Net metering for solar plants capped at 20 KW

THIRUVANANTHAPURAM: The Renewable Energy Regulations 2025 released on Thursday, has capped the prosumer-friendly net metering facility for domestic solar plants up to 20 KW capacity. Under net metering system, excess energy fed by the prosumer to the grid can be used by them to offset the power they consume from the grid, thereby reducing their overall electricity bill. The regulations, brought out by the Kerala State Electricity Regulatory Commission (KSERC) will be in force till March 31, 2030 and the new billing scheme will be effective from January 1, 2026. The regulations state that all prosumers who submitted feasibility till October 5, 2025 will be treated as existing prosumers. As per the new regulations, net metering can be utilised by domestic solar plants up to 10 KW capacity without the need for any battery storage system. However, plants with capacities from 10 KW - 15 KW and 15 KW - 20 KW will need battery systems that store 10% and 15% energy respectively, to come under net metering. Solar plants of capacity 5 KW and above, seeking feasibility after April 1, 2027, will have to install systems ensuring 10% battery storage to avail net metering. Notably, of the 1.5 crore domestic prosumers, only 17,000 fall in the 5 KW and above solar plant category. Solar prosumers under net metering are allowed to bank excess power generated in a particular month, after deducting other charges, to subsequent months till the end of a financial year. The electricity thus banked will be provided Rs 3.08 per unit for existing prosumers Rs 2.79 per unit for new prosumers at the end of the financial year. The new regulations also allow prosumer under net metering, with solar plant up to 10 KW capacity, to bank excess energy to the grid and to draw it back without paying any grid support charge. However, grid support charge of 50 paisa for first 300 units and H1 for more than 300 units will be levied from prosumers with installed capacity of above 10 KW. Prosumers who have installed battery storage and feed excess power to the grid during evening hours will be provided Rs 7.50 per unit. If power from Electric Vehicles are fed to the grid during evening hours, Rs 10 per unit will be provided. Single phase inverters will be allowed for solar plants up to 5 KW capacity in areas where a phase facility is not available. However, three phase inverters will be mandatory for plants above 3 KW capacity installed after April 1, 2027. As per the new regulations, net metering will be allowed for common service connections in multi-storeyed apartments of up to 500 KW. For the agriculture sector, the ceiling for availing net metering is 3000 KW.