Power Ministry Urges States to Scrap Separate Net-Metering Agreements

The ministry also urged states to waive various charges for rooftop installations

October 6, 2025

thumbnail

Follow Mercom India on WhatsApp for exclusive updates on clean energy news and insights


The Ministry of Power has written to all states and union territories, urging them to scrap separate net-metering contracts for residential rooftop consumers and adopt a digital agreement as part of the online application.

It cited sub-rule 10 of rule 4 of the Electricity (Rights of Consumers) Rules, 2020, which provides that if an agreement is required between a distribution licensee and a consumer, it should become part of the application form and not require a separate net-metering agreement.

The ministry noted that Gujarat, Rajasthan, Karnataka, Jharkhand, Haryana, and Puducherry already use a digital form for the net-metering agreement, which is part of the online application in the national portal for rooftop solar. For applications outside the PM Surya Ghar, the same approach may be adopted by integrating the agreement into the online application process for rooftop solar installations.

It also advised utilities to waive various charges for rooftop solar installations, including application and registration fees, net-meter testing fees, and commissioning fees. Instead of collecting these from consumers, utilities must leverage incentives available under the program from the Ministry of New and Renewable Energy. It noted that 17 states and union territories have already waived these charges.

The Surya Ghar program aims to install rooftop solar systems on 10 million households for a total capacity of 30 GW by 2027. Approximately two million rooftop solar systems have been installed under the Surya Ghar program so far. Approximately half of the households received zero bills, and many also earned money by selling excess electricity.

India added 1,618 MW of rooftop solar capacity in the second quarter (Q2) of 2025, according to Mercom India’s Q2 2025 India Rooftop Solar Market Report. The installations grew 121% year-over-year (YoY).

In Q2 2025, rooftop solar capacity additions were led by the residential segment, contributing over 74% with most of this capacity driven by the rooftop solar systems installed under the PM Surya Ghar.

RELATED POSTS

Get the most relevant India solar and clean energy news.

RECENT POSTS