Market & Policy

Gujarat Net Metering Draft 2026: What the New Rooftop Rules Change

Shashank·Founder·October 24, 2026·10 min read

Where the Draft Stands

GERC's draft Grid Interactive Distributed Renewable Energy Sources Regulations, 2026 is signed May 15, 2026, and the Commission held a public hearing on June 18. If notified, it repeals the 2016 net metering regulations and their amendments, and it applies to applications received after notification.

No final version had been reported by October 24. GERC has notified other regulations in the meantime, including the Grid Code on October 7 and the battery storage rules on October 16, and it posted draft changes to the Supply Code and the Standards of Performance on October 17. In August GERC turned down a petition to add virtual net metering to the 2016 rules, saying this draft already covers it.

That makes it the live question for any Gujarat rooftop proposal: which of these terms will survive.

Five Ways to Connect

The draft lets any consumer category choose from five arrangements.

Option	Size range	How it works
Net metering	1 kW to 1 MW	Exports offset imports in the same billing period
Net billing	1 kW to 1 MW	Imports at the retail tariff, exports credited at a generic tariff
Gross metering	1 kW to 4 MW	All generation sold to the DISCOM at a generic tariff
Group net metering	6 kW to 1 MW	One system's exports shared across several connections of the same customer
Virtual net metering	100 kW to 4 MW	A system elsewhere shares credits among customers of the same category

The draft gives the gross metering minimum two ways, 6 kW in one clause and 1 kW in the size table, so check the final text before quoting it.

Group net metering needs connections in the same name and tariff category under the same DISCOM. Virtual net metering needs participants in the same category too. A customer with arrears cannot join any option unless the arrears are under dispute with a stay. Third-party ownership is allowed, and a RESCO signs its own agreement with the customer. The DISCOM is not a party to that contract.

The 30% Offset Cap for Non-Residential Customers

This is the clause that changes proposals. Under draft net metering, a non-residential prosumer can offset exports against only up to 30% of the total energy it draws from the DISCOM in the billing period, and it pays banking charges set under the green energy open access rules. Exports beyond that limit are not eligible for adjustment and lapse.

Residential customers are treated differently. They offset in full, with no banking charge, and any surplus left over is bought by the DISCOM at ₹2.25 a unit or at whatever rate the Commission sets.

The other options work differently:

Group and virtual net metering: energy is allocated by an agreed share and matched in 15-minute blocks. Non-residential users can use banked energy up to 30% of what they draw, within the same billing cycle. Residential participants offset in full and get ₹2.25 for any surplus.
Net billing: imports are billed at the retail tariff and exports are credited at the generic tariff for the year the system is commissioned. That rate stays fixed for the life of the system.
Gross metering: every unit generated is paid at the generic tariff, and the customer pays retail for everything it consumes.

If you quote a commercial net metering system in Gujarat today and savings assume full offset, rerun the numbers on a 30% cap before the draft is finalised.

Virtual Net Metering: The Fine Print

Virtual net metering to 4 MW is the headline, but the draft attaches heavy conditions. The system must connect at 11 kV or 22 kV, with its delivery point at a GETCO 66 kV substation, through a dedicated line the owner builds at its own cost. Participants pay wheeling charges, wheeling losses and banking charges, and a customer on virtual net metering cannot also use green energy open access.

For residential participants supplied from a RESCO system, cross subsidy and additional surcharges are waived up to 2 kW per household. Non-residential participants pay them unless the system qualifies as captive, and they can claim a 25% concession if they let the DISCOM use the renewable attribute.

A Battery Rule for Larger Customers

A customer with a contract demand above 100 kW can install more capacity than that demand only if it adds storage. The draft requires a battery that can run two-hour charge and discharge cycles for at least 50% of the capacity above contract demand. It applies to net metering, net billing and group net metering, and to virtual net metering except for residential participants.

This lines up with the battery rules GERC notified on October 16. Our guide to the Gujarat BESS regulations covers registration with GEDA and the DISCOM's prior permission for behind-the-meter batteries.

Timelines, Fees and Penalties

The draft sets a day-count for each step, from application to commissioning certificate.

Step	Time allowed
GEDA registration certificate	5 days
Chief Electrical Inspector approval of the diagrams	10 days
DISCOM head office to field office, then field feasibility report	3 days, then 10 days
In-principle consent after the report	2 days
Agreement and letter to start work	5 days after the agreement
System strengthening, where needed	15 days
Project completion by the applicant	6 months
Meter installation after documents	5 days
GEDA commissioning certificate	3 days

Applications up to 10 kW that are complete are accepted automatically, with no feasibility study. If the DISCOM delays without good reason, it owes the consumer at least ₹500 for each day of default. Under PM Surya Ghar no separate written connectivity agreement is needed, because the agreement starts on the date of commissioning and the DISCOM must tell the applicant that date and the surplus rate.

Fees are set by size. Connectivity charges are ₹1,500 for 1 to 6 kW, ₹10,000 for above 6 kW to 100 kW, and ₹50,000 above that. For network strengthening, the DISCOM carries the cost up to 6 kW. Above that, for LT systems up to 100 kW, state DISCOMs and Torrent Power recover 25% of their per-kW rate for a new connection. For HT systems up to 1,000 kW, state DISCOMs recover 25% of their per-kVA rate. Other licensees pass the cost to the consumer.

Adding capacity without approval after commissioning counts as unauthorised use. The penalty is twice the energy charge for three months or the actual period, whichever is shorter.

What EPCs Can Do Before It Is Final

Rerun C&I net metering savings on the 30% cap, and keep a version that assumes full offset so you can see the gap. Do not promise virtual net metering to a client until the evacuation line cost is priced in. For customers above 100 kW that want to oversize, price the battery requirement from the start. And plan for monitoring: the draft requires meters with an AMI-ready communication port, SIM-based remote monitoring for systems below 1 MW and a remote terminal unit above 1 MW.

DISCOMs would have three months from notification to get their procedures approved and launch a web portal for applications.

Where Design Software Fits

Each metering option changes what a proposal has to show: export share, banking limit, battery size and the evacuation line. Design software like Reslink lets you change the system size or export assumption once and carry it through the layout, bill of materials and single line diagram, so a re-quote after the final rules does not mean redrawing the system. It does not decide which option the DISCOM will approve.

See the full workflow → Book a demo

Frequently Asked Questions

Q1. Are Gujarat's new net metering rules final?

No. The draft is signed May 15, 2026, and the Commission held a hearing on June 18. No final version had been reported by October 24, 2026.

Q2. What is the net metering limit in the Gujarat draft?

1 kW to 1 MW for net metering and net billing. Gross metering and virtual net metering go up to 4 MW.

Q3. Will commercial customers lose full offset under the draft?

As drafted, a non-residential customer can offset exports against only up to 30% of the energy it draws in the billing period, with banking charges. The rest lapses. Homes get full offset.

Q4. What will Gujarat pay for surplus from home systems?

The draft has the DISCOM buy surplus left after full offset at ₹2.25 a unit, or at the rate the Commission sets.

Q5. Do I need a battery for a large rooftop system?

Only if the customer's contract demand is above 100 kW and the system is larger than that demand. The excess capacity then needs a battery for at least 50% of it, with two-hour cycles.

Q6. Are small systems approved automatically?

Systems up to 10 kW with a complete application are accepted without a feasibility study. A DISCOM that delays without good reason owes at least ₹500 a day.

Final takeaway

Gujarat's draft widens the options for rooftop and distributed solar, but it caps non-residential net metering offsets at 30% of the energy drawn. Until GERC notifies a final text, treat the cap, the 4 MW virtual net metering conditions and the battery rule as proposals, and keep two versions of every commercial quote.

Sources

Gujarat Electricity Regulatory Commission, Draft Grid Interactive Distributed Renewable Energy Sources Regulations, 2026 (signed May 15, 2026), published on GERC's website
Saur Energy, "Gujarat Proposes Virtual Net Metering Up to 4 MW, Net Metering Eligibility Up to 1 MW" (2026)
Saur Energy, "Virtual Net Metering Gets a Fresh Route as Gujarat Regulator Rejects Parallel Pleas" (August 2026), for the June 18 hearing
Gujarat Government Gazette Extraordinary, Extra No. 551 (October 16, 2026), for the battery storage regulations

This guide describes a draft as of October 24, 2026. Provisions can change before notification, so check GERC's website for the final text before quoting any figure.

#Gujarat net metering draft 2026#GERC DRES regulations#Gujarat rooftop solar rules#virtual net metering Gujarat#net billing Gujarat

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