RERC Net Metering for Industry: Rajasthan C&I Rooftop Guide (2026)

Direct Answer: What Are the Rooftop Solar Rules for a Rajasthan Factory in 2026?

A commercial or industrial consumer in Rajasthan — whether on JVVNL (Jaipur), AVVNL (Ajmer) or JdVVNL (Jodhpur) — can install rooftop solar under the RERC (Grid Interactive Distributed Renewable Energy Generating Systems) Regulations, 2021 ("DREGS 2021"), the framework in force for any system commissioned on or after 1 July 2021. The key parameters:

Capacity: >1 kW up to 1 MW, and up to 100% of your sanctioned load / contract demand. Above 1 MW the route is open access.
Net metering (kWh netting) is available up to 500 kW or sanctioned load, whichever is lower; net billing is available to all C&I categories.
Transformer cap: cumulative renewable capacity on a distribution transformer is capped at 80% of DT capacity — but HT consumers with a dedicated transformer are exempt.
Export settlement: surplus is settled at the weighted-average discovered tariff of ≥5 MW solar projects from the previous financial year, plus an incentive.

Regulatory status last checked: 18 August 2026.

The Governing Instruments

Rajasthan's rooftop framework has two layers. The RERC (Connectivity and Net Metering for Rooftop and Small Solar Grid Interactive Systems) Regulations, 2015 govern older systems, while DREGS 2021 applies to systems commissioned from 1 July 2021 onward — which is to say, essentially every new C&I project today.

Instrument	Date	Key change
RERC Rooftop & Small Solar Regulations	26 Feb 2015	Original net-metering framework (1 kW–1 MWp, 80% of sanctioned load, 30% DT cap)
DREGS 2021 (base)	8 Apr 2021	Net metering + net billing; 1 MW cap; 100% sanctioned-load cap
Order on 500 kW applicability	7 Sep 2021	Net metering up to 500 kW or sanctioned load, all categories
First Amendment	6 Oct 2023	DT cap raised to 80%; net-billing incentive raised to +40%
Second Amendment	25 Jul 2024	Feasibility ≤15 days (deemed feasible if missed); ≤10 kW auto-complete
Third Amendment	13 Oct 2025	Adds Virtual & Group Net Metering, P2P trading, plug-and-play

Net Metering vs Net Billing vs Gross Metering — as RERC Defines Them

One clarification that trips up many buyers: under DREGS, "net billing" and "gross metering" are the same arrangement — RERC retained the term "net billing." So there are effectively two C&I routes:

Net Metering: a bidirectional meter nets import and export; the system sits behind your consumer meter. Available up to 500 kW or sanctioned load.
Net Billing (= gross metering): the system connects on the distribution-licensee side of your meter; the discom purchases the generation at the agreed tariff and credits it against your bill. Available to all C&I categories.

Capacity Caps and the Transformer Rule

Three ceilings apply, and you must satisfy all of them:

System cap: >1 kW and up to 1 MW under net metering or net billing (Reg 7.3).
Load cap: up to 100% of sanctioned load / contract demand (Reg 7.2).
Transformer cap: cumulative RE on a distribution transformer ≤ 80% of DT capacity — but HT consumers with their own transformer are exempt, a meaningful advantage for a factory with a dedicated transformer.

The First Amendment (2023) also clarified that under net billing, the peak AC (inverter) capacity cannot exceed the contracted AC capacity — though there is no restriction on installed DC capacity. That DC/AC headroom is a useful design lever for maximising self-consumption within a fixed contract demand.

How Is Surplus Solar Settled?

Net metering (Reg 12.6.1): where export exceeds import in a billing period, the excess is settled at the weighted-average tariff of large-scale (≥5 MW) solar projects discovered through competitive bidding in the previous financial year, plus 25% (First Amendment 2023), credited forward.
Net billing (Reg 12.5.2): the Connection Agreement is struck at the weighted-average discovered tariff for the technology from the previous FY, plus an incentive — raised to +40% by the First Amendment 2023.

Either way, export is worth far less than self-consumption against a ₹6.50–8.50/unit retail tariff — so size to your daytime load. Our solar savings calculator and sizing checklist walk through this.

New in 2025: Virtual & Group Net Metering for C&I

The DREGS Third Amendment (13 October 2025) added Virtual Net Metering (VNM), Group Net Metering (GNM), peer-to-peer trading and plug-and-play solar, open to all consumer categories including C&I. The commercially significant points:

VNM/GNM capacity: >1 kW up to 1 MW, ≤100% of the cumulative sanctioned load of participating connections.
Charge exemption: self-owned VNM/GNM energy is exempt from banking, transmission, wheeling, cross-subsidy and additional surcharges when the system is on the consumer's premises (wheeling applies if sited elsewhere).
HT / LT flexibility: an HT (≥11 kV) consumer under GNM may connect the system at the LT bus bar, with the net meter on the HT side of the transformer.
Switching: an existing net-metering consumer can enter GNM/VNM only after terminating its current agreement; a net-billing consumer cannot switch to VNM/GNM.

For a factory with a constrained or shaded roof, or a group of units, VNM/GNM is now a genuine structural alternative. For loads above 1 MW, the route is green open access — see our Rajasthan green open access guide and the Rajasthan open-access charges FY 2026-27.

The Application Process with JVVNL / AVVNL / JdVVNL

Apply to your discom in the prescribed form with the application fee (via the discom / Rajasthan energy portal).
Feasibility within 15 days of a complete application (deemed feasible if the timeline is missed; ≤10 kW systems need no feasibility study).
Approval within ~10 working days of security deposit / cleared deficiencies.
Connection Agreement (25-year term) executed before generation begins.
Metering — a bidirectional net meter (net metering) or a system on the licensee side (net billing); check meters are mandatory above 250 kW.
Commissioning within 15 days of the installation certificate.

An experienced EPC manages this end-to-end. For the wider Rajasthan picture — tariffs, policy incentives and ROI — see our companion industrial solar in Jaipur guide.

Frequently Asked Questions

What is the rooftop solar capacity limit in Rajasthan?

1 MW per premises under net metering or net billing, and up to 100% of your sanctioned load / contract demand. Net metering specifically is available up to 500 kW or sanctioned load, whichever is lower. Above 1 MW, use green open access.

Is net metering available to Rajasthan factories?

Yes, for C&I up to 500 kW or sanctioned load (whichever is lower). Larger C&I systems typically use net billing (which RERC treats as equivalent to gross metering) or open access.

How is surplus solar power settled in Rajasthan?

Surplus is settled at the weighted-average tariff of ≥5 MW solar projects from the previous financial year, plus an incentive (25% for net metering, 40% for net billing after the 2023 amendment), credited forward.

What is the distribution transformer cap for rooftop solar in Rajasthan?

Cumulative renewable capacity on a DT is capped at 80% of DT capacity. HT consumers with a dedicated transformer are exempt from this cap.

What did the October 2025 DREGS amendment add?

Virtual Net Metering, Group Net Metering, peer-to-peer trading and plug-and-play solar — open to all consumer categories, with VNM/GNM energy exempt from banking, wheeling, cross-subsidy and additional surcharges when sited on the consumer's premises.

Which discom serves Jaipur, Jodhpur and Ajmer?

Jaipur is served by JVVNL, Ajmer by AVVNL and Jodhpur by JdVVNL — all state-owned discoms regulated by RERC.