In a major development for solar power in Chhattisgarh, the State Electricity Regulatory Commission (CSERC) on November 24, 2025, issued a landmark clarification on Virtual Net Metering. The Commission ruled that a renewable energy generating unit under the Virtual Net Metering mechanism can be located away from the premises of the participating consumers. This decision ends long-standing confusion between solar developers and the state distribution company and is expected to significantly boost distributed solar adoption in the state.
The ruling came in response to a petition filed by Sadbhav Renewables Private Limited against the Chhattisgarh State Power Distribution Company Limited (CSPDCL). The developer asked whether renewable plants under Virtual Net Metering must be installed at the consumer’s location or could be set up at a different site. The confusion had arisen due to the interpretation of clauses in the CSERC Grid Interactive Distributed Renewable Energy Source Regulations, 2019, and the Group Net Metering and Virtual Net Metering Guidelines, 2022.
Sadbhav Renewables argued that the core idea of Virtual Net Metering is to allow renewable generation to be located elsewhere, unlike traditional Net Metering, where generation and consumption occur at the same site. The developer stated that the VNM model was created to support consumers without suitable rooftop space, such as apartment residents, who want to contribute to clean energy generation and benefit from lower electricity costs. They emphasized that this mechanism is essential for supporting India’s renewable energy goals.
On the other hand, CSPDCL argued that transformer capacity limitations required the generating system to be installed at the consumer’s location. The utility claimed that exemptions from charges like wheeling and cross-subsidy were based on the assumption that generation would be co-located.
After reviewing both sides, CSERC members Vivek Ganodwale (Law) and Ajay Kumar Singh (Technical) held that the distribution company had misunderstood the purpose of the 2022 guidelines. The Commission clarified that the term “Virtual” was intentionally included to expand access to renewable energy to smaller customers and those facing space constraints. The Commission explained that the mechanism allows energy to be injected into the grid through a gross meter at the plant site and then credited to multiple consumers elsewhere.
The order also specified that the renewable plant size would be limited to the combined sanctioned load of the participating consumers or 500 kW, whichever is lower. Importantly, if the transformer capacity at the selected location is insufficient, CSPDCL must upgrade the transformer rather than deny project approval.
This ruling confirms that generation units under Virtual Net Metering can be remotely located, opening the door to wider renewable energy participation and supporting India’s transition to a net-zero future.
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