UPPCL & UPERC Rooftop Solar Rules for Industry: Net Billing Guide (2026)

Direct Answer: Can a Factory in Uttar Pradesh Get Net Metering in 2026?

Not in the kilowatt-for-kilowatt sense. Under the UPERC (Rooftop Solar PV Grid Interactive System Gross / Net Metering) Regulations, 2019 — the framework that governs every grid-connected rooftop plant in UPPCL and NPCL territory — true net metering is reserved for domestic (LMV-1) and agriculture (LMV-5) consumers, plus government and educational institutions added by later amendments. Commercial and industrial consumers are placed on net billing / net feed-in (or gross metering): you buy grid electricity at your full retail tariff, and surplus solar you export is settled at a separate, lower feed-in rate.

That distinction matters more than any other single line in the regulation, because it means a UP factory's rooftop solar returns are driven overwhelmingly by self-consumption, not export. The economics are still strong — UPPCL's industrial tariffs are among the highest in North India — but the plant has to be sized to your daytime load, not to your roof area.

Regulatory status last checked: 18 August 2026.

Who Is This Guide For?

This is written for owners and plant heads of factories, warehouses, cold storages, hospitals, hotels, IT parks and institutional buildings in Uttar Pradesh — the NCR belt (Noida, Greater Noida, Ghaziabad), Kanpur, Lucknow, Agra, Varanasi and the wider state — evaluating a grid-connected rooftop solar plant in 2026. It covers the rules that apply whether your supply comes from a UPPCL discom (PVVNL, MVVNL, DVVNL, PuVVNL, KESCO) or from NPCL in Greater Noida.

The Governing Framework: UPERC RSPV Regulations, 2019

The base regulation was notified on 4 January 2019 and has been amended three times:

The defining split is by consumer category, not by system size:

Because a factory imports at roughly ₹8–10 per kWh but exports are settled at a fraction of that, every unit you consume on-site is worth far more than every unit you export. This is the single most important design input.

The 2025 Third Amendment: Solar Injection Compensation

The change that took effect on 5 July 2025 rewrites how the distribution licensee values surplus solar. Under amended Regulation 10.3(ii), the discom now pays eligible rooftop consumers a Solar Injection Compensation equal to:

The weighted average tariff of large-scale (5 MW and above) competitively bid solar projects discovered in the previous financial year, plus a 25% incentive.

If no such bidding occurred in the previous financial year, the compensation falls back to the last applicable gross-metering tariff. This replaced the older flat feed-in figures and, because it is pegged to discovered utility-scale tariffs plus a premium, it moves with the market each year rather than sitting frozen.

Practical effect for a factory: the export rate is now a floating, market-linked number that will always sit well below your industrial retail tariff. Treat export revenue as a bonus on top of a self-consumption-led design, never as the reason to oversize. Model your own numbers with a solar savings calculator before locking capacity.

What the UP Solar Energy Policy, 2022 Adds

The regulation sets the how; the state policy sets the how much and the incentives. The Uttar Pradesh Solar Energy Policy, 2022 (operative for five years, implemented by UPNEDA as nodal agency) targets 22,000 MW of solar by 2026-27 — 14,000 MW utility-scale, 4,500 MW residential rooftop, 1,500 MW non-residential rooftop, and 2,000 MW under PM-KUSUM. Its relevant provisions for a C&I buyer:

• Net billing for industry and commerce: the policy confirms that net-billing facilities will be provided to industrial and commercial consumers, with UPERC determining the discom's purchase tariff.
• A 2 MW rooftop cap: grid-connected rooftop systems are permitted up to 2 MWp per consumer / premises, in line with the installed distribution transformer capacity.
• Captive and third-party sale: the policy expressly enables solar projects for captive consumption and for sale to third parties.
• Residential subsidy (not for industry): the Saurya Uttar Pradesh Yojna offers ₹15,000/kW (capped at ₹30,000) on residential rooftops, in addition to central assistance. Commercial and industrial projects do not receive this capital subsidy — their financial levers are tax-based instead.

Two state-level levers further improve project economics and are covered in our UP industrial EPC guide: an electricity-duty exemption on captive solar consumption and a concessional cross-subsidy surcharge on open-access power.

How Big Can You Build — the 2 MW Cap and the Transformer Rule

Two ceilings apply at once, and you must satisfy both:

1. Regulatory cap: 2 MWp per consumer under the RSPV framework and UP Solar Policy 2022.
2. Technical cap: your system capacity must sit within your connected load / contract demand and the capacity of the distribution transformer feeding you, per the UPERC Supply Code.

The 2 MW ceiling is one of the most generous in India — several large states cap rooftop net-metered capacity at 1 MW. For a Greater Noida warehouse or a Kanpur textile unit with a large single roof, that headroom is a genuine competitive advantage. Above 2 MW, or where the roof can't hold the load, the path shifts to open-access or group-captive structures under the Green Energy Open Access Rules, 2022, which allow any consumer of 100 kW and above (and captive consumers with no minimum at all) to buy renewable power across the grid.

A note on smaller systems: in August 2025 UPERC approved a set of waivers for rooftop consumers with sanctioned loads up to 10 kW — application and registration fees, net-meter testing fees, and the interconnection-agreement requirement were waived, while the ₹400/kW additional security deposit and ₹100 processing fee were retained, and AC-side capacity was capped at 90% of DC. Those waivers are aimed at the residential segment and rarely touch an industrial project, but they signal the direction of travel.

The Application Process with Your Discom

The broad sequence is the same whether you are in PVVNL (Noida, Ghaziabad), NPCL (Greater Noida), MVVNL (Lucknow), KESCO (Kanpur) or DVVNL / PuVVNL territory:

1. Confirm your category and arrangement — as an industrial or commercial consumer you will be on net billing / net feed-in or gross metering, not kWh net metering.
2. Apply to your distribution licensee with the system capacity, single-line diagram and technical particulars. The RSPV regulations require UPNEDA / the state designated agency, in consultation with the discom, to finalise the approval procedure and timelines within 60 days of notification.
3. Meet the technical standards — your plant must conform to the CEA (Technical Standards for Connectivity of Distributed Generating Resources) Regulations, 2013, the CEA metering regulations, the CEA safety measures, and the UPERC Grid Code.
4. Install a bidirectional meter so import and export are measured separately for net billing.
5. Commission, certify and synchronise, after which billing under your arrangement begins.

An experienced EPC handles this coordination end-to-end — it is one of the less visible but more valuable parts of a turnkey scope, and a reason to favour an EPC with an established UP / NCR track record.

What the FY 2026-27 Tariff Order Means for Your Savings

Your savings are the gap between the grid tariff you avoid and your solar levelised cost. UPERC's FY 2026-27 tariff order, issued in early July 2026, held tariffs flat for the seventh consecutive year, bridging the revenue gap from an accumulated regulatory surplus of about ₹11,602 crore rather than raising rates. The approved Average Billing Rates relevant to C&I buyers:

The industrial / commercial time-of-day structure is unchanged: a 15% rebate during daytime hours (7:00 AM–4:00 PM, April–September) and a 15% surcharge in the evening peak (7:00 PM–2:00 AM). Flat tariffs are a double-edged signal — they remove the tailwind of rising grid prices from your ROI model, but they also mean today's high industrial rates are the baseline you lock in against for 25 years. Cross-subsidy surcharge rates for FY 2026-27 were also notified (relevant to open access): ₹0.38–0.49/kWh for HV-2 and ₹1.33–1.53/kWh for HV-1.

Because the ToD rebate sits in daylight hours, solar directly displaces some of your cheapest grid energy in summer — which is exactly why an honest solar ROI and payback model must use your real interval load profile rather than a single blended tariff. See how this plays out in time-of-day tariff and factory solar savings.

Rooftop Net Billing vs Open Access: Which Route Fits Your Load?

For most single-site UP factories under roughly 2 MW of rooftop potential, behind-the-meter net billing wins on simplicity and landed cost. Above that, or where rooftop area is the constraint, open access becomes attractive — especially given UP's concessional cross-subsidy treatment. The trade-offs:

We model both routes in CAPEX vs OPEX vs open access and the RESCO / OPEX solar model, and compare state charges in the open-access state comparison and the UP open-access charges guide.

Making the Financial Case Without a Subsidy

Industrial buyers don't get the residential capital subsidy — but they get two tax levers that are often worth more:

• Accelerated depreciation: a solar plant qualifies for 40% Year-1 depreciation (WDV) under Section 32 of the Income Tax Act read with Appendix I, letting a profitable factory write off a large share of the capital cost early. Our accelerated depreciation guide walks the Year-1 math and the 1 October half-year rule.
• GST input tax credit: the GST paid on plant components is generally creditable against your output liability for a taxable business.

Combined with a UPPCL industrial tariff near ₹8–10/unit, this is why well-run UP rooftop projects cluster around a 3.5–4.5 year payback and low-twenties IRRs. Start with our how to size a solar plant for your factory checklist, then pressure-test the quote with how to read a solar EPC quote.

Frequently Asked Questions

Can an industrial consumer get net metering in Uttar Pradesh?

No. Under the UPERC RSPV Regulations, 2019, net metering (kWh-for-kWh netting) is limited to domestic (LMV-1), agriculture (LMV-5), and government/educational institution categories. Industrial and commercial consumers are placed on net billing / net feed-in or gross metering, where imports are billed at the retail tariff and exports are settled at a separate Solar Injection Compensation rate.

What is Solar Injection Compensation in UP?

Introduced by the Third Amendment effective 5 July 2025, it is the rate the discom pays for surplus solar you export. It equals the weighted average tariff of large-scale (5 MW+) competitively bid solar projects from the previous financial year, plus a 25% incentive; if no such bidding occurred, the last applicable gross-metering tariff applies.

What is the maximum rooftop solar capacity allowed in Uttar Pradesh?

2 MWp per consumer / premises, subject to your connected load and the capacity of the distribution transformer feeding you. Above 2 MW, projects typically move to open-access or captive structures.

Which discom serves Noida and Greater Noida?

Noida and Ghaziabad are served by PVVNL (a UPPCL subsidiary). Greater Noida is served primarily by NPCL (Noida Power Company Limited), a private licensee. Kanpur is served by KESCO and Lucknow by MVVNL.

Do factories in UP get a solar subsidy?

No capital subsidy for commercial or industrial rooftops — the Saurya Uttar Pradesh Yojna subsidy (₹15,000/kW, max ₹30,000) is for residential consumers. Industrial buyers instead use 40% accelerated depreciation and GST input tax credit, plus a state electricity-duty exemption on captive consumption.

What is the UPPCL industrial tariff in FY 2026-27?

UPERC held tariffs flat for the seventh straight year in its July 2026 order. The approved Average Billing Rate is ₹7.97/unit for HV-2 (Large & Heavy Power), ₹9.86/unit for HV-1 (Non-Industrial Bulk) and ₹9.02/unit for LMV-6 (Small & Medium Power), with an unchanged time-of-day structure.

Is rooftop solar still worth it in UP without net metering?

Yes — because the value comes from self-consumption, not export. With industrial tariffs around ₹8–10/unit and a 2 MW rooftop cap, a plant sized to your daytime load typically pays back in 3.5–4.5 years. Export revenue under Solar Injection Compensation is a bonus, not the basis of the design.

Primary Sources

• UPERC (Rooftop Solar PV Grid Interactive System Gross / Net Metering) Regulations, 2019 — Third Amendment (notified)
• UPERC RSPV Regulations, 2019 (consolidated, with amendments) — India Code
• Uttar Pradesh Solar Energy Policy, 2022 — UPNEDA
• Solar Energy Policy 2022 — Invest UP
• UPERC retains FY 2026-27 tariffs; category ABRs and CSS — Power Peak Digest
• No power tariff hike in UP for seventh straight year — Hindustan Times
• UP approves waivers for new rooftop solar consumers (≤10 kW) — Saur Energy
• Uttar Pradesh Power Corporation Limited — tariff details

Related Reading

• Solar EPC in Uttar Pradesh — Industrial Guide
• Green Energy Open Access Rules, 2022 — C&I Buyer's Guide
• UP Open Access Solar Charges, FY 2026-27
• Net Metering Policy in India — Guide
• Solar Panel ROI and Payback Period in India
• Accelerated Depreciation on Solar in India
• How to Size a Solar Plant for Your Factory
• Solar Installation in Greater Noida — Industrial
• Solar Installation in Kanpur — Industrial
• CAPEX vs OPEX vs Open Access Solar in India

---

This guide is informational and reflects the UPERC RSPV Regulations, 2019 (through the 2025 Third Amendment), the Uttar Pradesh Solar Energy Policy, 2022, and the UPERC FY 2026-27 tariff order as on 18 August 2026. Rooftop solar approvals and tariffs are project- and discom-specific — obtain confirmation from your distribution licensee and UPNEDA, and project-specific advice from your electrical and tax advisers, before committing capital.