India: GERD Notifies 2026 Distributed Renewable Energy Regulations, Introduces Five Metering Options and BESS Requirements in Gujarat

The Gujarat Electricity Regulatory Commission (GERC) has issued the Grid Interactive Distributed Renewable Energy Sources Regulations, 2026, establishing a new regulatory framework for grid-connected distributed renewable energy systems within the state. Released under Notification No. 11 of 2026, these rules supersede the 2016 regulations governing net metering for rooftop solar photovoltaic systems and set out updated requirements for residential, commercial, and industrial users of distributed renewable energy sources (DRES).

Five distinct metering models are now available: Net Metering, Net Billing, Gross Metering, Group Net Metering, and Virtual Net Metering. For both Net Metering and Net Billing, eligible installations may range from 1 kW AC to 1,000 kW AC, or up to 1,250 kWp DC. Gross Metering applies to systems with capacities between 6 kW AC and 4,000 kW AC. Under the Group Net Metering provision, consumers may aggregate electricity generation across multiple service connections held by the same entity and within the same consumer category, subject to a combined capacity limit of 1,000 kW AC.

Virtual Net Metering offers an alternative pathway for the collective adoption of renewable energy, facilitating the sharing of electricity across multiple sites under the purview of a single distribution licensee. Under this framework, systems are permitted to operate within a capacity range of 10 kW AC to 4,000 kW AC, thereby enabling numerous consumers to utilize renewable power produced at a centralized location.

In response to grid stability concerns and the need to manage increased renewable energy generation, the Gujarat Energy Regulatory Commission (GERC) has established mandatory integration requirements for Battery Energy Storage Systems (BESS) for specific categories of consumers. Prosumers whose contract demand exceeds 100 kW and who plan to install Distributed Renewable Energy System (DRES) capacity that surpasses their sanctioned demand are required to incorporate battery storage. These storage systems must be capable of supporting a minimum of two hours of daily charging and discharging cycles, covering at least 50% of the excess DRES capacity.

The new rules set distinct energy settlement frameworks for residential and non-residential users. Under the Net Metering scheme, residential prosumers will see 100% of their exported power offset against grid consumption, with no banking fees applied. If any surplus energy remains at the end of the year after these adjustments, distribution companies will buy it at a rate of ₹2.25 per kWh.

Non-residential consumers face stricter limits. Their energy adjustments are capped at 30% of total imported electricity per billing cycle and must account for applicable banking charges. Any power fed into the grid beyond this permitted threshold will be classified as lapsed energy.

GERC has also outlined specific technical and safety standards for grid-connected installations. All systems must adhere to Central Electricity Authority (CEA) guidelines and the Gujarat Electricity Grid Code. To maintain grid safety, mandatory anti-islanding protection and automatic isolation devices are required. Furthermore, Advanced Metering Infrastructure (AMI) meters equipped with RS-485 ports or advanced communication features will be necessary to monitor electricity flows.

The scope of monitoring obligations is tied to the installed capacity of each project. Facilities with a capacity above 1 MW are required to deploy Remote Terminal Units (RTUs), whereas systems under 1 MW must utilize SIM-based remote monitoring infrastructure.

To facilitate execution, distribution licensees are mandated to create dedicated digital platforms for handling consumer registration, application processing, and approvals within defined timeframes. Connection fees are structured according to system size, starting at ₹1,500 for units between 1 and 6 kW and rising to ₹50,000 for installations up to 4 MW.

Under the new framework, consumers will retain full ownership of any carbon credits generated by their systems. Furthermore, the electricity produced under these regulations will count toward the Renewable Purchase Obligations (RPO) targets of the respective distribution companies.

These measures mark a significant update to Gujarat’s regulatory landscape, establishing new provisions for distributed renewable energy generation, power sharing mechanisms, battery storage integration, and grid interconnection across various consumer segments.