DERC Issues Draft Amendment to Group and Virtual Net Metering Guidelines

The Delhi Electricity Regulatory Commission (DERC) has released draft amendments to the Group Net Metering and Virtual Net Metering Guidelines, 2019, proposing key changes to expand access and ease infrastructure costs for renewable energy consumers across the National Capital Territory of Delhi.

The draft amendment, titled the DERC (Group Net Metering and Virtual Net Metering for Renewable Energy) (Seventh Amendment) Guidelines, 2025, has been notified under provisions of the Electricity Act, 2003, and relevant DERC regulations and guidelines. The amendments will come into effect from the date of upload on the DERC website and remain valid until further revisions.

One of the major proposals is the expansion of the Virtual Net Metering (VNM) framework to all electricity consumers in Delhi, including those with single-point supply connections. This move is expected to widen participation in renewable energy, particularly for consumers unable to install rooftop systems.

The draft also allows consumers under VNM arrangements to modify their electricity credit-sharing ratios or add new participating service connections up to twice in a financial year, subject to a two-month advance notice and the agreed procurement ratio.

Additionally, DERC has proposed a change in energy accounting under VNM. Electricity generation credits will now be considered as having occurred during the normal time block, replacing the earlier provision that accounted such energy during off-peak hours.

Another significant amendment places the responsibility of service line-cum-development (SLD) works and network augmentation costs on distribution licensees for projects under Virtual and Group Net Metering. These costs will be allowed as a pass-through in the Aggregate Revenue Requirement (ARR). However, the waiver will apply only to 11 kV and below networks and will be capped at cumulative capacities of 110 MW for BRPL, 100 MW for TPDDL, 30 MW for BYPL, and 10 MW for NDMC.

The draft further mandates distribution companies to submit quarterly progress reports on Net Metering, Group Net Metering, and Virtual Net Metering projects to the Commission and EE&RM, DoP, GoNCTD.

The draft amendment is open for stakeholder review and is expected to play a key role in accelerating distributed renewable energy deployment in the capital.