Delhi Solar Net Metering Guide for Industry (2026)

Direct Answer

Delhi industrial consumers can install rooftop solar systems up to 500 kW under net metering, governed by the Delhi Electricity Regulatory Commission (DERC) Net Metering for Renewable Energy Regulations, 2014 (amended through 2026). The state's three DISCOMs — BSES Rajdhani Power Limited (BRPL), BSES Yamuna Power Limited (BYPL), and Tata Power Delhi Distribution Limited (TPDDL) — all follow the same DERC framework with a unified tariff schedule. Industrial consumers pay approximately ₹7.00 to ₹8.50 per kWh for grid power (base energy charges), with effective costs reaching ₹12.50 to ₹15.60 per kWh including PPAC and surcharges. Excess solar export is settled annually at the Average Power Purchase Cost (APPC) rate of approximately ₹3.00 to ₹4.00 per unit. The application process was significantly streamlined in July 2026, with a new two-stage online process that mandates connectivity within 25 days for systems above 10 kW and 10 days for systems up to 10 kW. The bottom line is that Delhi's high industrial tariffs, combined with the newly simplified net metering process, make rooftop solar one of the most effective cost-reduction strategies for Delhi factories in 2026.

Key Takeaways

• Net metering capacity cap: 500 kW per individual connection for all consumer categories
• Three DISCOMs serve Delhi: BRPL (South and West), BYPL (East and Central), TPDDL (North and Northwest)
• Industrial base tariff: approximately ₹7.00 to ₹8.50 per kWh (energy charges only)
• Effective tariff including PPAC and surcharges: ₹12.50 to ₹15.60 per kWh
• Settlement period: annual (April to March), with monthly credit carry-forward
• Excess export rate: approximately ₹3.00 to ₹4.00 per unit at APPC rate
• New two-stage application process (July 2026): Stage I feasibility plus Stage II integrated verification
• Connectivity timeline: 25 days for systems above 10 kW, 10 days for systems up to 10 kW
• Feasibility deemed approved if DISCOM does not respond within 15 days
• Group Net Metering (GNM) and Virtual Net Metering (VNM) available since 2019
• PPAC surcharge in 2026: BRPL 17.94 percent, BYPL 17.43 percent, TPDDL 16.00 percent

Verified Snapshot: Delhi Net Metering for Industry

Regulatory status last checked: 21 July 2026

Capacity Limits and System Sizing

The 500 kW Net Metering Cap

Under DERC Net Metering for Renewable Energy Regulations, 2014 (as amended), the maximum net-metered solar system size per individual consumer connection in Delhi is 500 kW. This cap applies to all consumer categories — domestic, non-domestic, commercial, industrial (both LT and HT), and government.

The approved capacity is additionally constrained by two factors:

• The system must not exceed the consumer's sanctioned load (contract demand)
• The system must not exceed 90 percent of the available transformer capacity at the consumer's distribution transformer

Systems above 500 kW fall outside the net metering framework and must use a bilateral Power Purchase Agreement (PPA) or open access arrangement with DERC approval. No expansion to 1 MW had been formally adopted in Delhi as of June 2026, unlike states such as Rajasthan and Karnataka which allow 1 MW under net metering.

This means Delhi factories with large roof areas and high connected loads may need to consider open access solar or group captive solar for capacities above 500 kW. For a state-by-state comparison of net metering caps, see our net metering policy India guide.

Category-Wise System Size Limits

The minimum system capacity for net metering in Delhi is 1 kW peak. The capacity can be up to the sanctioned load or can be enhanced if the consumer pays the applicable SLD (Service Line Development) charges as per the DERC Supply Code.

Transformer Capacity Constraints

The system capacity is subject to:

• Feasibility of interconnection with the grid
• Available capacity of the service line connection
• Sanctioned load of the consumer

To summarize, pre-check transformer hosting capacity with your DISCOM before sizing systems approaching the 500 kW cap, particularly in densely built industrial areas of Delhi.

DISCOM Coverage Areas

Delhi distributes power through three DISCOMs, all following the same DERC-approved tariff structure but with different geographic coverage areas and application portals.

All three DISCOMs follow the same DERC tariff order and net metering regulations, but each has its own online portal for net metering applications. Each DISCOM requires drawings in its specific format, though all follow DERC technical standards. To identify your DISCOM, check your electricity bill or visit the respective DISCOM website.

The bottom line is that while the regulatory framework is uniform, the practical application experience varies by DISCOM — BRPL has the largest rooftop solar program, BYPL had over 1,208 net metering connections as of March 2024, and TPDDL has been a frontrunner in distribution reforms.

FY2026-27 Industrial Tariffs in Delhi

Base Energy Charges

DERC issues a single unified tariff schedule across all three Delhi DISCOMs. Delhi's last full tariff revision was in 2014; the schedule was carried into FY 2021-22 and remains the base schedule, with adjustments made through PPAC (Power Purchase Adjustment Cost) surcharges and FPPAS (Fuel and Power Purchase Adjustment Surcharge) orders.

Based on available data from DERC tariff orders and analysis, approximate industrial energy charges in Delhi are as follows:

Note: These are base energy charges from the prevailing tariff schedule. Actual bills include PPAC, fixed charges, electricity tax (5 percent), and other levies. Exact rates should be verified with the latest DERC tariff order and your DISCOM bill.

Demand Charges

PPAC and Effective Tariff

The Power Purchase Adjustment Cost (PPAC) is the single largest variable component in Delhi's industrial electricity bills. In June 2026, DERC switched from quarterly to monthly PPAC revisions and sanctioned the highest rates in years:

The effective tariff including base energy charges, fixed demand charges, PPAC, and other surcharges for commercial and industrial consumers in Delhi in 2026 is approximately:

This means Delhi has among the highest effective industrial electricity costs in India. In short, every unit of solar generation that displaces grid power at ₹12.50 to ₹15.60 per unit creates substantial savings, making Delhi one of the most attractive markets for industrial rooftop solar despite the 500 kW net metering cap.

For consumers evaluating the financial case for solar, the high Delhi tariff makes solar IRR calculation particularly compelling, with payback periods often under 4 years. See also our guide on solar panel ROI and payback period.

Settlement Rules and Credit Mechanics

Annual Settlement Period

Delhi's net metering settlement period runs annually from April to March, aligned with the financial year. This is confirmed in both the DERC Net Metering Regulations, 2014 and the TPDDL Net Metering Connection Agreement, which defines the Settlement Period as "the period within which surplus energy generated in solar plant will be adjusted to subsequent bill by TPDDL."

Monthly Credit Carry-Forward

The DISCOM dispatches the bill for net metering for each billing cycle and separately shows:

• Energy units exported (solar generation sent to grid)
• Energy units imported (grid power consumed)
• Net energy units billed
• Energy units carried forward, if any

If during any billing period the export of units exceeds the import of units, such surplus units are carried forward to the next billing period as energy credit. These credits are adjusted against energy consumed in subsequent billing periods within the settlement period.

The DISCOM raises the invoice for net electricity consumption only after adjusting the unadjusted energy credits from previous billing cycles. Surplus energy measured in kWh is used to offset consumption measured in kWh only — it cannot be used to compensate fixed charges, demand charges, government levies, or other fees.

Year-End Settlement at APPC

At the end of the financial year, any net energy credits that remain unadjusted are paid to the consumer at the Average Power Purchase Cost (APPC) rate of the respective DISCOM for that year, on a provisional basis. After the Commission's true-up of the power purchase cost, any adjustment between the provisional rate and the trued-up rate is credited or debited to the consumer's account in the next billing cycle.

The APPC rate in Delhi is approximately ₹3.00 to ₹4.00 per unit. This is significantly lower than the effective industrial tariff of ₹12.50 to ₹15.60 per unit.

The bottom line is that industrial consumers should maximise self-consumption during daytime hours to displace grid power at the full retail tariff, rather than exporting surplus to the grid. Every unit self-consumed saves ₹12.50 to ₹15.60, while every unit exported only earns ₹3.00 to ₹4.00 at year-end.

ToD Interaction with Settlement

For consumers on Time-of-Day (ToD) tariff, electricity consumption in any time block (peak hours, off-peak hours) is first compensated with electricity generation in the same time block within the same billing cycle. Any surplus generation over consumption in another time block is accounted as if the surplus occurred during the off-peak time block for ToD consumers, and during the normal time block for non-ToD consumers.

For carry-forward purposes, energy units are moderated as per the relevant rebate or surcharge percentage of the ToD tariff applicable for that year.

The New Two-Stage Application Process (July 2026)

Major Regulatory Reform

On 16 July 2026, DERC notified the Delhi Electricity Regulatory Commission (Net Metering for Renewable Energy) (Second Amendment) Guidelines, 2026, which came into effect immediately. This amendment replaced the earlier three-stage application process (feasibility analysis, registration, and connection agreement) with a simplified two-stage mechanism.

Two Application Routes

The new guidelines provide two application routes:

• Route A: Domestic consumers under PM Surya Ghar Muft Bijli Yojana apply through the PM Surya Ghar National Portal
• Route B: All other consumers, including non-domestic, commercial, and industrial consumers, apply through the designated online portal of the Distribution Licensee or the Delhi State Portal

The entire process is now end-to-end online, with no requirement for physical or offline forms.

Stage I: Technical Feasibility Analysis

The DISCOM must complete the technical feasibility analysis within 15 days from the date of receipt of a complete application. Key provisions:

• No technical feasibility analysis is required for Renewable Energy Systems up to 10 kW on the same supply type — feasibility is deemed granted automatically
• If the DISCOM fails to communicate the feasibility outcome within 15 days, the feasibility is deemed approved
• For industrial systems above 10 kW, the 15-day feasibility timeline applies

Stage II: Integrated Document Verification, Inspection, and Net Meter Installation

After installation of the solar system and submission of the registration form and documents through the online portal, the DISCOM must complete Stage II as a single integrated stage within 10 days from the date of electronic acknowledgement. During Stage II, the DISCOM concurrently:

• Verifies documents and the Single Line Diagram (SLD)
• Inspects and tests the installed Renewable Energy System
• Installs the Net Meter
• Assigns the Registration Number
• Grants connectivity

Deficiency Handling

Deficiencies are communicated through a single consolidated intimation (no piecemeal or successive notices). The consumer has 15 days to rectify deficiencies, after which the DISCOM must complete the remaining process within 5 days. Minor deviations that do not affect safety or grid compatibility cannot be used as grounds to delay registration or connectivity.

Overall Connectivity Timelines

Digital Connection Agreement

The Connection Agreement between the DISCOM and the consumer is now executed digitally:

• Domestic consumers up to 10 kW: electronic acceptance via click or tick-box on the portal
• Non-domestic consumers or systems above 10 kW: electronic or digital signature required
• No separate physical Connection Agreement is required
• The digitally executed agreement is legally valid and binding under the Net Metering Regulations, 2014

Fee Waivers

For domestic consumers with systems up to 10 kW:

• No application fee for feasibility analysis
• No registration charges
• Applicable regardless of whether the consumer avails PM Surya Ghar benefits

For industrial and commercial consumers, standard application and registration fees apply. Verify current fee schedules with your DISCOM.

This means the process for industrial rooftop solar in Delhi is now significantly faster and more predictable than before. In short, a Delhi factory applying for a 200 kW net-metered system can expect connectivity within approximately 25 days of a complete application, plus installation time.

Group Net Metering and Virtual Net Metering

Delhi has had Group Net Metering (GNM) and Virtual Net Metering (VNM) frameworks since 2019, with multiple amendments through 2026 (the Seventh Amendment to VNM and GNM Guidelines was issued in 2026). These frameworks are particularly valuable for industrial consumers with multiple facilities or limited roof space.

Group Net Metering (GNM)

GNM allows a single consumer to share solar energy credits across multiple electricity connections within the same DISCOM area. If a factory has multiple meter connections under the same ownership, surplus from the solar-generating connection can be adjusted against consumption at other connections in a priority sequence defined by the consumer.

Key GNM provisions:

• Surplus units are first adjusted at the connection where the solar system is located
• Balance surplus is adjusted against other connections per the consumer's priority list
• The priority list can be revised once per financial year with two months' advance notice
• ToD consumers: surplus is treated as off-peak for carry-forward purposes

Virtual Net Metering (VNM)

VNM allows multiple different consumers to share generation from a single community solar plant. Credits are shared among participating consumers based on agreed ratios. This enables factories without sufficient roof space to invest in off-site solar installations.

GNM and VNM Amendment Timeline

The bottom line is that Delhi's GNM and VNM frameworks are the most mature in India, having been operational since 2019 with seven amendments refining the process. For industrial groups with multiple Delhi facilities, GNM is a powerful tool for maximising solar savings across all connections.

For consumers exploring capital-light models, RESCO or OPEX solar arrangements are also available under the Delhi Solar Energy Policy 2023, where a RESCO developer installs and owns the system while the consumer pays a pre-agreed PPA rate.

Delhi Solar Energy Policy 2023 and Industrial Incentives

The Delhi Solar Energy Policy 2023 was notified on 14 March 2024 and provides the overarching framework for solar adoption in Delhi. For industrial consumers, key provisions include:

Generation-Based Incentive (GBI)

An early-bird GBI is offered for the first 200 MW of commercial and industrial rooftop solar deployment. For C and I consumers, the GBI is approximately ₹1.00 per unit for 5 years from the date of commissioning, provided the system is commissioned within the three-year operative period of the Policy.

RESCO and Hybrid RESCO Models

The policy supports RESCO (Renewable Energy Service Company) and Hybrid RESCO models for consumers with capital constraints:

• The RESCO developer leases the rooftop and sells power directly to the DISCOM via a PPA
• The consumer signs a net metering agreement with the DISCOM
• Under Hybrid RESCO, the consumer pays the RESCO developer through the DISCOM bill at a predetermined tariff
• No upfront capital cost for the consumer

C and I Consumer Application Process

Commercial and Industrial consumers in Delhi are not eligible for the Central Financial Assistance (CFA) under PM Surya Ghar. C and I consumers follow the process prescribed on their respective DISCOM portal:

1. Submit application through the DISCOM or Delhi State Portal
2. DISCOM conducts technical feasibility (within 15 days per new guidelines)
3. Consumer selects an empanelled vendor in their DISCOM jurisdiction
4. After installation, submit installation documents to DISCOM
5. DISCOM conducts site inspection and approves if compliant
6. DISCOM installs net meter and solar meter; system is energised
7. Online commissioning certificate is generated

This means the Delhi Solar Energy Policy 2023 explicitly acknowledges that while rooftop solar is inherently cost-effective for C and I consumers, uptake has been slow due to capital constraints — hence the GBI and RESCO models to accelerate adoption. For choosing the right implementation partner, see our guide on selecting a solar provider in India.

Common Application Errors and How to Avoid Them

1. Incomplete or Non-Standard Drawings

Each DISCOM requires five drawing types: SLD in DISCOM-specific format, Site Layout, Earthing Diagram, Net Meter Schematic, and Structural Certificate. Using BRPL-format drawings for a BYPL or TPDDL application results in rejection. Work with an EPC partner who maintains DISCOM-specific template libraries.

2. ALMM Non-Compliance

Since January 2023, ALMM-listed modules (Approved List of Models and Manufacturers, List-I) and MNRE-approved inverters are mandatory. Projects using non-ALMM equipment face automatic rejection. Verify that your module and inverter models appear on the current ALMM list before procurement.

3. Sanctioned Load Mismatch

The solar system capacity must not exceed the consumer's sanctioned load. If your desired capacity exceeds your current sanctioned load, apply for a load enhancement with your DISCOM before or concurrent with the net metering application.

4. Transformer Capacity Issues

The system must not exceed 90 percent of the available transformer capacity at the consumer's distribution transformer. Pre-check transformer hosting capacity, especially for larger systems (200 kW and above) in older industrial areas.

5. Missing Anti-Islanding Protection

Anti-islanding protection is mandatory per DERC technical standards. The inverter must have certified anti-islanding functionality to prevent back-feeding a dead grid during power outages. Missing this in the SLD or using a non-compliant inverter triggers rejection.

6. Incorrect Application Route

Industrial and commercial consumers must apply through Route B (DISCOM or Delhi State Portal), not through the PM Surya Ghar National Portal (which is Route A for domestic consumers only). Submitting through the wrong portal delays processing.

The bottom line is that the new two-stage process with deemed-approval provisions and consolidated deficiency notices has significantly reduced rejection-related delays. However, working with an experienced solar EPC company in India that understands DISCOM-specific requirements remains the most reliable path to rapid commissioning.

Delhi vs Other States: Net Metering Comparison

For a comprehensive state-by-state comparison, see our solar open access state comparison for 2026.

Frequently Asked Questions

What is the maximum solar system size allowed under net metering in Delhi?

The maximum net-metered solar system size in Delhi is 500 kW per individual consumer connection, applicable to all consumer categories including industrial. This is constrained further by the consumer's sanctioned load and 90 percent of available transformer capacity. Systems above 500 kW must use a bilateral PPA or open access arrangement with DERC approval. As of June 2026, no expansion to 1 MW had been formally adopted in Delhi.

Which DISCOM should I apply to for net metering in Delhi?

Your DISCOM depends on your location: BRPL (BSES Rajdhani) serves South and West Delhi, BYPL (BSES Yamuna) serves East and Central Delhi, and TPDDL (Tata Power) serves North and Northwest Delhi. Check your electricity bill to confirm your DISCOM. Industrial and commercial consumers apply through Route B — the respective DISCOM's online portal or the Delhi State Portal.

How long does the net metering application process take in Delhi?

Under the DERC Second Amendment Guidelines, 2026 (effective 16 July 2026), the process is significantly faster. For systems above 10 kW, the DISCOM must complete feasibility within 15 days and Stage II (verification, inspection, meter installation, connectivity) within 10 days — a total of 25 days. For systems up to 10 kW, no feasibility is required and connectivity must be granted within 10 days. If the DISCOM does not respond within the feasibility timeline, approval is deemed granted.

What rate will I get for excess solar exported to the grid in Delhi?

Excess solar export is settled at the Average Power Purchase Cost (APPC) rate of your respective DISCOM, approximately ₹3.00 to ₹4.00 per unit. This is paid on a provisional basis at year-end (March 31), with true-up adjustments after the Commission's true-up order. This is significantly lower than the effective industrial tariff of ₹12.50 to ₹15.60 per kWh, so maximising self-consumption is financially advantageous.

What is PPAC and how does it affect my industrial electricity bill in Delhi?

PPAC (Power Purchase Adjustment Cost) is a surcharge that allows DISCOMs to pass through real-time changes in fuel and procurement costs. In June 2026, DERC moved from quarterly to monthly PPAC revisions, with rates at BRPL 17.94 percent, BYPL 17.43 percent, and TPDDL 16.00 percent. For industrial consumers, PPAC adds approximately ₹3 to ₹4 per unit on top of base energy charges. PPAC is the primary reason effective tariffs in Delhi are among the highest in India, making solar displacement particularly valuable.

Can I use Group Net Metering for multiple factory connections in Delhi?

Yes, Delhi has had Group Net Metering (GNM) since 2019, with seven amendments through 2026. GNM allows a single consumer to share solar credits across multiple electricity connections within the same DISCOM area. Surplus from the solar-generating connection is first adjusted there, then against other connections per a priority list you define. The priority list can be revised once per financial year with two months' advance notice.

Are industrial consumers eligible for subsidies under the Delhi Solar Energy Policy 2023?

Commercial and Industrial consumers are not eligible for the Central Financial Assistance (CFA) under PM Surya Ghar. However, the Delhi Solar Energy Policy 2023 offers an early-bird Generation-Based Incentive (GBI) of approximately ₹1.00 per unit for 5 years for the first 200 MW of C and I deployment. Additionally, RESCO and Hybrid RESCO models are available for consumers who want solar without upfront capital investment.

What equipment is mandatory for net metering in Delhi?

ALMM-listed modules (List-I) and MNRE-approved inverters are mandatory since January 2023. The bidirectional net meter must be DLMS-compliant. Anti-islanding protection is mandatory per DERC technical standards. The minimum system capacity is 1 kW peak. The inverter must have certified anti-islanding functionality. Using non-compliant equipment is a common rejection reason, so verify ALMM listing and inverter approval before procurement.

Primary Sources

1. DERC Regulations Page — https://www.derc.gov.in/regulations/derc-Regulations
2. DERC Tariff Orders Page — https://www.derc.gov.in/tarriff-orders
3. DERC Second Amendment Guidelines, 2026 (effective 16 July 2026) — https://tatapower-ddl.com/Editor_UploadedDocuments/Content/DERC_(Net_Metering_for_Renewable_Energy)_(Second_Amendment)_Guidelines,_2026.pdf
4. DERC First Amendment Regulations, 2024 — https://www.derc.gov.in/regulations/derc-net-metering-renewable-energy-first-amendment-regulations-2024
5. DERC FPPAS Order dated 10.06.2026 — https://www.tatapower-ddl.com/Editor_UploadedDocuments/Content/DERC_order_on_FPPAS_dated_10.06.2026.pdf
6. SolarQuarter: Delhi Unveils DERC Net Metering Guidelines 2026 — https://solarquarter.com/2026/07/20/delhi-unveils-derc-net-metering-guidelines-2026-to-fast-track-rooftop-solar-connections-in-delhi/
7. Times of India: No feasibility check for domestic rooftop solar up to 10 kW — https://timesofindia.indiatimes.com/city/delhi/norms-change-no-feasibility-check-for-domestic-rooftop-solar-systems-up-to-10kw/articleshow/132565500.cms
8. ET Energy World: Less paperwork, fixed timelines for solar rooftop in Delhi — https://energy.economictimes.indiatimes.com/news/renewable/less-paperwork-fixed-timelines-to-make-solar-rooftop-installations-simpler-in-delhi/132571343
9. Delhi Solar Portal — https://solar.delhi.gov.in/
10. Delhi Solar Energy Policy 2023 (with amendment) — https://solar.delhi.gov.in/public/assets/solar/delhi_solar_policy_2023_with_amendment.pdf
11. EEREM Centre: Installation Process for Consumers — https://eerem.delhi.gov.in/eerem/installation-process-consumers
12. TPDDL Net Metering Connection Agreement — https://www.tatapower-ddl.com/Editor_UploadedDocuments/Content/Net_Metering_Connection_Agreement.pdf
13. DERC GNM and VNM Guidelines, 2019 — https://solar.delhi.gov.in/public/assets/solar/0.%20DERC(Group%20Net%20Metering%20and%20Virtual%20Net%20Metering%20for%20Renewable%20Energy)%20Guidelines,%202019.pdf
14. BRPL Renewable Energy Page — https://www.bsesdelhi.com/web/brpl/renewable-energy
15. BYPL Renewable Energy Page — https://www.bsesdelhi.com/web/bypl/renewable-energy
16. DERC Net Metering Regulations, 2014 (BSES portal) — https://solar.bsesdelhi.com/Regulation.aspx
17. Open Access Exchange: Delhi Electricity Tariff FY 2025-26 — https://www.openaccessexchange.com/tariffs/delhi-electricity-tariff-fy-2025-26/
18. Bridgeway Power: Commercial Electricity Tariff Delhi 2026 — https://bridgewaypower.in/blog/commercial-electricity-tariff-delhi-2026
19. Hindustan Times: Delhi govt eases rooftop solar rules — https://www.hindustantimes.com/cities/delhi-news/delhi-govt-eases-rooftop-solar-rules-to-boost-adoption-101784746836899.html

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This guide was researched and written by Sun Wave Technologies, a leading solar EPC company in India specialising in commercial and industrial solar projects. Regulatory details were verified against primary DERC and DISCOM sources as of July 2026. For project-specific consultation, contact Sun Wave Technologies.

Disclaimer: Tariff rates, PPAC surcharges, and regulatory provisions are subject to change based on DERC orders and DISCOM guidelines. Always verify current rates with your DISCOM and the latest DERC tariff order before making investment decisions.