KESCO Net Metering for Kanpur Industry: 2026 Guide

Direct answer

KESCO — Kanpur Electricity Supply Company, the discom serving Kanpur city — processes rooftop solar net metering under the UPERC (Rooftop Solar PV Grid Interactive Systems Gross/Net Metering) Regulations, 2019, as amended. Kanpur's industrial consumers (leather, textiles, engineering, chemicals across Jajmau, Panki, Kalpi Road and Dada Nagar) can install rooftop solar with net metering or net billing, against HT tariffs around ₹7.50-9.00/kWh in FY 2026-27 — making solar payback typically 4-5 years on a CAPEX basis. Applications go through KESCO's commercial circle offices and the UPNEDA/UPPCL solar portals, with feasibility normally due within 30 days of a complete application.

TL;DR: Kanpur factories get UP's standard net metering framework via a city-specific discom. Practical timeline 6-10 weeks from application to net meter; export surplus settles near the APPC rate (roughly ₹3.20-3.80/unit) monthly with annual true-up; size the plant to daytime load, not the roof.

KESCO in one table

Why Kanpur is a strong industrial solar market

Kanpur is the industrial core of central UP. The Jajmau leather cluster, Panki and Kalpi Road industrial areas, and Dada Nagar units combine three things that make rooftop solar work: high HT tariffs with evening ToD surcharges, large shed roofs in the 50,000-2,00,000 sq ft class, and daytime-heavy production profiles (tanning, dyeing, spinning, machining) that absorb solar generation directly.

UP's structural advantage over neighbouring states is the net metering cap: UP discoms permit up to 2 MW for HT consumers under the captive/net metering framework — double the 1 MW cap in MP, and more generous than Haryana's 1 MW. A Kanpur textile mill or leather unit with a large roof can therefore offset a far bigger share of its bill with on-site solar before needing open-access supply.

UP also layers state-level benefits: electricity duty exemption for renewable self-generation under the UP Solar Policy framework (extended to FY 2026-27), and a 75% cross-subsidy surcharge waiver on open access for qualifying projects. Our industrial solar in Uttar Pradesh guide covers the state-wide picture.

KESCO net metering process, step by step

1. Application. Apply through the UPNEDA solar rooftop portal or UPPCL solar portal (or offline on Annexure-I of the RSPV Regulations) with a recent electricity bill, load/connection details, single-line diagram and system size. Keep the system within your sanctioned load — UPERC caps system capacity at the consumer's sanctioned/contracted load.
2. Feasibility. KESCO must complete feasibility within 30 days of a complete application (60 days if an interconnection study is required). Feasibility checks transformer capacity and grid compatibility at your feeder.
3. Registration. After feasibility, register the scheme (Annexure-III) and receive a registration number; the interconnection agreement (Annexure-V-B for net metering) must be executed within 30 days of registration.
4. Installation and inspection. Install with ALMM List-I modules (List-II cell requirements apply from 1 January 2027 for net-metering projects — the December 2026 exemption window is closing; see our ALMM exemption guide). KESCO inspects the installation against the approved capacity and safety standards.
5. Commissioning report and meter. Submit the commissioning report to the correct KESCO commercial circle office. KESCO installs the bi-directional meter — typically 7-15 days after successful inspection — and net metering begins.
6. Billing. Monthly netting with annual true-up. Surplus at year-end settles near the APPC rate. If KESCO delays the meter unreasonably, UPERC's consumer grievance route (CGRF, then Ombudsman) is the escalation path.

Sizing a Kanpur factory solar plant

Size to daytime load, not roof area. Generation in Kanpur runs about 4.2-4.6 units per kW per day (1,450-1,550 kWh/kWp/year across the year — see our units-per-kW guide for city-level data). A useful first check:

For a two-shift plant, surplus exports are small and the net metering economics are clean. For single-shift or morning-only operations, model ToD: UP's ToD surcharge lands in the evening (15% surcharge 7 PM-2 AM, April-September), which solar cannot serve but a BESS or group-captive open-access contract can — see our BESS arbitrage analysis for NCR-style ToD economics.

Costs, payback and the ALMM clock

A 1 MW industrial rooftop plant in UP costs roughly ₹3.5-3.95 crore turnkey in 2026 (₹35-39/Wp) with Tier-1 ALMM modules, and payback runs 4.0-4.8 years against KESCO's HT tariffs — improving to roughly 3.2-4.8 years after the 40% accelerated depreciation benefit for profitable units commissioning before the financial year closes. Component-level splits and the CTUIL benchmark are in our 1 MW cost guide.

One procurement deadline matters now: net-metering and open-access projects commissioned on or before 31 December 2026 are exempt from ALMM List-II cell requirements; projects commissioned from 1 January 2027 must use List-II-compliant cells. That affects module supply chains and prices in Q4 2026 — lock procurement timelines early. Our ALMM List-II exemption guide explains the windows.

KESCO vs the other UP discoms for solar

KESCO is city-specific — unlike PVVNL (Meerut/west UP), MVVNL (Lucknow/central), DVVNL (Agra/south) and PuVVNL (Varanasi/east), which cover zones. Practical differences:

• Process contact: KESCO routes everything through its commercial circle offices in Kanpur; zone discoms work through district-level offices. Vendor familiarity with the right office materially affects timelines.
• Tariff order: KESCO files its own petition (2315/2025 in the FY 2026-27 proceedings) but the UPERC order retains the state-wide tariff schedule, so KESCO HT rates track the other discoms closely.
• Noida/Greater Noida exception: NPCL, not KESCO or PVVNL, serves Greater Noida's industrial areas with its own net billing framework — see our NPCL net metering guide.

FAQ

What is the net metering capacity limit for industrial consumers in KESCO?

Under the UPERC RSPV framework, a rooftop solar system can be installed up to the consumer's sanctioned/contracted load, and UP discoms permit up to 2 MW for HT captive consumers under net metering/net billing pathways — among India's highest caps. Confirm the exact pathway (net metering vs net billing) for your load category with KESCO at feasibility, since UP applies net billing to larger HT systems.

How long does KESCO take to install a net meter?

The regulation obliges feasibility within 30 days (60 with an interconnection study), and the practical application-to-meter timeline reported across UP discoms is 6-10 weeks: feasibility 15-30 days, installation by your vendor, KESCO inspection, then bi-directional meter installation 7-15 days after inspection. Submit the commissioning report to the correct commercial circle office to avoid re-routing delays.

What rate do I get for surplus solar exported to KESCO?

Surplus is settled monthly with an annual true-up, with year-end surplus typically valued near the discom's APPC rate — reported around ₹3.20-3.80 per unit for UP discoms. Because that is far below KESCO's HT tariff of ₹7.50-9.00/kWh, design the plant to consume generation on-site rather than export it.

Is there a subsidy for industrial solar in Kanpur?

No central subsidy: PM Surya Ghar's capital assistance is residential-only, and C&I systems get no central CFA. The economic case rests on 40% accelerated depreciation, GST input credit where applicable, UP's electricity duty exemption for renewable self-generation, and avoided HT tariffs. Our commercial solar subsidy guide separates real incentives from myths.

Does the ALMM List-II cell requirement apply to my KESCO net metering project?

Projects commissioned on or before 31 December 2026 are exempt from ALMM List-II (cell) requirements — no portal application needed. From 1 January 2027, net-metering and open-access projects must use ALMM List-I modules built with List-II-compliant cells. If your commissioning is realistic this calendar year, the exemption window is worth protecting in your schedule.

Sources

• UPERC (Rooftop Solar PV Gross/Net Metering) Regulations, 2019 with amendments
• UPERC tariff order FY 2026-27 — DVVNL, MVVNL, PVVNL, PuVVNL, KESCO
• UPERC retains FY27 power tariffs — Power Peak Digest
• Net metering in UP: how all 6 DISCOMs handle solar export — SolarSahi
• KESCO — Kanpur Electricity Supply Company (official portal)