The Bihar Electricity Regulatory Commission (BERC) has approved the revised Power Purchase Agreement (PPA) and energy accounting mechanism for implementing rooftop solar systems under the PM Surya Ghar: Muft Bijli Yojana in Bihar. The order, issued in Case No. 26/2026 by Chairman Amir Subhani and Member P.S. Yadav, clears the way for the installation of around 250,000 grid-connected rooftop solar PV systems for low-income Kutir Jyoti consumers across the state.
The petition was jointly filed by the South Bihar Power Distribution Company Limited (SBPDCL) and the North Bihar Power Distribution Company Limited (NBPDCL). The two distribution companies sought the Commission’s approval for a revised PPA and a dedicated billing and energy accounting framework to implement 1.1 kW rooftop solar systems under the Utility-Led Aggregation (ULA) RESCO model for a period of 10 years.
The latest order follows an earlier decision by the Commission in which it had already approved the tariff discovered through competitive bidding for 18 packages covering around 275 MW (DC) of rooftop solar capacity. However, approval of the draft PPA and the energy accounting mechanism had been deferred because the initial documents contained errors and required modifications. The utilities later submitted revised drafts in line with the operational guidelines issued by the Ministry of New and Renewable Energy (MNRE).
A key issue before the Commission was the method of billing consumers and accounting for solar energy under the ULA RESCO model. Under this arrangement, consumers receive up to 125 units of free electricity each month through a combination of electricity generated from rooftop solar systems and electricity imported from the grid. Since the rooftop solar systems are owned by RESCO developers rather than the consumers, the utilities argued that the existing BERC Net Metering Regulations, 2018, were not suitable for this project.
After reviewing the proposal, the Commission agreed that the traditional net metering regulations do not directly apply to the ULA model. It approved the energy accounting formula proposed by the utilities, under which total monthly electricity consumption will be calculated as imported energy plus solar generation minus exported energy. The Commission said this approach would support smooth implementation of the scheme while ensuring accurate energy accounting.
The approved mechanism also specifies that monthly payments to RESCO developers will be based on actual solar generation data collected through a Remote Monitoring System (RMS) connected to the inverters or through the Discoms’ central monitoring portal. Payments will be released provisionally within 30 days and will later be adjusted every quarter after verification with physical solar generation meter readings.
The Commission further directed that the generated energy and payments will be provisionally shared between NBPDCL and SBPDCL in a 54:46 ratio until the annual energy accounts are finalized.
While examining the revised PPA, BERC accepted several changes suggested by the utilities. It approved replacing the term “Net Metering” with “Import-Export Metering” throughout the agreement and removed the provision allowing the contract to be extended beyond its 10-year duration.
However, the Commission rejected Clause 5.2.1 of the draft PPA, which proposed allowing the Discoms to increase the number of rooftop solar installations by up to 100% at their discretion. BERC observed that the in-principle approval granted by MNRE and the Central Financial Assistance (CFA) of ₹33,000 per rooftop solar system are strictly limited to the approved target of 250,000 installations. Any expansion beyond this limit would require fresh approval.
With these modifications and conditions incorporated, the Commission approved the revised PPA and the energy accounting mechanism, officially disposing of the case and enabling the large-scale implementation of the PM Surya Ghar: Muft Bijli Yojana for eligible consumers across Bihar.
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