18 States and UT’s adopt Group and Virtual Net Metering for Rooftop Solar

What if adopting rooftop solar energy did not necessarily require owning a rooftop or managing a separate system for each property? With Group Net Metering (GNM) and Virtual Net Metering (VNM), this is a real solution in 18 Indian states and UT’s. These solutions are transforming how businesses, communities, educational institutes, organizations and households in India access renewable energy, making solar power more accessible and impactful. Whether you are a commercial property owner managing multiple facilities or the tenant 

Understanding Group and Virtual Net Metering

As India transitions to renewable energy, decentralized energy production has become crucial. GNM and VNM are two innovative metering mechanisms that enhance solar power adoption by effectively utilizing the available roof space. . This blog delves into these metering mechanisms and its application in context to Commercial and Industrial (C&I) consumers, explores case studies, and examines the states that have implemented or are piloting these initiatives. 

Group Net Metering (GNM): Streamlining Multi-Property Solar Integration

The GNM mechanism is primarily designed for organizations with multiple electricity accounts under the same ownership, allowing them to install rooftop solar on one main “host” property having a larger roof space and distribute excess energy credits to their other properties within the same distribution licensee. For example, a municipal body could use GNM to offset energy costs across its various facilities, like schools and libraries. This model is limited to consumers who manage multiple accounts within a single entity, such as municipal corporations or businesses with several properties.

Figure 1 – Representative schematic for Group Net Metering

Case Study: Group Net Metering at Sri Aurobindo International Centre of Education (SAICE), Pondicherry

The Sri Aurobindo International Centre of Education (SAICE) in Puducherry implemented a project to optimize energy use through rooftop solar taking advantage of the available GNM mechanism.

Initially, SAICE installed a 17kW grid-connected rooftop solar system to satisfy the electricity requirements for the host facility. With the adoption of GNM, the host facility  was able to upgrade the installation with an additional 33kW rooftop solar system. This enabled the host facility to export the excess units and offset consumption across other SAICE-owned buildings within the same jurisdiction.

The GNM policy enabled SAICE in achieving substantial electricity cost savings and a reduced carbon footprint. This initiative serves as a model for educational institutions, demonstrating the benefits of a phased approach to rooftop solar adoption—from energy efficiency and initial solar installation to a scaled-up system using GNM. Through this project, SAICE has set a precedent for sustainable energy practices in education, showcasing how regulatory frameworks like GNM can support institutions in optimizing renewable energy use and achieving self-reliance in electricity consumption.

Virtual Net Metering (VNM): Extending Solar Access Beyond Rooftops

Virtual net metering allows the export of the entire energy output from a rooftop solar  system to be fed into the grid and distributed among multiple electricity connections of participating consumers within the jurisdiction of the same distribution licensee. The distribution among participating consumers is based on a pre-decided sharing priority.

Figure 2 Representative schematic for Virtual Net Metering

VNM can be deployed for a larger set of consumers as displayed in the table below.

Table 1 – Various combination for which VNM can be deployed

Case study for VNM on residential locality in Delhi

Comparing GNM and VNM

While GNM is designed for a single owner with multiple properties, VNM allows users who do not own or have the rights to make structural changes to rented and leased properties to share a remote solar system’s output. VNM offers more flexibility providing an equally viable solution to reduce electricity expenses on a monthly basis. Both models are subject to regional policies and utility regulations, which influence their implementation.

Benefits of Group and Virtual Net Metering

• • Resource Optimization: These metering mechanisms make effective use of rooftop space, particularly in densely populated or high land-cost areas.

• • Cost-Efficiency: By aggregating energy credits, GNM and VNM can reduce electricity costs across multiple accounts, making larger renewable projects financially viable.

• • Increased Accessibility: VNM opens renewable energy access to consumers without independent rooftop access, such as tenants in urban areas.

• • Grid Decongestion and Flexibility: Distributed energy production helps reduce the pressure on centralized grids, improving grid stability and lowering transmission losses.

Key Challenges and Policy Considerations

While GNM and VNM present substantial benefits, their implementation has been met with certain challenges:

• • Regulatory Hurdles: States must ensure that existing net metering policies are updated to allow GNM and VNM. This requires clear guidelines on energy credit allocation, interconnection standards, and billing adjustments.

• • DISCOM Challenges: DISCOMs may resist implementing these mechanisms due to potential revenue loss and logistical complexities in credit allocation across multiple accounts.

• • Awareness and Participation: Both mechanisms require consumers to understand the financial and operational benefits. Increasing awareness within and through government programs and incentives is essential to drive participation, particularly in rural and semi-urban areas.

State policies:  As of November 2024. 18 states and UT’s have introduced the regulation for facilitating adoption of GNM and VNM mechanisms for consumption of solar energy generated through a grid-interactive rooftop solar system. 

Table 2 – Indian states and UT’s that have adopted GNM or VNM for rooftop solar installations