual Net Metering. 

Capacity limits have been notably increased, with up to 500 kWp allowed under net metering arrangements and up to 1 MWp under gross metering, enabling industrial, commercial, and large residential consumers to harness solar energy more effectively.

The regulation mandates a non-discriminatory ‘first-come, first-served' basis for approvals and provides clear timelines for application processing and interconnection feasibility studies, enhancing transparency and ease of adoption.

Financially, the policy exempts rooftop solar prosumers from banking charges, wheeling charges, cross-subsidy, and additional surcharges under several metering arrangements, significantly improving the economic viability of rooftop solar investments. 

The purchase of surplus solar power by distribution licensees will be at rates derived from prior solar power purchase agreements, ensuring fairness and clarity.

Enhanced Technical and Safety Standards

The regulation aligns with Central Electricity Authority (CEA) standards on connectivity, safety, power quality, and inverter technical specifications. It includes provisions for automatic synchronisation and anti-islanding protection to prevent accidental power feedback during grid outages.

Rooftop solar system sizes must meet minimum thresholds, and systems exceeding 56 kWp require certification from the Chief Electrical Inspector, a check for adherence to safety standards.

Consumer-Friendly Implementation and Accountability

The regulation introduces streamlined procedures for applications and approvals, with dedicated nodal officers at distribution licensees facilitating consumer interactions. Connection agreements will be standardised, with provisions for compensation by licensees in case of delays, the regulation entails.

A notable innovation is the introduction of group and virtual net metering models that allow consumers to share solar benefits across multiple connections, particularly benefiting residential townships and housing colonies.

Commitment to Renewable Energy Goals

The regulation reinforces Telangana's commitment to renewable energy by enabling rooftop solar generation to count toward Renewable Purchase Obligations (RPOs) of distribution licensees. It also encourages third-party owners and vendor partnerships, expanding the rooftop solar ecosystem.

Incentives from both central and state governments under renewable energy missions continue to be applicable and claimable through authorised state nodal agencies.

As of October 31, 2025, the state achieved about 664 MW of rooftop solar capacity.