GERC Draft Distributed Renewable Energy Sources (DRES) Regulations, 2026
One regulation that replaces the decade-old Net Metering 2016 rules and brings five metering mechanisms — Net Metering, Net Billing, Gross Metering, Group Net Metering and Virtual Net Metering — under a single framework open to every consumer category, including C&I.
What this draft does
A single, consolidated rulebook for rooftop and distributed renewables in Gujarat.
The draft repeals the GERC (Net Metering Rooftop Solar PV Grid Interactive Systems) Regulations, 2016 and all its amendments. In their place it creates a wider “Distributed Renewable Energy System” (DRES) framework covering any renewable source — with or without battery storage — connected to the distribution network at 33 kV and below.
Crucially, it opens five distinct metering mechanisms to all consumer categories, including commercial and industrial, where the old regime was built mainly around residential rooftop net metering. It also formalises the RESCO (third-party ownership) model and aligns charges with the GERC Green Energy Open Access Regulations, 2024.
⚠ This is a draft, not yet in force
The Commission has published this draft for stakeholder comments. Capacity limits, charges and exemptions below reflect the draft text and may change before notification. Track the consultation and submit comments via the GERC portal.
Impact on consumers
How the DRES draft changes the picture for each consumer category.
Commercial
- All five mechanisms now open to you
- On-site systems are wheeling-exempt
- Exports adjust only up to 30% of drawn units — the rest lapses
- CSS & AS apply unless captive-compliant (25% rebate if the DISCOM keeps the RE attribute)
Industrial
- Large rooftops welcome
- Oversizing above 100 kW contract demand needs BESS (2-hour, ≥50% of excess)
- Captive structuring avoids CSS & AS
- Gross metering sells full output at the generic tariff; wind capped at 50 kW
Residential
- The most favourable category
- Full kWh netting — no 30% cap, no banking charges
- Surplus bought by the DISCOM at ₹2.25/unit
- RESCO up to 2 kW exempt from CSS & AS; keep 100% of carbon credits
Government
- Deploy DRES across departments and PSU buildings
- Capacities above 1 MW via alternative arrangements
- GNM/VNM offset many connections from one site
- Useful for offices, schools and water works
Hospitals
- 24×7 load makes self-consumption efficient
- Net metering / net billing offsets daytime demand
- Co-located BESS adds the reliability hospitals need
- Oversizing follows the same 2-hour BESS rule
Five metering mechanisms in one regulation
Each consumer connection may use only one mechanism at a time, and may switch (subject to limits).
Net Metering
Exported units are netted against imported units (kWh-for-kWh) in the same billing cycle via a single bidirectional meter. Net surplus is paid at the Surplus Injection Rate or lapses.
1 kW – 1,000 kW (AC)Net Billing
Import valued at retail tariff, export valued at the Commission’s generic RE tariff (fixed for the project’s life from its commissioning year). The two are netted in money terms.
1 kW – 1,000 kW (AC)Gross Metering
Entire DRES generation is sold to the DISCOM at the generic RE tariff and adjusted against the consumer’s total bill; surplus money carries forward as credit.
1 kW – 4,000 kW (AC)Group Net Metering
Surplus from one DRES is adjusted across multiple connections of the same consumer (same name, same tariff category, same DISCOM area) per an allocation ratio.
6 kW – 1,000 kW (AC)Virtual Net Metering
Entire generation injected at a remote site is allocated across multiple participating consumers of the same tariff category and DISCOM. Connects at 11/22 kV with delivery at a 66 kV GETCO sub-station.
100 kW – 4,000 kW (AC)One connection, one mechanism
No connection can sit under two mechanisms at once. NM/NB/GNM consumers can switch mechanisms up to three times over the project life, once per financial year with 30 days’ notice. VNM and Green Energy Open Access are mutually exclusive.
Capacities & eligibility
From the draft summary table (Clause 8.7).
| Mechanism | Minimum | Maximum | Eligible categories |
|---|---|---|---|
| Net Metering (NM) | 1 kW | 1,000 kW | All categories |
| Net Billing (NB) | 1 kW | 1,000 kW | All categories |
| Gross Metering (GM) | 1 kW | 4,000 kW | All categories |
| Group Net Metering (GNM) | 6 kW | 1,000 kW | Same name, same tariff category, same DISCOM area |
| Virtual Net Metering (VNM) | 100 kW | 4,000 kW | Same tariff category, same DISCOM area |
⚠ The BESS trigger for oversized systems
For NM, NB, GNM and VNM: where a consumer with contract demand above 100 kW installs DRES capacity exceeding their contract demand (or, for VNM, the aggregate participating demand), that excess is allowed only if the DRES includes BESS of at least 2 hours per charge/discharge cycle covering at least 50% of the excess capacity. Wind turbines as part of DRES are capped at 50 kW under NM/NB/GM/GNM.
Charges, banking & the 30% adjustment cap
What changes for commercial and industrial prosumers and RESCO arrangements.
On-premises NM / NB / GM
Self-owned or RESCO-owned DRES on the prosumer’s own premises is exempt from wheeling charges and losses. Banking charges apply on exported energy offset against grid consumption (per the GEOA Regulations 2024), except for residential (RGP) connections which are exempt.
RESCO under GNM / VNM
Participating connections attract wheeling charges, wheeling losses, banking charges, Cross Subsidy Surcharge (CSS) and Additional Surcharge (AS) — unless captive criteria are met. Residential participants with allocation up to 2 kW are exempt from CSS & AS.
The 30% in-cycle cap
For non-residential prosumers, exported energy can be adjusted only up to 30% of total energy drawn from the DISCOM in that billing period. Excess beyond 30% is treated as lapsed energy. Banked energy must be used within the same billing cycle — no carry-forward.
CSS / AS concession
Where DRES doesn’t meet captive criteria, CSS & AS apply — but a consumer who lets the DISCOM keep the RE attribute for RPO compliance can claim a 25% concession on CSS & AS (or as set in the relevant tariff order).
ToD, RPO and carbon credits
Time-of-Day adjustment
Energy exported in peak hours can offset peak and off-peak consumption; energy exported in off-peak hours offsets only off-peak consumption. GNM/VNM banking is settled on a 15-minute time-block basis.
Who gets the RPO?
Under Gross Metering, the entire generation counts towards the DISCOM’s RPO. Under NM/NB/GNM/VNM, self-consumed RE counts to the DISCOM’s RPO only if the consumer is not an obligated entity or doesn’t claim it. Surplus bought by the DISCOM always counts to its RPO.
Carbon credits stay with you
100% of gross carbon-credit proceeds are retained by the DRES prosumer.
Storage & hybrids
BESS as part of DRES will be governed by the Commission’s forthcoming BESS regulation. Hybrid DRES (two or more RE sources) is integrated at AC level only, with separate metering for each source.
From 2016 to today
- 2016GERC Net Metering Rooftop Solar PV Grid Interactive Systems Regulations notified — residential-centric net metering.
- 2024GERC Green Energy Open Access Regulations, 2024 set the charges framework now cross-referenced by DRES.
- 15 May 2026Draft DRES Regulations 2026 published — five mechanisms, all categories, RESCO model, BESS triggers.
- Now · consultationStakeholder comments invited. Capacities, charges and exemptions may change before notification.
- On notificationNet Metering 2016 stands repealed; DRES 2026 governs all applications received on or after the notification date.
Quick answers
Can a C&I consumer install more solar than their sanctioned load?
What happens to my exported units beyond the 30% cap?
Is wheeling free for my factory rooftop?
Can I do Virtual Net Metering and Green Energy Open Access together?
Who keeps the renewable RPO benefit?
Modelling a rooftop or open-access project under these rules?
The DRES draft reshapes the economics of every C&I solar decision in Gujarat — capacity caps, the 30% adjustment limit, banking and CSS/AS all move the number. GEOA.in tracks the consultation and runs the math.
View the GERC draft & submit comments →Source: Draft GERC (Grid Interactive Distributed Renewable Energy Sources) Regulations, 2026, published by the Gujarat Electricity Regulatory Commission, Gandhinagar, 15 May 2026. Full draft and consultation details at gercin.org. This explainer is for information only and is not legal advice; refer to the official regulation for binding text.