Rajasthan Solar Net Metering Guide for Industry (2026)

Direct Answer

Rajasthan industrial consumers can install rooftop solar systems up to 1 MW under net metering, governed by the Rajasthan Electricity Regulatory Commission (RERC) Grid Interactive Distributed Renewable Energy Generating Systems Regulations, 2021 (amended 2025). The state's three DISCOMs — Jaipur Vidyut Vitran Nigam (JVVNL), Ajmer Vidyut Vitran Nigam (AVVNL), and Jodhpur Vidyut Vitran Nigam (JdVVNL) — all follow the same RERC framework. Industrial HT consumers pay approximately ₹7.50 to ₹9.00 per kWh for grid power, while excess solar export is settled annually at the RERC-approved avoided cost rate (approximately ₹3.20 to ₹3.60 per unit). The application process takes 30 to 45 days end-to-end, including feasibility study, approval, installation, inspection, and net meter installation. The bottom line is that Rajasthan offers one of the most generous net metering caps in India at 1 MW, combined with the highest solar irradiance in the country, making it a top-tier state for industrial rooftop solar ROI.

Key Takeaways

• Net metering capacity cap: up to 1 MW for all consumer categories (raised from 500 kW in February 2024)
• Three DISCOMs serve Rajasthan: JVVNL (Jaipur and east), AVVNL (Ajmer and central), JdVVNL (Jodhpur and west)
• Industrial HT tariff: approximately ₹7.50 to ₹9.00 per kWh across DISCOMs
• Settlement period: annual (April to March), with monthly credit carry-forward
• Excess export rate: approximately ₹3.20 to ₹3.60 per unit (RERC avoided cost)
• Application timeline: 30 to 45 days total
• Time-of-Day (ToD) tariffs apply to C and I consumers with maximum demand above 10 kW
• New Virtual Net Metering (VNM) and Group Net Metering (GNM) frameworks added in October 2025
• Solar irradiance: 5.5 to 6.0 kWh per square metre per day — highest in India

Verified Snapshot: Rajasthan Net Metering for Industry

Regulatory status last checked: 18 July 2026

Capacity Limits and System Sizing

The 1 MW Net Metering Cap

The RERC issued a suo moto order on 7 February 2024 increasing the net metering capacity limit from 500 kW to 1 MW for all consumer categories in Rajasthan. This order was issued under Regulation 7 and Regulation 19 of the RERC Grid Interactive Distributed Renewable Energy Generating Systems Regulations, 2021. The order explicitly states that net metering arrangements shall be applicable for loads up to 1 MW or up to the sanctioned load or contract demand, whichever is lower.

In short, this means a factory with a sanctioned load of 800 kW can install up to 800 kW of rooftop solar under net metering, while a factory with a sanctioned load of 1.5 MW can install up to 1 MW. Systems above 1 MW fall outside the net metering framework and must use gross metering, open access, or net billing arrangements under separate RERC regulations.

The cap removal tying rooftop capacity to 100 percent of sanctioned load was also a key change — previously, rooftop solar capacity was restricted to the sanctioned load or contract demand. This revision allows installations up to 1 MW irrespective of sanctioned load, subject to the 1 MW ceiling.

Category-Wise System Size Limits

The following table summarises the maximum system sizes under RERC net metering regulations:

This means most industrial consumers in Rajasthan — whether LT or HT — can net-meter their rooftop solar up to the applicable cap. For large factories with connected loads above 1 MW, the options expand to open access solar or group captive solar.

Transformer Hosting Capacity

A practical constraint that often binds before the regulatory ceiling is transformer hosting capacity. The total solar capacity connected to a specific distribution transformer (DT) must not exceed approximately 80 to 100 percent of the DT's rated capacity. In dense urban areas of Jaipur (such as Vaishali Nagar, Malviya Nagar, and C-Scheme), feeder saturation can limit approved system sizes well below the 1 MW cap. In JdVVNL's rural western districts, distribution transformers serving small villages may already be loaded, capping approvals below the sanctioned load.

To summarize, always pre-check feeder capacity with the local JVVNL, AVVNL, or JdVVNL sub-division before sizing systems above 200 kW in urban areas. The aggregate sanctioned capacity on a feeder typically must not exceed 30 percent of the feeder's rated load.

DISCOM Coverage Areas

Rajasthan distributes power through three zone-based DISCOMs, all regulated by RERC. Understanding which DISCOM serves your industrial facility is the first step in the net metering process.

All three DISCOMs follow the same RERC regulations, but drawing templates and sub-division contacts differ. A JVVNL-format drawing submitted to AVVNL or JdVVNL will be rejected on format alone. This means EPC contractors must use DISCOM-specific drawing templates for each application.

For industrial areas, key manufacturing corridors include Sitapura and Mansarovar (JVVNL territory), Bhiwadi and Neemrana (JVVNL territory in Alwar district), and the Bhilwara-Kota industrial belt (JdVVNL territory). To identify your DISCOM, check the header on your electricity bill.

FY2026-27 Industrial Tariffs in Rajasthan

Energy Charges

Rajasthan's three DISCOMs share a common tariff structure set by RERC. The RERC tariff order for FY2026-27 was issued in March 2026, with key highlights including rationalisation of charges without additional burden on consumers and reduced minimum energy charges for certain industrial categories.

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

Note: Exact FY2026-27 rates should be verified with the specific RERC tariff order for your DISCOM. The above figures are approximate based on available tariff schedules and may vary by consumption slabs and specific category definitions.

The bottom line is that Rajasthan's industrial tariffs, combined with the state's exceptional solar irradiance (5.5 to 6.0 kWh per square metre per day), create one of the strongest solar ROI cases in India. A 1 MW industrial rooftop system in Rajasthan generates approximately 16 to 17 lakh units per year, saving approximately ₹1.2 to ₹1.5 Crore annually at current tariff rates.

Time-of-Day (ToD) Tariffs

Rajasthan implemented Time-of-Day tariffs starting in 2019-20, initially with a 15 percent rebate from 23:00 to 06:00 for HT Industry Category 1. Under the Electricity (Timely Day Ahead and Other) Rules, 2024, ToD tariffs are now mandatory for all Commercial and Industrial consumers with maximum demand above 10 kW from April 2024.

Key ToD provisions:

• Peak period surcharge: not less than 1.20 times the normal tariff for C and I consumers
• Solar hours rebate: at least 20 percent less than the normal tariff
• ToD charges apply on the energy charge component only
• For HT Industrial consumers, the 7.5 percent ToD surcharge translates to approximately ₹0.55 per unit

This means industrial consumers on ToD tariffs benefit doubly from solar — generation during solar hours offsets the highest-rebate period consumption, while avoiding peak-period surcharges. If you are evaluating solar IRR calculation methodology, the ToD interaction can materially improve project returns.

Settlement Rules and Credit Mechanics

Annual Settlement Period

Rajasthan's net metering settlement period runs annually from April to March, aligned with the financial year. The RERC DREGS Regulations, 2021 define the Settlement Period as "the period at the end of which Net Metering or Net Billing settlement between the Distribution Licensee and the consumer takes place, generally beginning from the first day of April of a calendar year and ending with the thirty-first day of March of the following year."

Monthly Credit Carry-Forward

Meter readings are taken monthly or as per the billing cycle specified under the applicable Electricity Supply Code. For each billing period, the DISCOM shows separately:

• Quantum of electricity injected by the consumer
• Electricity supplied by the distribution licensee
• Net electricity billed for payment
• Solar energy generated

If the quantum of electricity exported exceeds the quantum imported during a billing period, the excess is handled as follows:

• For domestic consumers: excess above 100 units is paid at the RERC-determined rate, with a capping of 4.8 units per kW of approved installed capacity per day
• For non-domestic (industrial) consumers: the same 4.8 units per kW per day cap applies, and any net surplus remaining at the end of the billing period lapses (no payment is made for the carryover beyond the cap)
• Net energy credits less than 50 units in a billing period are adjusted in the next billing period until the 50-unit credit threshold is achieved

Year-End Settlement

At the end of the financial year (March 31), unadjusted net credited units for domestic consumers are purchased by the DISCOM at the RERC-approved avoided cost rate. For non-domestic consumers, surplus electricity remaining at the end of the billing period lapses.

The avoided cost rate is set annually by RERC, approximately ₹3.20 to ₹3.60 per unit in recent orders. This is the weighted average tariff of large-scale solar projects of 5 MW and above discovered through competitive bidding in the preceding financial year.

In short, industrial consumers should maximise self-consumption rather than relying on export credits, since the avoided cost rate (₹3.20 to ₹3.60 per unit) is significantly lower than the retail tariff (₹7.50 to ₹9.00 per unit). This means every unit consumed on-site saves the full retail tariff, while every unit exported only earns the avoided cost rate.

ToD Interaction with Settlement

For consumers under Time-of-Day tariff, electricity consumption in any time block (peak hours, off-peak hours) is first compensated with electricity generation in the same time block. Any accumulated excess generation over consumption in another time block is accounted as if the excess generation occurred during the off-peak time block.

Application Process: Step by Step

The net metering application process in Rajasthan follows a standardised workflow across all three DISCOMs. The total timeline is approximately 30 to 45 days for most industrial projects.

Step 1: Online Application

Submit your application through the respective DISCOM portal. The application includes:

• Consumer details and connection number
• Proposed solar system capacity
• Single Line Diagram (SLD) in DISCOM-specific format
• General Arrangement drawing
• Earthing Diagram
• Structural Certificate referencing IS 875 wind zone
• Site photographs

Step 2: Technical Feasibility Review

The DISCOM's Executive Engineer (XEN) or Assistant Engineer (AEN) assesses whether the feeder serving your premises has available hosting capacity. Under the RERC Third Amendment (October 2025), feasibility studies must be completed within 15 days for existing connections and 30 days for new connections. If no response is received within the stipulated period, the proposal is deemed technically feasible.

For domestic consumers with systems up to 10 kW, no feasibility study is required.

Step 3: Approval and Installation

Upon approval, you receive an approval letter with technical conditions. Install the system per the approved specifications using ALMM-listed modules (Approved List of Models and Manufacturers) and MNRE-approved inverters. Non-compliance with ALMM requirements is a common rejection reason.

Step 4: DISCOM Inspection and Meter Installation

After installation, the DISCOM inspects the system and installs the bidirectional net meter. Grid connectivity must be provided within 30 days of approval under the amended regulations.

Step 5: Net Metering Agreement

Sign the net metering agreement with the DISCOM. For systems under PM Surya Ghar, domestic consumers up to 10 kW have the connection agreement requirement waived until the target of five lakh rooftop solar houses is achieved.

To summarize the timeline:

Virtual and Group Net Metering (2025 Amendment)

In October 2025, RERC approved the Third Amendment to the Grid Interactive Distributed Renewable Energy Generating Systems Regulations, 2025, introducing Virtual Net Metering (VNM) and Group Net Metering (GNM) to Rajasthan. This is a significant development 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. This is ideal for industrial groups with multiple factory units or warehouses under different meter connections but the same ownership.

Virtual Net Metering (VNM)

VNM allows multiple different consumers to share generation from a single community solar plant. This enables factories without sufficient roof space to participate in off-site solar installations.

Key Provisions of VNM and GNM

• System capacity: up to 100 percent of cumulative sanctioned load, capped at 1 MW total plant capacity
• Installations can be on rooftops, balconies, land, water bodies, or elevated structures
• Energy generated under VNM and GNM is exempt from banking charges, wheeling charges, cross-subsidy surcharge, and additional surcharge (for self-owned systems on consumer premises)
• Feasibility timelines: 15 days for existing connections, 30 days for new connections
• Existing net metering consumers can switch to GNM or VNM after terminating prior agreements

However, as of April 2026, DISCOMs had not yet issued operational guidelines for VNM and GNM implementation, slowing practical rollout. To summarize, while the regulatory framework exists, verify operational readiness with your DISCOM before planning a VNM or GNM project.

For consumers exploring alternatives to rooftop solar, RESCO or OPEX solar models and open access solar are worth evaluating.

Common Application Errors and How to Avoid Them

1. Drawing Format Non-Compliance

JVVNL processes net metering applications with first-pass rejection rates above 35 percent, almost entirely due to drawing format non-compliance. Each DISCOM requires five specific drawing types in its own format:

• SLD with explicit anti-islanding callout
• General Arrangement with meter reader access marked
• Earthing Diagram with soil type noted
• Net Meter Schematic
• Structural Certificate referencing IS 875 wind zone

Using JVVNL templates for AVVNL or JdVVNL applications results in symbol-set rejections. This means EPC contractors must maintain DISCOM-specific template libraries.

2. ALMM Non-Compliance

ALMM-listed modules (List-I) and MNRE-approved inverters are mandatory. Projects using non-ALMM equipment face automatic rejection. There was a temporary ALMM exemption window for stranded projects, but new installations must comply fully.

3. Sanctioned Load Mismatch

If your proposed solar capacity exceeds your sanctioned load, you must first apply for a sanctioned load extension with the DISCOM before applying for net metering. Many applicants discover this mismatch only after rejection.

4. Transformer Capacity Issues

Failing to pre-check transformer hosting capacity is a common oversight. If the total solar capacity on your distribution transformer already approaches 80 to 100 percent of its rated capacity, your application will be rejected until the transformer is upgraded.

5. Incomplete Documentation

Ensure all five drawing types are submitted, structural certificates reference the correct IS standard, and site photographs clearly show the installation area, meter location, and transformer. Missing any document triggers a rejection cycle.

The bottom line is that working with an experienced solar EPC company in India that understands DISCOM-specific requirements can reduce rejection rates dramatically and accelerate project commissioning.

Savings and ROI for Rajasthan Industrial Solar

Rajasthan offers the best solar ROI in India due to a combination of factors:

A 1 MW industrial rooftop solar plant in Rajasthan costs approximately ₹3.4 to 4.0 Crore and generates approximately 16 to 17 lakh units per year, saving approximately ₹1.2 to 1.5 Crore annually. With accelerated depreciation (40 percent in year 1), the effective payback period is approximately 2.0 to 2.5 years.

This means Rajasthan delivers the shortest solar payback periods in the country. For detailed ROI calculations, see our guide on solar panel ROI and payback period.

Rajasthan vs Other States: Net Metering Comparison

For a broader state-by-state comparison, see our net metering policy India guide and our solar open access state comparison.

RPO Compliance for Industrial Consumers

The RERC clarified in August 2026 that industrial consumers operating captive solar power plants behind the meter with capacity of 1 MW or above remain obligated entities under Rajasthan's Renewable Purchase Obligation (RPO) Regulations, 2023. However, electricity generated and self-consumed from these internal renewable energy systems will be counted toward meeting their RPO targets.

This means industrial consumers with behind-the-meter solar do not need to procure additional Renewable Energy Certificates (RECs) or green power for the portion of their RPO already met through internal solar generation. Renewable energy attributes cannot be claimed more than once, maintaining accounting integrity.

For commercial and industrial solar consumers, the RPO compliance angle is a strong additional argument for rooftop solar beyond bill savings.

Frequently Asked Questions

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

The maximum net-metered solar system size in Rajasthan is 1 MW for all consumer categories, as per the RERC suo moto order dated 7 February 2024. For HT industrial consumers, the cap is 1 MW or the sanctioned load or contract demand, whichever is lower. Systems above 1 MW must use gross metering, open access, or net billing arrangements.

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

Your DISCOM depends on your location: JVVNL serves Jaipur and eastern districts (Alwar, Bharatpur, Dausa, Sawai Madhopur, Karauli, Tonk, Dhaulpur), AVVNL serves Ajmer and central districts (Sikar, Jhunjhunu, Bikaner, Churu, Hanumangarh, Sri Ganganagar, Nagaur, Pali, Jalore), and JdVVNL serves Jodhpur and western districts (Barmer, Jaisalmer, Sirohi, Udaipur, Bhilwara, Baran, Bundi, Kota, Jhalawar, Chittorgarh). Check your electricity bill header to confirm.

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

The total process takes approximately 30 to 45 days, excluding installation time. Feasibility study takes 15 days for existing connections and 30 days for new connections (deemed approved if no response within the timeline). After installation, DISCOM inspection and meter installation take 7 to 15 days.

What is the settlement period for net metering in Rajasthan?

The settlement period is annual, running from April to March (financial year). Monthly surplus credits are carried forward within the year. For domestic consumers, unadjusted credits at year-end are purchased at the RERC avoided cost rate. For non-domestic (industrial) consumers, surplus electricity remaining at the end of the billing period lapses, subject to the 4.8 units per kW per day cap.

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

Excess solar export is settled at the RERC-approved avoided cost rate, approximately ₹3.20 to ₹3.60 per unit in recent orders. This is the weighted average tariff of large-scale solar projects of 5 MW and above discovered through competitive bidding. The exact rate is reviewed annually by RERC. This is significantly lower than the retail industrial tariff of ₹7.50 to ₹9.00 per kWh, so maximising self-consumption is more financially advantageous.

Can I install solar above my sanctioned load under net metering?

Under the 2024 RERC order, the net metering cap is 1 MW or the sanctioned load, whichever is lower. If your desired solar capacity exceeds your current sanctioned load, you must first apply for a sanctioned load extension with your DISCOM before applying for net metering. Some EPC providers manage this load enhancement process as part of their service.

Are Virtual Net Metering and Group Net Metering available in Rajasthan?

Yes, RERC introduced VNM and GNM through the Third Amendment to the DREGS Regulations in October 2025. VNM allows multiple consumers to share generation from a single solar plant, while GNM allows one consumer to share credits across multiple connections. However, as of April 2026, DISCOMs had not yet issued operational guidelines, so verify operational readiness with your DISCOM before planning a VNM or GNM project.

What equipment is mandatory for net metering in Rajasthan?

ALMM-listed modules (List-I) and MNRE-approved inverters are mandatory for all net metering installations. The bidirectional net meter must be DLMS-compliant. Anti-islanding protection is required per DERC and CEA technical standards. Check meters are mandatory for rooftop solar systems with capacity more than 250 kW. Using non-compliant equipment is a common rejection reason.

Primary Sources

1. RERC Regulations Page — https://rerc.rajasthan.gov.in/rerc-user-files/regulations
2. RERC Tariff Orders Page — https://rerc.rajasthan.gov.in/rerc-user-files/tariff-orders
3. RERC Office Orders Page — https://rerc.rajasthan.gov.in/rerc-user-files/office-orders
4. RERC suo moto order dated 07.02.2024 increasing net metering cap to 1 MW — https://renewablewatch.in/2024/02/12/rerc-increases-rooftop-solar-net-metering-limit-to-1-mw/
5. RERC Third Amendment to DREGS Regulations, 2025 (October 2025) — https://www.rear.org.in/_files/ugd/07f8d4_0c93052fa6d541aaa6eb87a210d83410.pdf
6. SolarQuarter: RERC Approves Third Amendment — https://solarquarter.com/2025/10/14/rerc-approves-third-amendment-to-distributed-renewable-energy-regulations-2025-to-boost-virtual-and-group-net-metering-in-rajasthan/
7. Times of India: RERC opens solar access to all — https://timesofindia.indiatimes.com/city/jaipur/rerc-opens-solar-access-to-all-with-new-net-metering-rules/articleshow/124537133.cms
8. RERC DREGS Regulations, 2021 (Consolidated) — https://www.cbip.org/regulationsdata/Rajasthan/July_2021/RJ_Grid%20Distributed_2021.pdf
9. Rajasthan Net Metering Consolidated Order (2015 regulations) — https://www.cbip.org/regulationsdata/Rajasthan/March2019/RJ%20Net%20Metering/Rajasthan%20Net%20Metering%20Consolidated%20Order.pdf
10. Mercom India: Rajasthan VNM and GNM rollout update (April 2026) — https://www.mercomindia.com/rajasthans-virtual-group-net-metering-rollout-slows-amid-lack-of-guidelines
11. RERC Clarification on Behind-the-Meter Captive Solar and RPO (August 2026) — https://solarquarter.com/2026/08/03/rerc-clarifies-behind-the-meter-captive-solar-plants-must-meet-rpo-through-self-consumption-in-rajasthan/
12. Prayas Energy Group: Rajasthan ToD Tariff Study 2024 — https://energy.prayaspune.org/images/pdf/Raj_ToD_Study_2024.pdf
13. RERC Tariff Order FY2026-27 LinkedIn summary — https://www.linkedin.com/posts/arti-dogra-16ab1515_tariff-order-2026-27-activity-7446419328914137088-tr15
14. Sun Wave Technologies: Solar Installation in Rajasthan for Industry — https://www.sunwavetech.com/blog/solar-installation-rajasthan-industry-guide

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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 rooftop solar projects. Regulatory details were verified against primary RERC and DISCOM sources as of July 2026. For project-specific consultation, contact Sun Wave Technologies.

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