Market & Policy

Odisha Rooftop Solar Draft 2026: The Battery Rule Above 10 kW

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

Where the Draft Stands

The Odisha Electricity Regulatory Commission pre-published its Grid Interactive Distributed Renewable Energy Sources Regulations, 2026 on August 3 and took comments until August 31. If notified, they would replace the Commission's 2016 net metering order and its amendments.

This draft is a second attempt. On April 10 OERC had issued a broader draft that bundled renewable consumption targets with distributed solar. After comments, it withdrew that one, saying the two subjects are separate and need their own rules, and issued this solar-only version. No final version had been reported by October 24.

The Battery Rule Above 10 kW

This is the provision that changes the quote. Anyone who owns or plans a distributed system of 10 kW and above must install a hybrid or grid-forming inverter and a battery along with it. The draft sets the minimum battery by size band, with two hours of storage. The text says "10 kW and above" but the table below starts "above 10 kW", so a system of exactly 10 kW is unclear:

System size	Minimum battery, as % of installed capacity
Above 10 kW up to 100 kW	10%
Above 100 kW up to 500 kW	20%
Above 500 kW up to 10 MW	30%

The table reads as a battery power rating of that percentage of the solar capacity, with two hours of duration. On that reading, a 100 kW system needs a battery of about 10 kW and 20 kWh, and a 400 kW system about 80 kW and 160 kWh. The draft also says prosumer batteries are to charge during solar hours and, preferably, discharge during peak hours.

The threshold moved between drafts. The April version applied the battery requirement from 5 kW. The August version raises it to 10 kW, so the common 5 kW to 10 kW home system is out of scope for now.

Who Can Use Which Option

The draft allows six ways to connect, but eligibility is narrower than the list suggests.

Option	Who	Size
Net metering	Homes, government schools and hostels, government health facilities, local body buildings, farms	1 kW to 500 kW, or the sanctioned load if lower
Net billing	All categories	1 kW to 500 kW, or the sanctioned load if lower
Gross metering	All categories	1 kW to 10 MW
Behind the meter	All categories	1 kW up to the sanctioned load, within 10 MW
Group net metering	Net metering eligible users with several connections	5 kW to the combined load or 500 kW
Virtual net metering	Net metering eligible users, two or more consumers	5 kW to the combined load or 500 kW

So a factory or shop would not get net metering under this draft. It would choose net billing, gross metering or behind the meter. A customer can switch between options once a year, up to three times in the system's life, and anyone with arrears is barred unless the arrears are under dispute and the disputed amount is deposited.

How Surplus Is Paid

Under net metering, extra generation carries forward from month to month within the April to March year. Whatever is left at year end is paid at a feed-in tariff the Commission sets for net metering, by bank transfer, and the balance resets to zero each April. Net billing and gross metering pay exports at their own feed-in tariffs. For gross metering, power supplied at peak hours from a battery earns 125% of the tariff.

Group net metering has a catch. The connection where the system sits must use at least 20% of what the system generates, and the units behind that 20% that it does not use lapse. Virtual net metering needs a lead consumer who signs for the group and a share ratio that can be reset once a year, with three months' notice.

Behind the Meter: A Separate Route

Behind the meter is for self-consumption only. The customer must tell the DISCOM before connecting and fit a reverse power relay so that nothing flows back to the grid. Any energy that does flow is treated as inadvertent and is neither paid for nor settled.

Connecting without telling the DISCOM carries a risk. The DISCOM can disconnect after 48 hours' notice, and the customer can avoid that by signing a contract and paying a one-time ₹1,000 per kW of installed capacity.

Charges, Hosting Capacity and RESCOs

Systems on the customer's own premises under net metering, net billing, gross metering and behind the meter are exempt from transmission and wheeling charges, cross subsidy surcharge and additional surcharge. For group and virtual net metering, no charges apply if the system and participants sit on the same substation or feeder. Otherwise the open access charges and losses apply. The Commission may also notify grid support or parallel operation charges later.

Hosting capacity is capped. All distributed systems on a distribution transformer together cannot exceed 90% of its capacity, and no single phase can carry more than 30%. A single-phase customer on a full phase gets moved to another phase at the DISCOM's cost where space exists.

Third-party ownership is allowed up to 500 kW. The customer signs a billing agreement with the RESCO and gives the DISCOM a copy before commissioning, and a RESCO dispute cannot lead the DISCOM to disconnect the customer. A DISCOM can act as a RESCO too, as a separate business.

Odisha and Gujarat Side by Side

Gujarat's draft rooftop rules, which we cover in our guide to the Gujarat net metering draft, take a different path on the same questions. Gujarat asks for a battery only when a customer above 100 kW installs more than its contract demand. Odisha asks for one on every system above 10 kW. Gujarat opens net metering to all categories up to 1 MW but caps offsets for non-residential users at 30% of energy drawn. Odisha keeps net metering for specific groups up to 500 kW and pays year-end surplus at a feed-in tariff.

What EPCs Can Do Before It Is Final

Price a battery into every Odisha quote above 10 kW as an option now, and keep a version without it so you can see the gap. Check each commercial client's category before offering net metering, since this draft would move them to net billing, gross metering or behind the meter. For multi-site clients, test group net metering against the 20% self-use rule.

DISCOMs would have one month from notification to submit guidelines for approval and three months to open a web portal and update billing.

Where Design Software Fits

When battery size depends on system size, every resize changes the bill of materials. Design software like Reslink regenerates the layout, bill of materials and single line diagram when the system changes, so a quote stays in step with the design. It does not decide what OERC finalises.

See the full workflow → Book a demo

Frequently Asked Questions

Q1. Are Odisha's new rooftop solar rules final?

No. OERC pre-published the draft on August 3, 2026, and took comments until August 31. No final version had been reported by October 24, 2026.

Q2. Do all solar systems in Odisha need a battery under the draft?

Systems above 10 kW would. Smaller systems are not covered. The minimum battery is 10%, 20% or 30% of installed capacity by size band, with two hours of storage.

Q3. Can a commercial customer use net metering in Odisha?

Not under the draft. Net metering is limited to homes, farms, government schools, hostels and health facilities, and local body buildings. Commercial users would use net billing, gross metering or behind the meter.

Q4. How is surplus solar power paid for?

Under net metering, leftover units at the end of the April to March year are paid at a feed-in tariff the Commission sets, credited to the customer's bank account. The balance then resets.

Q5. What is behind-the-meter solar?

A system used only for the customer's own load, with a relay that stops any flow to the grid. The customer must tell the DISCOM before connecting.

Q6. What happens if I connect behind the meter without telling the DISCOM?

The DISCOM can disconnect after 48 hours' notice. You can avoid that by signing a contract and paying a one-time ₹1,000 per kW of installed capacity.

Final takeaway

Odisha's draft puts a battery on every rooftop system above 10 kW and narrows net metering to a short list of consumers. Until OERC notifies a final text, treat the battery bands, the eligibility list and the year-end tariff as proposals, and keep a with-battery and without-battery version of every quote.

Sources

Odisha Electricity Regulatory Commission, draft Grid Interactive Distributed Renewable Energy Sources Regulations, 2026, with the Statement of Reasons and public notice of August 3, 2026, published on OERC's website
Odisha Electricity Regulatory Commission, draft Renewable Consumption Obligation, Distributed Renewable Energy Sources and Renewable Energy Linked Concepts Regulations, 2026 (April 10, 2026), withdrawn
Energetica India, "OERC Releases Draft Grid Interactive Distributed Renewable Energy Regulations 2026 for Odisha" (2026)
SolarQuarter, "OERC Proposes New 2026 Regulations To Boost Distributed Renewable Energy Adoption In Odisha" (August 5, 2026)

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

#Odisha rooftop solar draft 2026#OERC distributed renewable energy regulations#Odisha net metering#mandatory battery rooftop solar#Odisha behind the meter solar

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