The Gujarat Electricity Regulatory Commission (GERC) has notified the Grid Interactive Distributed Renewable Energy Sources Regulations, 2026, introducing a capacity limit of 1 MW AC for net metering and net billing projects across Gujarat. Notified on October 30, 2026, under Notification No. 11 of 2026, the new regulations replace the state’s earlier 2016 rooftop solar net metering framework. The minimum permitted capacity under these two arrangements is 1 kW AC, providing a defined regulatory range for residential, commercial and industrial consumers planning grid-connected solar installations.
The new framework establishes five metering arrangements for distributed renewable energy systems: net metering, net billing, gross metering, group net metering and virtual net metering. While net metering and net billing projects are limited to 1 MW AC, gross metering and virtual net metering installations can reach 4 MW AC, subject to technical feasibility and applicable grid connectivity requirements. Group net metering allows consumers to utilise generated electricity across eligible connections owned by the same entity, with capacity permitted up to 1 MW AC.
The regulations also introduce provisions for battery energy storage systems (BESS) for certain installations. Consumers with contracted demand exceeding 100 kW who install renewable energy capacity beyond their contracted demand under net metering, net billing or group net metering must provide battery storage with at least two hours of charging and discharging capability for 50% of the excess capacity. The framework further specifies energy accounting, settlement mechanisms and monitoring requirements, including remote monitoring for distributed renewable energy installations.
For rooftop solar consumers, project developers and EPC companies, the updated regulations provide greater clarity on system sizing, grid connectivity and energy settlement in Gujarat. Distribution licensees are required to develop implementation guidelines and standard operating procedures in accordance with the new framework. The regulations are expected to influence the planning of residential and C&I solar projects, particularly installations seeking to maximise on-site consumption and manage electricity costs through distributed renewable energy.
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