APERC Increases Rooftop Solar Capacity Limit to 5 kW for Single-Phase Consumers in Andhra Pradesh

In a long-awaited harmonization of state power rules, the Andhra Pradesh Electricity Regulatory Commission (APERC) issued a formal order on August 5, 2026, authorizing an increase in the solar rooftop installation limit for single-phase Low Tension (LT) consumers from 3 kW to 5 kW. This strategic de-bottlenecking is intended to align permissible generation capacity with existing sanctioned loads, effectively resolving regulatory friction that has historically slowed residential solar adoption.

• New Capacity Limit: Up to 5 kW for single-phase LT service connections.
• Previous Capacity Limit: 3 kW (as per Clause 5.7 of Regulation No. 4 of 2023).
• Regulatory Mechanism: “Removal of Difficulty” clause (Clause 20 of Regulation No. 4 of 2023).
• Effective Date: Immediately from August 5, 2026.
• Target Audience: Residential and small-scale LT consumers across Andhra Pradesh.

Analysis of Regulatory Mismatch and Background

The Commission’s decision addresses a technical conflict between the state’s Retail Supply Tariff rules and the 2023 rooftop solar framework. While the tariff rules permitted single-phase electricity connections for a connected load (consumption capacity) of up to 5 kW, Clause 5.7 of Regulation No. 4 of 2023 restricted the SRTPV capacity (generation capacity) for those same connections to just 3 kW. This mismatch created significant implementation impediments, resulting in delayed net-metering approvals and widespread consumer grievances. The move toward regulatory alignment follows a formal representation by the Eastern Power Distribution Company of Andhra Pradesh Limited (APEPDCL) on August 3, 2026, which identified these inconsistencies as a primary barrier to service delivery.

Impact on PM Surya Ghar: Muft Bijli Yojana

The previous 3 kW cap posed a severe challenge for participants in the Central Government’s PM Surya Ghar: Muft Bijli Yojana. Many households with 5 kW sanctioned connected loads applied for matching 5 kWp SRTPV systems to maximize their benefits under the scheme, only to face mandatory rejections due to the previous regulatory ceiling. To put the scale of the scheme into perspective, Andhra Pradesh recorded 23,488 applications and 1,602 installations during the early-stage milestones of the initiative (as of August 2024). This policy relaxation is viewed as essential to maintaining the current momentum of the national program. Furthermore, the Commission clarified that the Feed-in-Tariff (FIT) for net surplus solar energy generated and exported to the grid remains fixed at Rs. 2.09 per kWh.

Resolution via “Removal of Difficulty” Clause

To rectify the prevailing administrative hurdles, APERC invoked Clause 20, the “Removal of Difficulty” provision, of Regulation No. 4 of 2023. In its findings, the Commission determined that the 3 kW restriction had become a significant “implementation impediment” to the growth of SRTPV systems and the success of the PM Surya Ghar scheme. By exercising this legal power, the Commission ruled that notwithstanding the limit prescribed under Clause 5.7, single-phase LT consumers are now permitted to install SRTPV systems commensurate with their sanctioned connected load, up to a maximum ceiling of 5 kW.

State-Wide Implementation and Governance

The Commission has directed the following entities to enforce and implement the revised provisions to ensure uniform governance across the state:

• Andhra Pradesh Eastern Power Distribution Company Limited (APEPDCL)
• Andhra Pradesh Southern Power Distribution Company Limited (APSPDCL)
• Andhra Pradesh Central Power Distribution Company Limited (APCPDCL)
• Transmission Corporation of Andhra Pradesh (APTransco)
• New & Renewable Energy Development Corporation of Andhra Pradesh (NREDCAP)

Technical Summary for Consumers

Official Source Citations:

• Andhra Pradesh Electricity Regulatory Commission (APERC): Refer to the official APERC Portal for regulatory proceedings, including the executive order under the “Removal of Difficulty” clause (Proceedings/Engg/E-280/AD(Tr.)/07/2026).
• PM Surya Ghar Muft Bijli Yojana Portal: Access the official application, vendor registries, and subsidy disbursement guidelines via the PM Surya Ghar National Portal.
• Ministry of New and Renewable Energy (MNRE), Government of India: View national policy notifications, guidelines, and parliamentary reports (including the Lok Sabha Unstarred Question No. 2728 regarding state-wise installations) on the MNRE Official Portal.
• New & Renewable Energy Development Corporation of Andhra Pradesh (NREDCAP): Track online solar monitoring and state-level nodal guidelines on the NREDCAP Official Portal.
• Andhra Pradesh Central Power Distribution Company Limited (APCPDCL): Apply for residential grid-connected solar net-metering on the APCPDCL Solar Applications Portal