KERC’s draft DSPV regulations mandate storage for systems above 10 kW, cap net metering at 500 kW, and expand solar-sharing mechanisms.
June 11, 2026. By EI News Network
The Karnataka Electricity Regulatory Commission (KERC) has released draft regulations proposing a comprehensive overhaul of the state's distributed solar power framework, introducing new rules for grid-connected Distributed Solar Photovoltaic (DSPV) plants, battery storage systems, metering arrangements and consumer participation.
The proposed regulations will replace the KERC (Implementation of Solar Rooftop Photovoltaic Power Plants) Regulations, 2016, after completion of the public consultation process.
KERC said that the revision has become necessary due to the rapid growth of renewable energy capacity in Karnataka and evolving technologies in the solar sector. The state currently has a total renewable energy installed capacity of 21,961.67 MW, including 10,527.03 MW of solar power, which accounts for 57 per cent of Karnataka's overall installed generation capacity of 38,196 MW. Of the state's total solar capacity, about 899.53 MW comes from distributed solar installations. The regulator noted that increasing penetration of renewable energy has created challenges such as intermittency, voltage instability and grid congestion, necessitating a new regulatory framework.
The draft regulations formally replace the term 'Solar Rooftop PV' with 'Distributed Solar Photovoltaic (DSPV)' to reflect the wider range of solar installations now permitted. These include facade-integrated solar panels on building walls, mono-facial and bifacial rooftop systems, as well as elevated ground-mounted solar structures. The proposed regulations will apply to all distribution licensees and eligible consumers across Karnataka.
A key feature of the draft is the introduction of mandatory energy storage requirements. Consumers installing DSPV systems above 10 kW under most metering mechanisms will be required to install hybrid inverters or battery energy storage systems with a minimum storage capacity equivalent to 20 per cent of the plant's energy generation potential. KERC said the move is aimed at improving grid stability and managing the growing share of renewable energy.
KERC has retained multiple metering mechanisms, including net metering, net billing, gross metering, group net metering, virtual net metering and behind-the-meter arrangements. Under the proposed rules, net metering will remain available only for domestic consumers, residential apartments, group housing societies, charitable institutions, government buildings and local authority buildings. The minimum project size will be 1 kW, while the maximum capacity will be limited to the sanctioned load or contract demand of the consumer, subject to a cap of 500 kW.
Net billing and gross metering options will be available to all consumer categories. Under net billing, consumers will be charged retail tariffs for electricity imported from the grid while surplus electricity exported to the grid will be compensated at tariffs determined by KERC. Gross metering consumers will sell all electricity generated by their DSPV systems to the distribution licensee while purchasing their own electricity requirements separately from the grid.
The draft regulations also strengthen provisions relating to Group Net Metering (GNM) and Virtual Net Metering (VNM), enabling consumers to share solar generation across multiple service connections. Under GNM, consumers with multiple electricity connections under the same name and category can offset power consumption across those connections. VNM will allow multiple consumers belonging to the same category, including apartment residents and housing societies, to collectively benefit from a shared solar installation. Both arrangements will require installation of smart meters and will be treated as alternatives to conventional open-access arrangements.
For the first time, KERC has introduced detailed provisions for 'Behind-the-Meter' solar installations. Under this model, consumers can install solar systems exclusively for self-consumption without exporting electricity to the grid. Consumers opting for this mechanism will be required to install reverse power flow relays to prevent energy injection into the distribution network. Any inadvertent export of electricity may attract penalties as determined by the Commission.
The draft regulations also propose stricter eligibility norms. Consumers with pending electricity arrears will not be allowed to install DSPV systems unless the dues are under dispute and the disputed amount has been deposited with the distribution licensee in accordance with the Electricity Act. Open-access consumers will also be allowed to establish DSPV systems under net metering, though excess energy after monthly settlement will be purchased by the distribution licensee without any payment.
To facilitate adoption, KERC has proposed streamlined approval timelines. For projects up to 150 kW, consumers can begin installation immediately after submitting an application. Distribution companies will have five working days to inspect completed systems and commission the projects. If commissioning is delayed beyond the prescribed period, the responsible utility officer may face a penalty of INR 1,000 per day, while consumers will become eligible for deemed generation benefits.
The draft further mandates advanced metering infrastructure and smart meters for most DSPV projects. All generation and bidirectional meters must comply with Central Electricity Authority regulations and support modern communication technologies. The regulations also prescribe technical standards, hosting capacity limits and safety requirements for connecting distributed solar systems to the grid.
KERC has invited objections, suggestions and comments from stakeholders within 15 days of publication of the draft regulations in the Karnataka Gazette. After reviewing stakeholder feedback, the Commission will finalise the regulations, which are expected to guide the next phase of distributed solar power development in Karnataka.
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