The Jaipur Vidyut Vitran Nigam (JVVNL) has filed a petition before the Rajasthan Electricity Regulatory Commission (RERC) to allow virtual net metering (VNM) and group net metering (GNM) in the state.

The petition, filed on behalf of Ajmer Vidyut Vitran Nigam (AVVNL) and Jodhpur Vidyut Vitran Nigam (JdVVNL), seeks amendments to the RERC’s Grid-Interactive Distributed Renewable Energy Generating Systems (DREGS) Regulations, 2021.

The existing regulations currently cover net metering, net billing, and grid-connected renewable energy systems operating behind the meter, but do not provide for VNM and GNM arrangements.

National Policy Alignment

The Government of India issued operational guidelines for the payment security mechanism and central financial assistance, applicable to the renewable energy service company (RESCO) models and utility-led aggregation models under the PM Surya Ghar: Muft Bijli Yojana.

The RERC DREGS Regulations, 2021, already provide for the RESCO models, but do not currently allow VNM and GNM, which are critical for implementing utility-led aggregator models. Other state electricity regulatory commissions, including those of Delhi, Odisha, Maharashtra, and Assam, have already notified enabling provisions for these mechanisms. The Rajasthan distribution companies (DISCOMs) are seeking to align the state regulations with these national and inter-state practices.

Rationale for Amendments

According to the petitioners, the introduction of VNM and GNM will allow broader participation of both government institutions and domestic consumers in rooftop solar adoption. Rajasthan has over 100,378 government electricity connections with a cumulative sanctioned load of 1.19 GW.

At the same time, government departments have accumulated significant unpaid electricity bills, with outstanding dues amounting to ₹15.05 billion (~$179 million) as of May 31, 2025. This has placed financial stress on the DISCOMs, which are forced to resort to high-cost borrowing to maintain operations.

The Rajasthan government has already directed 100% rooftop solar coverage of state government buildings through an order dated February 1, 2024, with the Rajasthan Renewable Energy Corporation designated as the nodal agency.

Proposed Regulatory Provisions

The DISCOMS have proposed that VNM and GNM eligibility be extended only to domestic category consumers and government connections.

For domestic consumers, the maximum sanctioned load under this mechanism will be capped at 10 kW, while no such cap is proposed for government connections. The maximum capacity of individual renewable energy systems under VNM or GNM will be capped at 1 MW.

All applications from government connections will require a mandatory technical feasibility study. In contrast, domestic consumers with a capacity of up to 10 kW will continue to be exempt from such studies, except in VNM and GNM applications.

The petition proposes that government connections opting for VNM or GNM under RESCO mode must pay 50% of the cross-subsidy and additional surcharge. Additionally, 100% wheeling charges must be levied at the 11 kV level or the respective voltage level, based on the sanctioned load, until low tension-level wheeling charges are defined.

Wheeling Charges and BESS

The petition also incorporates incentives for integrating battery energy storage systems (BESS). A 75% waiver on wheeling charges is requested for systems with at least 5% of solar capacity supported by BESS. For higher storage capacities, an additional 1% waiver was requested for every 1% increase in BESS capacity, up to a maximum of 30%.

Systems with BESS capacities exceeding 30% of solar will be eligible for a complete 100% waiver of wheeling charges. The petitioners contended that the proposal aligns with the Government of India’s advisory dated February 18, 2025, which recommends integrating storage with rooftop solar systems to enhance supply reliability.

The petition further states that wheeling losses will be applied based on the voltage level of energy drawal. For low-tension (LT) consumers, approved distribution losses will be applied until specific LT-level wheeling losses are determined.

This approach follows practices adopted in other states, such as Madhya Pradesh, where voltage-wise losses are applied. In contrast, Maharashtra has exempted VNM and GNM connections till the capacity of rooftop solar reaches 5,000 MW.

Financial Implications

The DISCOMs emphasized that government non-payment of electricity bills has created a financial liability of ₹15.05 billion (~$179 million) as of May 31, 2025. This liability compels them to take high-cost loans, which ultimately increases the tariff burden on all consumer categories.

The solarization of government connections through VNM and GNM will reduce reliance on grid purchases for these consumers, lower their bills, and release the DISCOMs from recurring financial strain. Moreover, the surplus solar power generated by government buildings can help optimize state-level power purchase costs.

The proposed levy of partial surcharges and wheeling charges on government connections is intended to allow recovery of infrastructure costs while still incentivizing adoption of rooftop solar.

Recently, RERC approved JdVVNL’s tariffs ranging from ₹2.68 (~$0.030)/kWh to ₹3.66 (~$0.041)/kWh for solar projects with a cumulative capacity of 488 MW to be set up across Rajasthan under Component – C of the Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM KUSUM) program.

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