The Punjab State Electricity Regulatory Commission (PSERC) has proposed significant amendments to its rooftop solar framework to liberalize the sector, expand capacity limits, and introduce new net metering models. These reforms aim to address regulatory bottlenecks, encourage wider participation in distributed solar generation, and help the state meet its Renewable Purchase Obligation (RPO) targets. The proposed changes update existing regulations from 2021 and subsequent years, which stakeholders found to have certain restrictions limiting rooftop solar adoption.
Key challenges identified in the current framework included a restriction limiting rooftop solar generation to 90% of a consumer’s consumption within a settlement period. Capacity limits were also capped at 70% of sanctioned load or contract demand for certain consumer categories. Furthermore, the absence of regulatory provisions for Group Net Metering (GNM) and Virtual Net Metering (VNM) prevented tenants, apartment residents, and consumers without suitable rooftop space from participating. Projected shortfalls in Renewable Purchase Obligation compliance in the coming financial years also reinforced the need to expand distributed renewable capacity within the state.
To address these issues, the draft regulations propose three new rooftop solar models: Group Net Metering (GNM), Virtual Net Metering (VNM), and Behind-the-Meter (BTM) Solar Systems. Each model includes defined eligibility conditions and structured energy settlement mechanisms. This will enable broader participation across residential, commercial, and institutional consumers.
Under the proposed amendments, rooftop solar capacity can be installed up to 100% of sanctioned load or contract demand, replacing earlier restrictive thresholds. The previous 90% annual consumption cap on solar generation is also proposed to be removed. This is expected to allow consumers to maximize self-generation and improve financial viability.
Any unadjusted surplus energy at the end of the settlement period will be compensated at 75% of the approved feed-in tariff. Payments for surplus energy must be made within a defined timeline. Delays in payment will attract interest linked to benchmark lending rates. While certain charges such as banking charges, cross-subsidy surcharge, and additional surcharge may be exempted for specific rooftop solar arrangements, wheeling charges and applicable transmission losses will continue to apply. Consumers will be permitted to opt for only one metering arrangement to ensure clarity and streamlined billing.Existing solar prosumers will be allowed to migrate to the newly introduced GNM or VNM models, subject to fresh agreements. The draft also clarifies that tripartite agreements among distribution licensees, consumers, and renewable energy service companies will not be permitted. Disputes between consumers and service providers will not impact grid connectivity, ensuring uninterrupted power supply.
In a related move, amendments have also been proposed to captive power generation regulations, particularly concerning energy banking provisions for renewable-based captive projects. This indicates a broader renewable energy push by the state.
The proposed reforms are expected to significantly liberalize Punjab’s rooftop solar ecosystem. By removing restrictive caps, introducing flexible metering mechanisms, and broadening eligibility, the state aims to accelerate distributed solar adoption. The amendments reflect a structured effort to strengthen renewable energy integration, enhance consumer participation, and reduce reliance on conventional power sources while improving compliance with renewable energy obligations.
The Punjab State Electricity Regulatory Commission (PSERC) has proposed significant amendments to its rooftop solar framework aimed at liberalizing the sector, expanding capacity limits, and introducing new net metering models. The proposed reforms are designed to address regulatory bottlenecks, encourage wider participation in distributed solar generation, and help the state meet its Renewable Purchase Obligation (RPO) targets.
The draft amendments seek to update the existing rooftop solar regulations introduced in 2021 and revised in subsequent years. While earlier provisions aligned with national guidelines, stakeholders highlighted certain restrictions that limited rooftop solar adoption.
The review of the current framework identified several barriers. A restriction limiting rooftop solar generation to 90% of a consumer’s consumption within a settlement period was noted. Capacity limits capped at 70% of sanctioned load or contract demand for certain consumer categories were also identified. The absence of regulatory provisions for Group Net Metering (GNM) and Virtual Net Metering (VNM) was a significant barrier, preventing tenants, apartment residents, and consumers without suitable rooftop space from participating.
Additionally, projected shortfalls in Renewable Purchase Obligation compliance in the coming financial years have reinforced the need to expand distributed renewable capacity within the state.
To address these issues, the draft regulations propose three new rooftop solar models: Group Net Metering (GNM), Virtual Net Metering (VNM), and Behind-the-Meter (BTM) Solar Systems. Each model includes defined eligibility conditions and structured energy settlement mechanisms, enabling broader participation across residential, commercial, and institutional consumers.
Under the proposed amendments, rooftop solar capacity can be installed up to 100% of sanctioned load or contract demand, replacing earlier restrictive thresholds. The previous 90% annual consumption cap on solar generation is proposed to be removed. This is expected to allow consumers to maximize self-generation and improve financial viability.
The draft framework proposes that any unadjusted surplus energy at the end of the settlement period will be compensated at 75% of the approved feed-in tariff. Payments for surplus energy must be made within a defined timeline. Delays in payment will attract interest linked to benchmark lending rates. While certain charges such as banking charges, cross-subsidy surcharge, and additional surcharge may be exempted for specific rooftop solar arrangements, wheeling charges and applicable transmission losses will continue to apply. Consumers will be permitted to opt for only one metering arrangement to ensure clarity and streamlined billing.
Existing solar prosumers will be allowed to migrate to the newly introduced GNM or VNM models, subject to fresh agreements. The draft also clarifies that tripartite agreements among distribution licensees, consumers, and renewable energy service companies will not be permitted. Disputes between consumers and service providers will not impact grid connectivity, ensuring uninterrupted power supply.
In a related move, amendments have also been proposed to captive power generation regulations, particularly concerning energy banking provisions for renewable-based captive projects. This signifies a broader strategic push toward renewable targets.
The proposed reforms are expected to significantly liberalize Punjab’s rooftop solar ecosystem. By removing restrictive caps, introducing flexible metering mechanisms, and broadening eligibility, the state aims to accelerate distributed solar adoption. The amendments reflect a structured effort to strengthen renewable energy integration, enhance consumer participation, and reduce reliance on conventional power sources while improving compliance with renewable energy obligations.
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