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MNRE Advises DISCOMs to Allow 10 Percent DC Capacity Tolerance for Rooftop Solar Net Metering

The Ministry of New and Renewable Energy has advised DISCOMs to allow up to 10 percent DC capacity tolerance for rooftop solar systems under the PM Surya Ghar: Muft Bijli Yojana, provided the inverter's AC capacity remains within the sanctioned load or permissible limit.

July 29, 2026. By Mrinmoy Dey

The Ministry of New and Renewable Energy (MNRE) has issued an advisory asking distribution companies (DISCOMs) and Electricity Departments to permit a capacity tolerance of up to 10 percent in the DC capacity of rooftop solar systems while processing net metering applications under the PM Surya Ghar: Muft Bijli Yojana (PMSG: MBY).

The advisory, issued in March 2026, aims to address delays caused by the rejection of applications where the installed solar module capacity marginally exceeds the sanctioned load or permitted inverter AC capacity.

The advisory follows representations received from vendors and vendor associations highlighting that several DISCOMs were returning net metering applications due to minor differences between the total DC capacity of solar modules and the inverter's AC capacity. For instance, applications involving 3.24 kW DC solar panels paired with a 3.0 kW inverter were reportedly being rejected, resulting in unnecessary delays in commissioning rooftop solar projects.

After examining the issue, MNRE noted that variations in commercially available solar module wattages make it difficult to precisely match the total DC capacity of solar modules with the sanctioned load or the permissible inverter AC capacity prescribed under prevailing regulations.

To address this practical challenge, the ministry has recommended that DISCOMs allow a DC capacity tolerance of up to 10 percent over the applied system capacity, provided that the AC capacity of the inverter does not exceed the sanctioned load or the maximum inverter capacity permitted under applicable regulations.

The ministry illustrated the provision through examples. For a consumer eligible to install a 5 kW rooftop solar system using 540 Wp solar modules, either nine modules (4.86 kW DC) or ten modules (5.40 kW DC) may be installed, as both configurations remain within the 10 percent tolerance limit. However, the inverter capacity must remain restricted to 5 kW AC. Similarly, for a 10 kW rooftop solar system, consumers may install either 18 modules (9.72 kW DC) or 19 modules (10.26 kW DC), while the inverter capacity must not exceed 10 kW AC.

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