Odisha Removes Upper Limit of 1 MW for Net-Metered Rooftop Solar Projects

Odisha Electricity Regulatory Commission (OERC) has removed the upper cap of 1 MW for rooftop solar projects in the state.

The removal of the upper ceiling was part of the order passed by OERC on net-metering, bi-directional metering, and their connectivity to solar photovoltaic (PV) projects in Odisha.

This order applies to all solar power systems that are connected to the distribution system through an electrical service connection.

The solar power system can be roof-mounted, ground-mounted, or installed on an elevated structure for captive use.


In its order, OERC recognized that distributed solar generation contributes to a significant reduction in transmission and distribution losses as the generated solar power is consumed locally. OERC is committed to creating a regulatory framework that enables the realization of the solar targets with a significant contribution from the electricity consumer segment.

There is an increasing need for new regulations for net and bi-directional metering in the state to increase the number of prosumers, according to OERC.

Key Highlights of OERC order:

  • OERC has raised the cumulative solar energy capacity at distribution transformer level to 75 percent of transformer capacity from the earlier 30 percent.
  • There is no cap on the capacity of solar installation at consumer level if it is within the limit of the connected load.
  • The earlier restriction of 1 MW solar capacity at a single location has been removed.
  • Two meters would have to be installed by the solar power generator. One for measuring the solar generation and the other for the import and export of power measurement.
  • In case of multiple solar generation sources at a single premise, separate solar meters will have to be installed for each of the sources with the facility for the installation of modem along with all the solar meters.
  • Electricity generated from a solar PV project will be capped cumulatively at 90 percent of consumption at the end of the settlement period.
  • The carry-forward of excess energy generation will be allowed from one billing cycle to the next till the end of the financial year.

With this decision, OERC hopes that an enabling environment will be created in the state which would encourage all categories of electricity consumers including government departments, educational institutions, hospitals, industries, commercial establishments, and residential consumers to contribute towards a greener and more sustainable future of Odisha. This would also help the state achieve its solar targets.

According to Mercom India Solar Project Tracker, Odisha has an installed solar capacity of 89 MW to date and a project pipeline of 284 MW .

Recently, SunSource Energy Private Limited, an Engineering Procurement and Construction (EPC) services provider, announced that it has raised capital from Neev Fund for the development of solar projects across nine states, including Odisha, which have low levels of capital investments.

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