APERC Confirms Net Metering Continuity For Older Solar Rooftop Projects

16 Jun 2026 CW Team

It was determined that the capacity restriction in the 2023 regulation does not affect projects that were operational prior to the regulation coming into force. The commission invoked Clause 22, which provides a grandfathering mechanism to preserve the rights and obligations that applied at the time of initial approval. Projects that were under construction with approved feasibility reports were also held to be covered by the earlier framework. Contracts will remain in force until their contractual expiry.

As a consequence, solar rooftop installations ranging from 500 kWp to 1000 kWp will continue to receive net metering or gross metering services under the terms of their original agreements and will not be required to alter metering arrangements mid-contract. The commission clarified that the 500 kWp cap will apply only to new projects seeking approval after the regulation took effect, limiting future eligibility to smaller systems.

The clarification is expected to provide meaningful regulatory and financial relief to developers and consumers who invested under the earlier policy framework, removing ambiguity over billing and eligibility. APERC has communicated its decision to the Eastern Power Distribution Company and circulated the order to the Central and Southern distribution utilities in the state to ensure implementation. Stakeholders will monitor compliance and adjustments as companies align billing with the directive in coming months.

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The Andhra Pradesh Electricity Regulatory Commission (APERC) clarified net metering and billing arrangements for existing solar rooftop photovoltaic systems in the state. The clarification addresses uncertainty for projects with capacities between 500 kilowatt peak (kWp) and 1000 kWp that were commissioned before the adoption of APERC Regulation No. 4 of 2023. The Eastern Power Distribution Company of Andhra Pradesh Limited sought guidance on whether the new eligibility limit would apply to installations approved under earlier rules. The commission examined regulatory provisions and recent filings. It was determined that the capacity restriction in the 2023 regulation does not affect projects that were operational prior to the regulation coming into force. The commission invoked Clause 22, which provides a grandfathering mechanism to preserve the rights and obligations that applied at the time of initial approval. Projects that were under construction with approved feasibility reports were also held to be covered by the earlier framework. Contracts will remain in force until their contractual expiry. As a consequence, solar rooftop installations ranging from 500 kWp to 1000 kWp will continue to receive net metering or gross metering services under the terms of their original agreements and will not be required to alter metering arrangements mid-contract. The commission clarified that the 500 kWp cap will apply only to new projects seeking approval after the regulation took effect, limiting future eligibility to smaller systems. The clarification is expected to provide meaningful regulatory and financial relief to developers and consumers who invested under the earlier policy framework, removing ambiguity over billing and eligibility. APERC has communicated its decision to the Eastern Power Distribution Company and circulated the order to the Central and Southern distribution utilities in the state to ensure implementation. Stakeholders will monitor compliance and adjustments as companies align billing with the directive in coming months.

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