APERC Draft Amendment Aims to Strengthen Rooftop Solar with Net Metering Reforms

The Andhra Pradesh Electricity Regulatory Commission (APERC) has issued a revised draft amendment to its 2023 regulations governing grid-interactive rooftop solar photovoltaic systems under net and gross metering.

The draft reflects the state government’s Integrated Clean Energy (ICE) Policy, 2024, which seeks to establish Andhra Pradesh as a clean energy hub with a target of achieving 50 per cent of cumulative power capacity from non-fossil sources by 2030 and net-zero emissions by 2047.

Unveiled in October last year, the ICE Policy outlines a comprehensive strategy for scaling up renewable energy generation, including solar, wind, hybrid and pumped storage projects. It also focuses on democratising energy generation through schemes such as the PM Surya Ghar Yojana and PM-KUSUM, and projects an investment inflow of nearly INR 10 lakh crore that could create around 7.5 lakh jobs. The policy further emphasizes green hydrogen development, the setting up of Renewable Economic Zones, skill development initiatives, and simplified clearances to attract clean energy investments.

Following directions from the state government under Section 108 of the Electricity Act, 2003, the regulator has moved to revise the rooftop solar framework. The revised draft amendment, first released in March 2025 and now updated, introduces significant reforms aimed at expanding consumer participation and streamlining processes.

One of the key changes is the formal introduction of Virtual Net Metering, allowing housing societies and groups of consumers to share the benefits of rooftop solar generation, with energy credits apportioned according to each member’s contribution. Similarly, Group Net Metering provisions will enable individual prosumers with multiple electricity connections to offset generation against consumption across those connections. Both mechanisms also provide for time-of-day tariff adjustments, ensuring fairer credit allocation.

The draft also formally recognizes the role of Distributed Energy Resource Aggregators (DERAs). These entities will work under commercial agreements with distribution companies to facilitate rooftop solar adoption by managing installations, handling subsidies, empanelling vendors and ensuring compliance. In turn, aggregators will receive a service fee for their role.

The application process for rooftop solar projects has also been streamlined, with consumers now able to submit applications through DISCOM websites, designated Mee Seva centres, or the national rooftop solar portal. A revised fee structure has been proposed, with no fee for systems up to 5 kWp and scaled charges for larger capacities, reaching INR 25,000 per megawatt for projects above 1 MW.

Consumers are required to submit agreements within four months of receiving technical feasibility approval, failing which applications will be deemed cancelled. Behind-the-meter systems that do not export power to the grid are permitted, but must meet technical standards set by the Central Electricity Authority and be reported to the DISCOM. Non-compliant systems may face disconnection, while existing installations are given 60 days to comply with the updated standards.

APERC has said that the revised draft seeks to balance efficiency, consumer participation and environmental responsibility while supporting the state’s ambitious renewable energy goals. The draft amendment has been published for stakeholder comments and suggestions, and the regulator will finalise the regulations after the consultation process, before publishing them in the Andhra Pradesh Gazette.