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Net Metering – Arunachal Pradesh

The Arunachal Pradesh State Electricity Regulatory Commission (RooftopSolar Grid Interactive systems based on Net metering) Regulations, 2016 may be used to refer to these rules.

These rules shall be in effect as of the day they are published in the Arunachal Pradesh Gazette.

In these regulations, unless the context clearly dictates otherwise,

  •  “Act” refers to the Electricity Act of 2003 (36 of 2003) and any subsequent amendments thereto; “agreement” refers to a contract between the Distribution licensee and the consumer;
  •  “billing cycle” or “billing period” refers to the time period during which the licensee prepares regular electricity bills for various categories of consumers in accordance with the Commission’s specifications; 
  • “Commission” refers to the Arunachal Pradesh State Electricity Regulatory Commission constituted under the Act;
  • ‘consumer’ means any person who is supplied with electricity for his own use by a licensee or the Government or by any other person engaged in the business of supplying electricity to the public under this Act or any other law for the time being in force and includes any person whose premises are, for the time being, connected for the purpose of receiving electricity with the works of a distribution licensee, the Government or such other person, as the case may be; 
  • “contracted load” or “contract demand” means the maximum demand in kW, kVA or BHP, agreed to be supplied by the licensee and indicated in the agreement executed between the licensee and the consumer; 
  • “Distribution licensee” or “licensee” means a person granted a license under Section 14 of the Act authorizing him to operate and maintain a distribution system for supplying electricity to the consumers in his area of supply
  •  “Electricity Supply Code” means the Arunachal Pradesh Electricity Supply Code – 2013 notified under section 50 of the Act and any subsequent amendments thereof; 
  • ‘eligible consumer’ means a consumer of electricity in the area of supply of the distribution licensee, who uses a rooftop solar system installed in the consumer premises, to offset part or all of the consumer’s own electrical requirements, given that such systems can be self-owned or third party owned; 
  •  “financial year” or “year” means the period beginning from first of April in an English calendar year and ending with the thirty first of the March of the next year
  • “Grid Interactive System” (GIS) means a system that connects the Solar power generating plant in an electricity consumer’s premises to an utility grid, so as to supply excess electricity to the distribution company’s grid, after meeting the need of consumer and also to draw electricity from the grid to meet the short fall when sufficient electricity is not produced by the generating plant. Importexport and net energy consumed or injected is measured by ‘net metering’. 
  • “Interconnection Point” means the interface of the Solar power generating facility with the network of distribution licensees and the ‘Interconnection Point’ for such facility shall be the outgoing terminals of the meter, if the meter is fixed after the Distribution Licensee’s cut-outs / switchgear in the premises of the Eligible Consumer and the Distribution Licensee’s cut-outs / switchgear, if the meter is fixed before the Distribution Licensee’s cut-outs / switchgear.
  •  “kWp” means kilo Watt peak; 
  •  “net metering” means an arrangement under which rooftop solar system thesystem installed at eligible consumer premises delivers surplus electricity, if any, to the Distribution Licensee after off-setting the electricity supplied by distribution licensee during the applicable billing period.
  •  “obligated entity” means the entity mandated under clause (e) of subsection (1) of section 86 of the Act to fulfill the renewable purchase obligation and identified under Renewable Power Purchase Obligations and Its Compliance – 2012 and as amended upto date. 
  •  “premises” means rooftops or/and elevated areas on the land, building or infrastructure or part or combination thereof in respect of which a separate meter or metering arrangements have been made by the licensee for supply of electricity; 
  •  ‘rooftop solar system’ means the solar photo voltaic power system installed on the rooftops of consumer premises that uses sunlight for direct conversion into electricity through photo voltaic technology; 
  • “Renewable Energy Certificate (REC)” means the means the certificate issued in accordance with the procedures approved by the Central Electricity Regulatory Commission; 
  •  ‘settlement period” means the period beginning from first of April in an English calendar year and ending with the thirty first of the March of the next year; 
  •  “tariff order” in respect of a licensee means the most recent order issued by the Commission for that licensee indicating the rates to be charged by the licensee from various categories of consumers for supply of electrical energy and services;

Although not particularly defined above but specified in the Act, all other terms and expressions used in these Regulations shall have the meanings ascribed to them in the Act. Other terms and phrases that are used in this text but aren’t clearly defined in these Regulations or in the Act but are defined by another law established by the Parliament that applies to the State’s energy business will have the meaning that law gives them.

Scope and Application Of net metering (Arunachal Pradesh)

The distribution licensee and energy consumers of the state of Arunachal Pradesh are subject to these regulations.

An eligible consumer may own a rooftop solar grid interactive system that is installed on his property, or it may belong to a third party.

Under a net metering arrangement, an eligible customer may install a rooftop solar system that is: 

a) within the allowed rated capacity as specified by these Regulations;

 b) situated on the consumer’s premises.

c) Must safely connect to and run concurrently with the distribution licensee network.

These rules do not restrict the ability of pertinent state authorities to carry out rooftop solar projects with a capacity greater than 1 MWp using other methods.

Basic Principles regarding net metering (Arunachal Pradesh)

If a customer plans to construct a rooftop solar system that is linked to the grid in its area of supply, the distribution licensee must offer them a net metering agreement on a first-come, first-served basis.

The consumer is eligible to install a grid-connected rooftop solar system of the rated capacity as specified under these Regulations, provided that the distribution licensee offers net metering for the target capacity as specified under these Regulations, provided further that the interconnection of such system with the grid is undertaken as specified under these Regulations and the relevant technical standards.

Target Capacity for Distribution Licensee 

 The Distribution Licensee shall offer eligible customers a net metering option if the total capacity (measured in MW) does not exceed the target capacity established by the Commission;

If the following target is fulfilled, eligible consumers under net metering in the distribution licensee’s area of supply shall be permitted a maximum cumulative capacity as described below on an annual basis:

                 FY 2016-17 = 6MW                                                  FY 2017-18 = 6MW

                 FY 2018-19 = 8 MW                                                FY 2019-20 = 10MW

                 FY 2020-21 = 10 MW                                               FY 2012-22 = 10 MW

The distribution licensee must update the level capacity of distribution transformers available for connecting rooftop solar systems under net metering arrangements on an annual basis and provide the information to the Commission as well. However, the cumulative capacity that can be allowed at a particular distribution transformer must not exceed 15% of the distribution transformer’s peak capacity.

Consumer eligibility and project capacity for each individual

  • The solar rooftop net metering arrangement is open to all qualified electricity consumers in the distribution licensee’s region of service 
  •  The Grid Interactive System’s interconnecting voltage level for various capacity ranges must adhere to the relevant provisions of the 2013 Electricity Supply Code Regulations of the Arunachal Pradesh State Electricity Regulatory Commission.
  •  The ability of each qualified consumer to be connected to the grid will determine the maximum rooftop solar system capacity that may be installed at their premises;

As long as the installed capacity ranges from 1 KWp to 1000 KWp (1MWp). Additionally, provided that the installed capacity complies with the guidelines set forth in the Arunachal Pradesh Electricity Supply Code-2013 to allow for consumer connections

  •  With the caveat that a variance in the system’s rated capacity is permitted as long as it stays within a five percent range.

Specifications, standards, and safety prerequisites for interconnection with the grid

The distribution licensee must make sure that: 

(a) The interconnection of the solar energy system with the licensee’s distribution system complies with the specifications and standards set forth in the Central Electricity Authority (Technical Standards for connectivity of the Distributed Generation Resources) Regulations, 2013, as amended from time to time; 

 (b) The interconnection of the solar energy system with the licensee’s distribution system complies with all applicable laws and regulations.

(c) The installed solar and net meters meet the standards, requirements, and accuracy level outlined in the Central Electricity Authority (Installation and Operation of Meters) Regulations, 2006, as amended, and are installed in a way that makes them easily accessible for reading.

 The licensee must take the aforementioned criterion into consideration when determining whether it is feasible and appropriate to link a Grid Interactive system owned by a customer.

The supplier will provide the qualifying customer with information about the specifications and other specifics of the parts, including the metre and the safety equipment that must be installed in conjunction with the solar energy system.

The licensee must also give a copy of the “Net Metering Connection Agreement,” which is annexed as Annexure-III to these regulations and contains the “technical interconnecting, safety, and other requirements” that the consumer must meet in order to set up such a system, to any interested prospective eligible consumer in advance.

Energy Accounting and Settlement 

 For each billing period, the licensee shall show the quantum of injected electricity by eligible consumers in the billing period, supplied electricity by distribution licensee in the billing period, net billed electricity for payment by consumers for that billing period, and net carried over electricity to the next billing period separately;

 (a) Provided, however, that in the event the electricity injected exceeds the electricity consumed during the billing period, the licensee shall show the net carried over electricity to the next billing period separately.

(b) Additionally, provided that the distribution licensee raises an invoice for the net electricity consumption after deducting any electricity credit balance left over from prior billing periods in the event that the electricity supplied by the distribution licensee during any billing period exceeds the electricity generated by the eligible consumer’s rooftop solar system;

(c) The power consumption in any time block (such as peak hours, off-peak hours, etc.) shall be first offset with the electricity generation in the same time block, provided that the eligible customer is within the scope of the time of day rate, as defined from time to time by the Commission. In a billing cycle, any cumulative surplus generation above consumption in any other time block must be reported as though it happened within the off-peak time block.

(d) Further provided that, in accordance with the directives of the Arunachal Pradesh State Electricity Regulatory Commission, the excess electricity measured in kilowatt hours may only be used to offset the consumption measured in kilowatt hours and may not be used to compensate for any other fees and charges imposed by the distribution licensee.

(e) Moreover provided that the distribution licensee shall be authorized to raise invoices for any additional charges as permitted by the Arunachal Pradesh State Electricity Regulatory Commission, in addition to the consumer price.

If an eligible consumer injects excess electricity into the licensee at the end of the “settlement period” , the licensee is required to reimburse the eligible consumer at the average pooled purchase cost of electricity determined by the Commission for that year.

Assuming additionally that cumulative carried over injected electricity will be reset to Zero at the start of each settlement period.

 If there is a billing dispute, it will be resolved in accordance with the 2015 APSERC CGRF Regulations.

Solar Renewable Purchase Obligation (RPO):

If an eligible consumer is an obligated entity under the Arunachal Pradesh State Electricity Regulatory Commission (Renewable Purchase Obligation and its Compliance) Regulation 2012 and as amended from time to time, the amount of electricity generated from the solar energy system of that consumer and consumed by him will qualify for accounting towards the Renewable Purchase Obligation (RPO) of such eligible consumer.

If the eligible consumer is not an obligated entity under the Arunachal Pradesh State Electricity Regulatory Commission (Renewable Purchase Obligation and its Compliance) Regulation – 2012 and as amended from time to time, the amount of electricity generated from the solar energy system of the eligible consumer shall qualify for accounting towards the Renewable Purchase Obligation (RPO) of the distribution licensee.

Application of Additional Fees net metering (Arunachal Pradesh)

Rooftop solar systems installed on qualified consumer premises under a net metering arrangement, regardless of whether they are self-owned or owned by a third party, are immune from banking, wheeling, and cross subsidy fees.

As long as banking is defined in accordance with the pertinent Regulations that the Commission has made known.

Participant Eligibility for the Renewable Energy Certificate Mechanism net metering (Arunachal Pradesh)

The Central Electricity Regulatory Commission (Terms and Conditions for Recognition and Issue of Renewable Energy Certificate for Renewable Energy Generation) Regulations, 2010, and any later amendments thereto, shall apply to the issuance of renewable energy certificates;

Metering configuration (Arunachal Pradesh)

  • Net meters must be installed at the places where eligible consumers connect to the distribution licensee’s network.
  • A solar meter must be installed at the solar energy system’s distribution point in order to track the entire amount of solar electricity produced.
  • The net meters must meet the standards notified by the appropriate authorities or have accuracy class 1.0 or above. The precision of the solar meters must be 0.2s class, and they must have a facility for using to record meter readings.
  • Meter reading instruments (MRI), wireless technology, or other similar technologies must be able to receive readings from solar and net meters.
  • For solar energy systems with a capacity more than 20 KWp, a check meter must be installed; however, for systems with a capacity of up to 20 KWp, a check metre is optional. As long as the eligible consumer pays the cost of any new or extra meters, which are installed and owned by the distribution licensee.
  • As appropriate, the regulations of the APSERC (Electricity Supply Code Regulations) 2013 must be followed for the supply and installation of meters, handling of defective metres, and other matters relating to meters.
  • The Central Electricity Authority (Installation and Operation of Meters) Regulations, 2006, as modified, must be followed while testing, installing, and sealing the meters.
  • The installed metres must be jointly inspected, sealed on behalf of both parties, tested, and installed only in the presence of the consumer and distribution licensee representatives.
  • The distribution licensee’s metre reading will serve as the basis for any commercial settlements, and the customer will receive a copy of the net metre and solar meter reading statements as soon as the reading is obtained.

Connection of Meters and Protective Devices net metering (Arunachal Pradesh): 

Below  are two diagrams illustrating the metering and other connecting configuration of a grid interactive system without and with battery backup.

The diagrams are illustrative and may need to be modified to fit the circumstances on site in order to address any technical or business challenges. However, the safety criteria, such as those requiring “islanding” in the event of a grid outage and isolation of the battery power supply while the grid is connected, should be included, and an SPV plant must prominently display a diagram of the actual installation showing all components.


With regards to system setup and net metering, an agreement will be made between the qualified consumers and DISCOM. There is a sample Agreement format included.

Amplification Effect 

Despite anything to the contrary stated:

 (a) in the 2012 APSERC Renewable Purchase Obligation and its Compliance Regulation

(a) In the 2013 edition of the APSERC Electricity Supply Code Regulations.

These regulations, which were created by the Commission in accordance with Section 181 of the Electricity Act of 2003, will take precedence in relation to “Grid Interactive Solar PV Systems.”

Penalty or Reimbursement

If the net metering system fails, the Commission’s Standard of Performance Regulations for Distribution Licensees will apply, with the appropriate penalties or compensation.

Power to Remove Difficulties

The Commission has the authority to direct the licensee / generator or any other person to take appropriate action that is not in conflict with the Act and that the Commission deems to be necessary or expedient for the purpose of removing any difficulties that may arise in carrying out any of the provisions of these regulations, either telephonic or upon an application made to it.

Power to give Directions:

 The Commission may from time to time issue whatever orders and directions it deems necessary to carry out these Regulations.

Power to Relax: 

The Commission may, on its own initiative or in response to an application made before it by an interested party, by general or special order, for reasons to be recorded to be recorded in writing and after providing a hearing opportunity to the parties likely to be affected, relax any of the provisions of these Regulations.

Power to Amend;

The Commission has the authority to amend these regulations at any time, with or without cause, and for any reason specified in writing, either generally or specifically.

Saving of Inherent Powers: 

Nothing in these Regulations shall limit or otherwise affect the inherent powers of the Commission to adopt a procedure that is at variance with any of the provisions of these Regulations if the Commission determines, in light of the unique circumstances of the matter or class of matters and for reasons to be recorded in writing, that it is necessary or expedient to depart from the procedure specified in these Regulations.


 The Commission shall decide all questions relating to the interpretation of these regulations, and its decision in such matters shall be conclusive.

Please find enclosed Annexure 1 & Annexure 2  

Net Metering - Arunachal Pradesh
Net Metering - Arunachal Pradesh


  • Eligible consumer is required to be aware, in advance, of the standards and conditions his system has to meet for being integrated into grid/distribution system.
  • Eligible consumer agrees that connection of Photovoltaic system to Discom’s distribution system shall be bound by requirements Arunachal Pradesh Electricity Supply Code – 2013. The grid shall continue to perform with specified reliability, security and quality as per the Central Electricity Authority’s“Technical Standards for connectivity of Distributed Generation Resources Regulations, 2014 “ as amended from time to time and any other relevant regulations of the CEA. 
  •  The Eligible Consumer shall also agree to conform with the specifications and standards applicable to the Solar PV Systems as may be prescribed by the Ministry of New & Renewable Sources, Government of India from time to time.

 Technical and Interconnection Requirements 

  • Eligible consumer agrees that he has installed or will install, prior to connection of Photovoltaic system to Discom’s distribution system, an isolation device (both automatic and inbuilt within inverter and external manual relays) and agrees for the Discom to have access to and operation of this, if required, for repair and maintenance of the distribution system. 
  • Eligible consumer agrees that in case of a power outage on Discom’s system, photovoltaic system will shut down, unless special transfer and isolating capabilities have been installed on photovoltaic system. 
  • All the equipment connected to distribution system must be complaint with relevant international (IEEE/IEC) or Indian standards (BIS) and installations of electrical equipment must comply with Indian Electricity rules, 1956 and Central Electricity Authority (Measures of Safety and Electricity Supply) Regulations, 2010. 
  •  Eligible consumer agrees that Discom will specify the interface/inter-connection point andmetering point and metering point
  • Eligible consumer agrees to adhere to following power quality measures as per International or Indian standards and/or other such measures provided by Commission/Discom.

 a. Harmonic current: Harmonic current injections from a generating station shall not exceed the limits specified in IEEE 519. 

b. Synchronization:Photovoltaic system must be equipped with a grid frequency synchronization device. 

c. Voltage: The voltage-operating window should minimize nuisance tripping and should be under operating range of 80% to 110% of the nominal connected voltage. Beyond a clearing time of 2 seconds, the Photovoltaic system must isolate itself from the grid.

 d. Flicker: Operation of Photovoltaic system shouldn’t cause voltage flicker in excess of the limits stated in the relevant sections of IEC standards or other equivalent Indian standards, if any. 

e.Frequency: When the Distribution system frequency deviates outside the specified conditions (50.5 Hz on upper side and 47.5 Hz on lower side), the Photovoltaic system shouldn’t energize the grid and should shift to island mode. 

f. DC Injection: Photovoltaic system should not inject DC power more than 0.5% of full rated output at the interconnection point or 1% of rated inverter output current into distribution system under any operating conditions.

 g. Power Factor: While the output of the inverter is greater than 50%, a lagging power factor of greater than 0.9 should operate.

 h. Islanding and Disconnection: The Photovoltaic system in the event of voltage or frequency variations must island/disconnect itself within IEC standard on stipulated period.

 i. Overload and Overheat: The inverter should have the facility to automatically switch off in case of overload or overheating and should restart when normal conditions are restored.

 j. Paralleling device:Paralleling device of Photovoltaic system shall be capable of withstanding 220% of the nominal voltage at the interconnection point 

  • Eligible consumer agrees to furnish all the data such as voltage, frequency, and breaker, isolator position in his system, as and when required by the Discom. He may also try to provide facilities for online transfer of the real time operational data. 

 Safety of net metering (Arunachal Pradesh)

  •  Eligible consumer shall comply with the Central Electricity Authority (Measures Relating to Safety and Electricity Supply) Regulations 2010 and relevant provisions of National Electricity Code particularly those related to Solar PV installations.
  • Eligible consumer agrees that the design, installation, maintenance and operation of the photovoltaic system are performed in a manner conducive to the safety of the photovoltaic system as well as the Discom’s distribution system. 
  •  Due to Discom’s obligation to maintain a safe and reliable distribution system, eligible consumer agrees that if it is determined by Discom that eligible consumer’s photovoltaic system either causes damage to and/or produces adverse effects affecting other distribution systems’ consumers or Discom’s assets, eligible consumer will have to disconnect photovoltaic system immediately from the distribution system upon direction from the Discom and correct the problem at his own expense prior to a reconnection.

 Clearances and Approvals for net metering (Arunachal Pradesh)

  •  The eligible consumer agrees to attain all the necessary approvals and clearances (environmental and grid connected related) before connecting the photovoltaic system to the distribution system. 

 Access and Disconnection of net metering (Arunachal Pradesh)

  •  Discom shall have access to metering equipment and disconnecting means of photovoltaic system, both automatic and manual, at all times.
  •  In emergency or outage situation, where there is no access to a disconnecting means, both automatic and manual, such as a switch or breaker, Discom may disconnect service to the premise.


  • Eligible consumer and Discom will indemnify each other for damages or adverse effects from either party’s negligence or intentional misconduct in the connection and operation of photovoltaic system or Discom’s distribution system. 
  •  Discom and eligible consumer will not be liable to each other for any loss of profits or revenues, business interruption losses, loss of contract or loss of goodwill, or for indirect, consequential, incidental or special damages, including, but not limited to, punitive or exemplary damages, whether any of the said liability, loss or damages arise in contract, or otherwise. 
  • Discom shall not be liable for delivery or realization by eligible consumer for any fiscal or other incentive provided by the central government. 

Commercial Settlement 

  • All the commercial settlement under this agreement shall follow the Net metering regulations of Arunachal Pradesh State Electricity Regulatory Commission (Arunachal Pradesh)

 Connection Costs

  •  The eligible consumer shall bear all costs related to setting up of photovoltaic system including metering and interconnection costs. The eligible consumer agrees to pay the actual cost of modifications and upgrades to the distribution facilities required to connect photovoltaic system in case it is required. 
  •  Cost for interconnection equipment including the isolators, meters etc. are also to be borne by the eligible consumer. 

 Termination of net metering (Arunachal Pradesh)

  • The eligible consumer can terminate agreement at any time by providing Discom with 90days prior notice. 
  • Discom has the right to terminate Agreement on 30 days prior written notice, If eligible consumer breaches a term of this Agreement and does not remedy the breach within 30 days of receiving written notice from Discom of the breach. 
  • Eligible consumer agrees that upon termination of this Agreement, he must disconnect the photovoltaic system from Discom’s distribution system in a timely manner and to Discom’s satisfaction. 

In the witness, where of Mr. _______________________________ for an on behalf of __________________________________ (Eligible consumer) and Mr. _________________________________________ for and on behalf of _______________________________ (Discom) agree to this agreement.

Please find the link to the Official Document released by The Government of Arunachal Pradesh – https://apserc.nic.in/pdf/6th-Oct-2016.pdf



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