Law Updates

Subject

Summary: On 16 July 2026, the Delhi Electricity Regulatory Commission (DERC) issued the Second Amendment to its Net Metering Guidelines. Those of you who have gone through the rooftop solar installation process in Delhi know all too well how difficult it was. There was always so much paperwork involved, and physical meetings were a must. The DERC Net Metering Guidelines 2026 change that. This amendment empowers small domestic consumers by removing fees and streamlining steps, making rooftop solar more accessible and less daunting. This article breaks down what changed, why it changed, and what it means for you, whether you're a homeowner, a business, a solar installer, or a compliance professional. Clear language and step-by-step guidance aim to make you feel more confident and supported in navigating the new process. What is Net Metering and How Does It Work? Rooftop solar means installing solar panels on your roof to generate electricity from sunlight. Most homes and businesses don't use all the power they generate during the day, especially when nobody is home or machines are idle. This unused electricity doesn't have to go to waste, it can be sent back into the shared electricity network, known as the grid, and credited to your account. Net metering is the system that makes this exchange possible. Here's what it involves: The grid is the shared electricity network that supplies power to your area and receives any surplus power you generate. The net meter is a special meter that tracks both directions of electricity flow, how much you draw from the grid and how much you send back to it. Extra electricity refers to the solar power your system produces that you don't use immediately and that flows automatically into the grid. Electricity credits are the value assigned to the power you export, adjusted against what you consume from the grid. Billing adjustment happens at the end of each cycle, when your consumption and export are compared to determine your net usage. At the end of your billing cycle, only the net electricity you drew from the grid is billed. If you exported more than you consumed, the surplus can either reduce your bill or roll over as credit, depending on your DISCOM's policy. This is what makes net metering valuable, it rewards you for generating clean energy, even during hours when you aren't around to use it yourself. Background of the DERC Net Metering Framework To understand why the 2026 amendment matters, it helps to know where the rules came from. DERC (Net Metering for Renewable Energy) Regulations, 2014: This was the original framework that allowed Delhi consumers to install rooftop solar and connect it to the grid through net metering. First Amendment Guidelines, 2025: It offered some fee concessions and initial process changes, but in essence the approval process remained largely paper-based. PM Surya Ghar: Muft Bijli Yojana: It is a major program of the Central Government aimed at encouraging rooftop solar installations in homes through subsidies and a national portal. Under the earlier system, applicants had to go through a three-tier process: Feasibility Analysis, Registration, and a separate Connection Agreement. Each stage required its own paperwork and waiting period. The new guidelines streamline these steps, so stakeholders should now follow the simplified two-stage process-Technical Feasibility and the Integrated Stage-making it clearer what actions are needed and when. The problems this created were well known among applicants and installers alike: Multiple separate approvals meant multiple opportunities for delay. Physical documents and, in some cases, physical signatures were needed for the Connection Agreement. Deficiencies in an application were sometimes flagged one at a time, forcing applicants to make repeated corrections rather than fixing everything at once. The problems this created were well known among applicants and installers alike: Multiple approvals meant delays. The new guidelines cap timelines at 25 days for systems above [10 kW], ensuring greater predictability and trust in the process. Small residential systems underwent the same rigorous process as large commercial installations. These friction points slowed down solar adoption in Delhi, even though demand for rooftop solar, pushed by rising electricity costs and the PM Surya Ghar subsidy, kept growing. Why DERC Introduced the 2026 Amendment Too Many Separate Stages The earlier three-tier process meant an applicant could clear feasibility and registration, only to be stuck waiting on a separate connection agreement. DERC merged the process into two stages: Technical Feasibility and an Integrated Stage covering verification, inspection, and installation. Fewer handoffs between departments means fewer chances for a file to sit untouched. No Single Route for Different Types of Consumers Domestic consumers using the PM Surya Ghar scheme and commercial or industrial consumers were not clearly distinguished in the process, causing confusion about which portal to use. To reduce confusion, the amendment clearly identifies two routes: Route A for domestic consumers under the PM Surya Ghar scheme and Route B for commercial and industrial consumers. This clarity helps applicants feel more in control from the start. Applicants know exactly which portal to use from day one. Silence from DISCOMs Caused Indefinite Delay If a DISCOM didn't respond on feasibility within the expected time, applicants had no clear fallback. A deemed approval clause was introduced, if the DISCOM doesn't respond within 15 days, feasibility is automatically treated as granted. Applicants are no longer held hostage to administrative inaction thanks to the deemed approval clause, but they must still ensure timely submission of complete applications and respond promptly to deficiency notices to maintain compliance and avoid delays. Deficiencies Were Flagged Piecemeal An applicant might fix one issue, only to be told about a second issue a week later, and then a third. DERC now requires a single, consolidated deficiency notice. Applicants get the full picture at once and can fix everything in one go. Physical Paperwork Slowed Down the Connection Agreement Signing a physical agreement meant printing, signing, and submitting documents in person or by post. The Connection Agreement is now fully digital, with a tick-box for small domestic systems and e-signature or digital signature for larger or non-domestic systems. No more waiting on courier timelines or office visits to sign a form. Key Highlights of the Amendment Two-Stage Process Replaces the Three-Tier System The old feasibility, then registration, then connection agreement structure is now just two stages. Technical Feasibility and an Integrated Stage that covers verification, inspection, and installation. Fewer checkpoints mean fewer opportunities for a file to get stuck. Route A and Route B for Applicants Route A is for domestic consumers applying under PM Surya Ghar through the National Portal. Route B is for everyone else- non-domestic, commercial, industrial consumers, and domestic consumers not using the subsidy scheme- via the DISCOM or Delhi State Portal. Businesses now have a dedicated pathway separate from the subsidy-driven residential process. Fully Online, Time-Bound Approvals The entire process, from the connectivity application, must be completed online, with no physical or offline forms. Feasibility is to be done within 15 days; if not done within this period, the DISCOM is said to have approved it. Systems below 10 kW do not go through this stage. Stage II: Verification, Inspection, and Net Meter Installation needs to be done within 10 days. The entire process has to be done within 25 days (if more than 10 kW) or 10 days (if up to 10 kW), not counting the time taken by the applicant. Single Consolidated Deficiency Handling All deficiencies or defects must be raised in a single notice, not across multiple rounds. Applicants get 15 days to cure issues, after which the DISCOM completes the process in 5 more days. Minor deviations that don't affect safety or grid compatibility can no longer be used to delay approval. Digital Connection Agreement The agreement is executed digitally at the time of Stage II submission, no separate physical document is required. Domestic consumers up to 10 kW use a simple tick-box; everyone else uses an e-signature or a digital signature. Fee Waivers for Small Domestic Systems No Application Fee or Registration Charges apply to domestic consumers installing rooftop solar up to 10 kW, whether or not they use the PM Surya Ghar subsidy. This removes a key financial barrier for the average household considering solar. Section-wise Analysis Amendment Earlier Rule New Rule Business Impact Guideline 3 - Process Structure Three-tier process: Feasibility, Registration, Connection Agreement Two-stage process: Technical Feasibility & Integrated Verification/Inspection/Installation Faster, simpler approvals Application Routes No formal route split Route A (PM Surya Ghar) and Route B (all other consumers) Clear pathway depending on consumer type Feasibility Timeline Timeline existed, weak fallback 15 days, deemed approval on DISCOM silence, skipped entirely up to 10 kW Predictability and automatic protection Stage II Timeline No combined timeline 10 days for integrated verification, inspection, and installation Faster net meter activation Deficiency Handling Could be raised in multiple rounds Single consolidated notice, 15 days to cure Fewer rounds of correction Minor Deviations Could be treated as a deficiency Cannot delay approval if safety/grid unaffected Reduces unnecessary rejections Outer Timeline No firm cap 25 days (above 10 kW) / 10 days (up to 10 kW) Time-bound certainty Connection Agreement Physical execution Digital: tick-box or e-signature Removes paperwork and visits Fees Charged with limited exemptions Waived for domestic systems up to 10 kW Lower cost of entry Old Process vs New Process Parameter Old Process New Process Number of Stages 3 (Feasibility, Registration, Agreement) 2 (Feasibility, Integrated Stage) Application Mode Mixed online/offline Fully online, end-to-end Feasibility for ≤10 kW Required Deemed approved, no analysis needed Deficiency Notices Could be issued in multiple rounds One consolidated notice only Connection Agreement Physical signature Digital tick-box or e-signature Application Fee (≤10 kW domestic) Chargeable Waived Registration Charges (≤10 kW domestic) Chargeable Waived Physical Visits Often needed Not required Outer Time Limit Not clearly capped 25 days (>10 kW) / 10 days (≤10 kW) Consumer Effort Higher, multiple submissions Lower, single integrated submission Complete Approval Process Choose your route. Domestic PM Surya Ghar applicants use Route A (National Portal), all other consumers use Route B (DISCOM portal or Delhi State Portal). Submit the application online. No physical forms are accepted under the amended guidelines. DISCOM reviews technical feasibility. This applies only to systems above 10 kW or those on a different supply type, smaller domestic systems skip this. Feasibility outcome within 15 days. If the DISCOM doesn't respond within the time frame, feasibility is deemed granted automatically. Install the rooftop solar system. The applicant installs the system after feasibility is granted or deemed granted. Submit registration documents and Single Line Diagram. This is done through the applicable online portal. DISCOM conducts the integrated Stage II review. Document verification, physical inspection, and testing happen together, within 10 days. Net meter is installed and registration number assigned. This happens as part of the same integrated stage, along with grant of connectivity. Digital Connection Agreement is executed, tick-box for domestic systems up to 10 kW, e-signature or digital signature for others. Connectivity is granted. The consumer can now use net metering and start receiving credit for exported electricity. If deficiencies exist, they are communicated once in a single notice, and the applicant has 15 days to fix them, after which the DISCOM completes the remaining steps within 5 more days. Implementation Timeline Activity Timeline Responsible Authority Notes Technical Feasibility Analysis 15 days Distribution Licensee (DISCOM) Deemed approved if missed, not required up to 10 kW System Installation As per applicant's schedule Applicant Time excluded from DISCOM's outer limit Stage II (Verification, Inspection, Installation) 10 days DISCOM Runs from date of electronic acknowledgement Deficiency Cure Period 15 days Applicant Applies only if a deficiency notice is issued Post-Cure Completion 5 days DISCOM After applicant resolves deficiencies Overall Cap (above 10 kW) 25 days DISCOM Excludes applicant-side time Overall Cap (up to 10 kW) 10 days DISCOM No feasibility stage required Guideline Applicability From 16 July 2026 DERC Applies to pending and new applications alike Scope and Applicability Domestic consumers: Apply under Route A (beneficiaries of PM Surya Ghar Scheme) and also under Route B (Non-Scheme Domestic Consumers). Commercial consumers: Apply under Route B using DISCOM/Delhi State Portal. Industrial consumers: Apply under Route B and have the same time for integrated approvals. Consumers belonging to Government & Institutional category: Apply under Route B except for cases where there is a specific scheme. Beneficiaries of PM Surya Ghar Scheme: Should apply under Route A through the National Portal, and fee waivers are applicable till 10 kW. Compliance Requirements Compliance Checklist: Apply through the correct portal: National Portal for Route A and DISCOM/Delhi State Portal for Route B. Prepare a Single-Line Diagram showing the connection between your solar system and the existing wiring. Keep proof of ownership or occupancy of the premises ready. Ensure the installed system matches safety and grid-compatibility standards. Document Submission and Connection Agreement signing must be completed electronically. Monitor the feasibility and timelines of Stage II for knowledge on how to apply for deemed approval. Respond to any deficiency notice within 15 days. Common mistakes to avoid: Incomplete Single Line Diagrams submitted resulting in deficiency notice issuance. Physical documents being submitted as they are no longer required per the amended process. Failing to meet the 15 days for a deficiency notice. Applying through the wrong route (for example, a commercial consumer mistakenly using the National Portal meant for Route A). Responsibilities of DISCOMs Complete technical feasibility analysis within 15 days or let it be deemed granted. Process Stage II verification, inspection, testing, meter installation, registration, and connectivity within 10 days in one process. Only one consolidated notice regarding deficiencies or defects shall be issued, not multiple. Do not make minor non-safety deviations an excuse for delay. The digital Connection Agreement process must be made available through the portal. Application fees and registration fees should be waived for qualified domestic consumers up to 10 kW. Keep the entire process online, without requiring offline or physical submissions. Responsibilities of Applicants Choose the correct route based on consumer category. Submit a complete and accurate application to avoid feasibility delays. Install the rooftop solar system only after feasibility is granted or deemed granted. Upload the Single Line Diagram and all required documents through the portal. Execute the digital Connection Agreement at the time of Stage II submission. Cure any flagged deficiency within 15 days. Retain digital copies of all submissions and approvals for future reference. Impact on Stakeholders Residential Consumers Fee waivers up to 10 kW and deemed feasibility approval make solar more affordable and accessible for the average household. A fully digital process removes the need for paperwork or office visits, encouraging faster adoption of small rooftop systems. First-time applicants may still need some guidance to navigate the online documentation requirements. Commercial Establishments A defined 25-day outer cap on approval gives businesses clear visibility for planning solar investments. Larger systems still undergo full technical feasibility assessment, so documentation accuracy plays a greater role in avoiding delays. Predictable timelines are likely to encourage more commercial properties to consider rooftop solar. Industrial Units The integrated Stage II reduces coordination overhead between feasibility, inspection, and connection steps. Industrial systems often involve more complex Single Line Diagrams that require careful preparation before submission. Simplified approvals support captive solar generation as part of broader energy cost management strategies. MSMEs Lower administrative burden makes solar a realistic option even for businesses with limited compliance resources. Some MSMEs may need external support to navigate the online portal and technical documentation smoothly. Faster approvals translate directly into quicker cost savings from self-generated power. EPC Companies Predictable, time-bound approvals allow EPC companies to commit to firmer project delivery timelines for clients. Installations must strictly match submitted technical documents to avoid triggering a deficiency notice. Streamlined approvals are likely to support higher project volumes in the future. Consultants and Compliance Professionals A clearer, rule-bound process makes it easier to advise clients accurately and confidently. Professionals need to stay current on portal-specific procedures for both Route A and Route B. Rising rooftop solar adoption is expected to increase demand for compliance and advisory support. Benefits For Consumers: Fee Waivers for small rooftop systems. Deemed Approval avoids any delay by DISCOM. No need to visit and submit any paperwork. For Businesses: Timely and definite time frame for planning. Unified process for deficiencies ensures less hassle. Digital Connection Agreement ensures efficient working. For Government: Helps in achieving rooftop solar target under PM Surya Ghar Program. Demonstrates measurable ease-of-doing-business improvement in the power sector. For the Renewable Energy Sector: Encourages more EPC and consultancy activity around rooftop solar. Reduces regulatory friction that previously discouraged smaller installations. Challenges A good process design still faces its own real-world friction issues: Digital literacy issues: Some customers, particularly first-timers, may feel out of place with the entirely digital application process. DISCOM preparedness: The very stringent 10-day integrated Stage II requires that DISCOMs be well prepared. Documentation accuracy: Because defects are only detected once, applicants need to get everything right on their first attempt to avoid delays caused by the 15-day cure period. Solutions: Customers can seek help from installers and compliance consultants in drafting accurate documentation. DISCOMs need to improve their back-end coordination efforts among their technical and administrative staff to meet the new deadlines. Is This a Progressive Reform or Additional Compliance Burden? Aspect Advantages (Progressive Reform) Possible Concerns (Compliance Burden) Process Structure The two-stage process replaces the older three-tier system, reducing the number of approval checkpoints. Larger or non-domestic consumers still go through a full technical feasibility check. Timelines Firm, capped timelines, 25 days (above 10 kW) and 10 days (up to 10 kW), give applicants certainty. Meeting these timelines consistently depends on DISCOM readiness and internal coordination. Documentation Deficiencies are now consolidated into a single notice instead of multiple rounds. Since only one notice is issued, applicants must obtain the documentation promptly, as there's less room for gradual correction. Fees Application fees and registration charges are waived for domestic systems up to 10 kW No fee relief for larger domestic systems or non-domestic consumers Mode of Application Fully online process removes the need for physical visits or paperwork Assumes reliable, consistent access to the online portal, which may not hold for all applicants Connection Agreement Digital execution (tick-box or e-signature) replaces physical signing Non-domestic consumers still need e-signature or digital signature infrastructure to comply Minor Deviations Safety-neutral deviations can no longer be used to delay approval Applicants must still be careful that deviations genuinely don't affect safety or grid compatibility Overall Effort Significantly reduced effort for small domestic consumers, who are the majority of applicants. Slightly higher documentation precision expected from commercial and industrial applicants Balanced View: Overall, the amendment is more about lessening the burden of compliance than adding to it. The increased documentation requirements can be justified in exchange for fast, inexpensive, and predictable approvals. Business Opportunities EPC Companies: Can sell faster project timescales to their clients due to certainty of regulations. Consultants: Increasing demand for application preparation, documentation review, and assistance navigating the portal. Contractors: Fast approvals lead to faster turnarounds and greater project volume. Manufacturers: Solar energy adoption leads to increased sales of panels, inverters, and net metering systems. Financial Institutions: Predictable timelines make solar financing products easy to offer and underwrite. Energy Auditors: Rising installations create ongoing demand for performance audits and compliance verification. How Businesses Can Achieve Compliance? Identify the correct application route before starting: Route A or Route B. Have all documents ready, including the Single Line Diagram, to prevent deficiency notices. Watch out for the 15 days for feasibility and 10 days for Stage II. Appoint a person to handle portal submissions and digital signing. Provide your response to deficiency notices within 15 days. Keep digital copies of all approval stages for possible audits/disputes. Be aware of any additional DERC circulars, as there may be more information. How Does the Amendment Support India's Renewable Energy Goals? The amendment is part of a bigger effort by India to shift to renewable energy sources. Simplified approvals for rooftop solar systems by DERC help increase the use of PM Surya Ghar in Delhi and thus achieve Indian goals in this area. The move toward a fully digital, time-bound process also reflects the government's broader Ease of Doing Business agenda, applying the same principle of process simplification used in other regulatory areas. Digital governance, replacing physical paperwork with online systems, reduces both cost and delay for citizens and businesses alike, while giving regulators better data on installation trends across the city. How Can Corpseed Help? Application Route Guidance Helping you determine whether your case falls under Route A (PM Surya Ghar) or Route B (all other consumers). Advising on which portal to use, National Portal, DISCOM portal, or Delhi State Portal, based on your consumer category. Technical Documentation Support Preparing an accurate Single Line Diagram that matches your actual installation. Reviewing system specifications and capacity details before submission to avoid mismatches. Ensuring documents meet safety and grid-compatibility requirements up front. End-to-End Application Filing Managing the online submission process from application to registration. Coordinating document uploads at the correct stage and within the timeline. Tracking the 15-day feasibility window and 10-day Stage II window on your behalf. Deficiency Resolution Assistance Reviewing any consolidated deficiency notice issued by the DISCOM. Helping you cure flagged issues within the 15-day window without missing deadlines. Digital Connection Agreement Handling Guiding you through the tick-box or e-signature process depending on your consumer category. Ensuring the agreement is executed correctly at the time of Stage II submission. Ongoing Compliance and Advisory Keeping you informed about any more DERC circulars or explanations that arise during the process. Maintaining an electronic record of your approval stages for future reference.  Helping EPC companies, commercial establishments, and homeowners with compliance advisory.