DERC Drafts Changes to Expand Net Metering Access
ECONOMY & POLICY

DERC Drafts Changes to Expand Net Metering Access

The Delhi Electricity Regulatory Commission (DERC) has released draft amendments to the Group Net Metering and Virtual Net Metering Guidelines, 2019, proposing a series of changes to widen access and reduce infrastructure barriers for renewable energy consumers across the National Capital Territory of Delhi.

Titled the DERC (Group Net Metering and Virtual Net Metering for Renewable Energy) (Seventh Amendment) Guidelines, 2025, the draft has been notified under the provisions of the Electricity Act, 2003, along with relevant DERC regulations and guidelines. The amendments will come into force from the date they are uploaded on the DERC website and will remain applicable until further revisions are issued.

One of the key proposals is the expansion of the Virtual Net Metering framework to cover all electricity consumers in Delhi, including those with single-point supply connections. This is expected to significantly broaden participation in renewable energy, particularly for consumers who are unable to install rooftop solar systems at their premises.

The draft guidelines also allow consumers participating under Virtual Net Metering arrangements to modify their electricity credit-sharing ratios or add new participating service connections up to twice in a financial year, subject to a two-month advance notice and the agreed procurement ratio.

DERC has further proposed a change in energy accounting under Virtual Net Metering, under which electricity generation credits will be treated as having occurred during the normal time block. This replaces the earlier provision that accounted for such generation during off-peak hours.

Another major amendment shifts responsibility for service line-cum-development works and network augmentation costs for Virtual and Group Net Metering projects to distribution licensees. These costs will be allowed as a pass-through in the Aggregate Revenue Requirement. However, the waiver will apply only to networks operating at 11 kV and below and will be capped at cumulative capacities of 110 MW for BRPL, 100 MW for TPDDL, 30 MW for BYPL and 10 MW for NDMC.

The draft also mandates distribution companies to submit quarterly progress reports on Net Metering, Group Net Metering and Virtual Net Metering projects to the Commission and the Energy Efficiency and Renewable Management division of the Government of NCT of Delhi.

The draft amendment has been opened for stakeholder consultation and is expected to play a significant role in accelerating the deployment of distributed renewable energy in the capital.

The Delhi Electricity Regulatory Commission (DERC) has released draft amendments to the Group Net Metering and Virtual Net Metering Guidelines, 2019, proposing a series of changes to widen access and reduce infrastructure barriers for renewable energy consumers across the National Capital Territory of Delhi. Titled the DERC (Group Net Metering and Virtual Net Metering for Renewable Energy) (Seventh Amendment) Guidelines, 2025, the draft has been notified under the provisions of the Electricity Act, 2003, along with relevant DERC regulations and guidelines. The amendments will come into force from the date they are uploaded on the DERC website and will remain applicable until further revisions are issued. One of the key proposals is the expansion of the Virtual Net Metering framework to cover all electricity consumers in Delhi, including those with single-point supply connections. This is expected to significantly broaden participation in renewable energy, particularly for consumers who are unable to install rooftop solar systems at their premises. The draft guidelines also allow consumers participating under Virtual Net Metering arrangements to modify their electricity credit-sharing ratios or add new participating service connections up to twice in a financial year, subject to a two-month advance notice and the agreed procurement ratio. DERC has further proposed a change in energy accounting under Virtual Net Metering, under which electricity generation credits will be treated as having occurred during the normal time block. This replaces the earlier provision that accounted for such generation during off-peak hours. Another major amendment shifts responsibility for service line-cum-development works and network augmentation costs for Virtual and Group Net Metering projects to distribution licensees. These costs will be allowed as a pass-through in the Aggregate Revenue Requirement. However, the waiver will apply only to networks operating at 11 kV and below and will be capped at cumulative capacities of 110 MW for BRPL, 100 MW for TPDDL, 30 MW for BYPL and 10 MW for NDMC. The draft also mandates distribution companies to submit quarterly progress reports on Net Metering, Group Net Metering and Virtual Net Metering projects to the Commission and the Energy Efficiency and Renewable Management division of the Government of NCT of Delhi. The draft amendment has been opened for stakeholder consultation and is expected to play a significant role in accelerating the deployment of distributed renewable energy in the capital.

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