Rajasthan has formally introduced Virtual Net Metering (VNM) and Group Net Metering (GNM) through the RERC Grid Interactive Distributed Renewable Energy Generating Systems (Third Amendment) Regulations, 2025, opening a new phase for shared and off-site solar in the state.
What RERC has notified
- RERC’s Third Amendment Regulations, 2025, add VNM and GNM alongside existing net metering and net billing, peer-to-peer trading and plug-and-play solar within the state’s distributed renewable framework.
- Under these regulations, an eligible consumer can set up a distributed renewable project larger than 1 kW and up to 1 MW under virtual or group net metering, with projects above 1 MW shifting to the state’s tariff and Green Energy Open Access framework.
- The amendment applies across consumer categories, including domestic, commercial, industrial and government consumers, aligning with Rajasthan’s Integrated Clean Energy Policy 2024 and India’s net-zero 2070 pathway
How Virtual & Group Net Metering works
- Virtual net metering allows energy from a remotely located renewable plant (or BESS charged from it) to be exported through a renewable energy (gross) meter and then proportionately credited to multiple participating consumer connections within the same DISCOM area, as per a sharing agreement filed with the utility.
- Group net metering allows a consumer to install a renewable system at one “parent” connection and adjust surplus exported energy against multiple other connections of the same consumer, in a priority order declared annually.
- For VNM, credits are apportioned in the monthly bills of each participating consumer in line with an MoU, which can be revised once at the beginning of each financial year; for GNM, surplus at the parent connection is sequentially adjusted against listed beneficiary connections before any remaining surplus is purchased by the DISCOM.
Capacity limits, eligibility and timelines
- The total capacity of a VNM or GNM system cannot exceed 100% of the cumulative sanctioned load/contract demand of all participating connections, while each individual connection can go up to its own sanctioned load/contract demand.
- The individual project size under VNM/GNM must be above 1 kW and not exceed 1 MW; consumers with contract demand from 100 kW to 1 MW can opt either for VNM/GNM or Green Energy Open Access.
- For domestic consumers up to 10 kW under net, virtual or group net metering, applications complete in all respects enjoy deemed technical feasibility without a study, while other cases must receive feasibility within 15 days (existing connections) or 30 days (new connections), after which connectivity must be granted within 30 days.
Commercial treatment, charge waivers and BESS incentives
- For both VNM and GNM, if exported/allocated energy exceeds imports in a billing period, the surplus is purchased by the DISCOM as per Regulation 12.6; if imports exceed exports/allocations, billing follows the standard netting provisions.
- Domestic consumers using self-owned or RESCO-owned systems under VNM/GNM are exempted from banking, transmission, wheeling charges and losses, cross-subsidy surcharge and additional surcharge on the quantum generated.
- For non-domestic self-owned projects, charge exemptions differ depending on whether the plant is on the consumer’s premises or at another location, with full waivers on several charges and wheeling charges/losses applied at equivalent voltage levels when off-site.
- For non-domestic RESCO-owned projects, major network charges are waived but cross-subsidy and additional surcharge are levied at 50% of normal OA rates (or a notified per-unit rate where not determined), while government connections under VNM/GNM are fully exempt from these surcharges.
- To promote storage, projects under VNM/GNM with at least 5% BESS capacity receive a 75% waiver of wheeling charges, which scales up by an additional 1% waiver for every 1% increment in storage capacity up to 30%, with 100% wheeling charge exemption beyond 30% storage sizing.
Consumer journey and implementation on ground
- Distribution licensees must annually publish distribution transformer–level headroom for connecting systems under net billing, net metering, GNM and VNM, ensuring network safety and transparency for applicants.
- Domestic consumers installing rooftop plants under net, virtual or group net metering enjoy a waiver of application fee, security deposit and meter testing charges until the state achieves a target of five lakh rooftop solar houses (or another target set by the government).
- Rajasthan DISCOMs have already issued operating guidelines and formats for VNM/GNM applications, connection agreements and beneficiary undertakings, signalling that the framework is now ready for practical deployment across cities and towns.
Energy Accounting and Settlement
For Group Net Metering
- Surplus energy is first adjusted at the host connection, then to other service connections as per a priority list submitted by the consumer.
- Priority can be revised once per financial year.
- Any unadjusted surplus is purchased by the Discom at year-end.
For Virtual Net Metering
- Credits are distributed among participating consumers based on the mutually agreed ratio in a stamped MoU.
- The ratio can be modified once per year with prior notice.
- Commercial arrangements between participants are purely private; Discoms have no role in financial aspects.
- Excess energy beyond usage is purchased by the Discom as per existing norms.
Both models also accommodate Time-of-Day (ToD) adjustments for more accurate crediting during different tariff periods
How this shapes Rajasthan’s solar future
- By decoupling generation location from consumption, VNM and GNM unlock solar for tenants, high-rise apartments, MSMEs and institutions that lack adequate shadow-free roof space, helping democratise access to clean energy in Rajasthan.
- The framework enables new business models—such as RESCOs, utility-led aggregators and campus/cluster-based solar parks—while also supporting EV charging, C&I decarbonisation and public sector savings through flexible credit allocation.
- With structured charge waivers, clear capacity norms, defined timelines and incentives for battery pairing, the state has positioned itself as an early leader in advanced distributed solar architectures, complementing utility-scale solar in the Thar region.
Smart Additions for the Future
- Plug-and-Play Solar Systems: Consumers will soon be able to connect small solar systems instantly under simplified “plug-and-play” provisions.
- Blockchain-based Peer-to-Peer (P2P) Trading: The Rajasthan Virtual Net Metering Regulation has paved the way for blockchain-enabled P2P trading, empowering prosumers to trade solar energy directly with each other.
Conclusion
With these amendments, Rajasthan cements its position as a national leader in solar innovation and regulatory progress. The introduction of Virtual and Group Net Metering, coupled with strong incentives, flexibility, and future-forward digital models, marks a new era for distributed renewable energy in the State.
Rajasthan has not just opened doors for shared solar — it has built the entire pathway for inclusive, scalable, and smart energy systems that can transform how power is generated, shared, and consumed.