The Bihar Electricity Regulatory Commission has initiated public consultation on rooftop solar amendments proposing a 500 kW net-metering limit and compensation for year-end surplus electricity at 50% of the applicable feed-in tariff.
Patna, 10 October 2026: The Bihar Electricity Regulatory Commission (BERC) has proposed amendments to the state’s rooftop solar regulations, introducing changes to net-metering eligibility, surplus electricity settlement and feed-in tariff arrangements. The proposed changes have been introduced through the BERC (Rooftop Solar Grid Interactive Systems Based on Net and Gross Metering) (Second Amendment) Regulations, 2026, identified as SMP-47/2026, dated 8 October 2026. The proposal follows a joint petition submitted by North Bihar Power Distribution Company Limited (NBPDCL) and South Bihar Power Distribution Company Limited (SBPDCL).
The distribution companies have sought modifications to the existing rooftop solar framework, including a 500 kW net-metering capacity limit, revised compensation for surplus electricity and approval of a proposed ₹2.71/kWh feed-in tariff for FY 2026–27.
Importantly, these provisions remain under regulatory consideration and have not yet been implemented as final rules.
BERC Proposes 500 kW Net-Metering Capacity Limit
One of the significant proposed changes concerns the maximum capacity permitted under rooftop solar net-metering arrangements.
According to the distribution companies’ petition, consumers would be permitted to install net-metered rooftop solar systems up to 500 kW or their sanctioned load, whichever is lower.
For example, a commercial consumer with a sanctioned load of 300 kW would ordinarily be limited to 300 kW under the proposed arrangement, rather than automatically qualifying for the full 500 kW threshold.
The proposal would also place higher-capacity systems under alternative metering arrangements, particularly gross metering, subject to the final regulations.
The proposed 500 kW ceiling should not be interpreted as a prohibition on installing rooftop solar systems larger than 500 kW.
Instead, it concerns eligibility for a particular electricity accounting and compensation mechanism.
The final conditions will depend on BERC’s regulatory decision following stakeholder consultation.
Proposed Settlement of Surplus Solar Electricity
The second major proposal concerns how excess electricity generated by rooftop solar systems is financially settled.
Under net metering, consumers can use electricity generated by their solar installations to offset electricity purchased from the distribution grid, subject to applicable billing and credit-adjustment rules. When solar generation exceeds consumption during a billing interval, surplus electricity may be exported to the grid.
The proposed amendment would change the treatment of unadjusted surplus electricity remaining at the end of the financial year. Under the DISCOMs’ proposal, such surplus electricity would be compensated at 50% of the feed-in tariff determined by BERC for the relevant financial year.
This distinction is important because the proposal does not suggest paying consumers 50% of their normal retail electricity tariff.
Instead, compensation would be linked to a separately determined feed-in tariff.
The financial impact would therefore depend on the final approved tariff, the consumer’s exported electricity and the applicable annual settlement mechanism. Consumers with higher self-consumption may experience different financial outcomes from those exporting a large proportion of their solar generation.
Distribution Companies Propose ₹2.71/kWh Feed-in Tariff
Alongside the proposed regulatory amendments, NBPDCL and SBPDCL have requested approval of a feed-in tariff of ₹2.71 per kWh for FY 2026–27.
The proposed tariff primarily concerns electricity supplied to the distribution grid under gross-metering arrangements.
Under gross metering, electricity generated by a rooftop solar installation is accounted for separately from electricity consumed by the premises.
The electricity exported to the grid is compensated according to the applicable feed-in tariff, while consumption is billed under the relevant retail tariff.
This differs from net metering, where energy imports and exports are adjusted according to the applicable regulatory framework.
The proposed ₹2.71/kWh tariff has not yet received final regulatory approval.
If BERC ultimately approves that rate and adopts the proposed 50% year-end surplus settlement mechanism, the illustrative compensation would be approximately ₹1.36/kWh for qualifying surplus units.
However, this calculation is only illustrative and must not be treated as an approved payment rate.
Public Hearings Scheduled for November 2026
BERC has initiated separate regulatory proceedings to examine the proposed amendments and feed-in tariff arrangements.
The distribution companies’ joint petition has been registered as Case No. 42/2026, while the draft regulatory amendment is being considered through SMP-47/2026.
The scheduled proceedings are:
| Proceeding | Hearing date |
|---|---|
| DISCOM petition – Case No. 42/2026 | 2 November 2026 |
| Draft Second Amendment – SMP-47/2026 | 3 November 2026 |
| Scheduled hearing time | 11:30 AM |
For the DISCOM petition, stakeholders have been invited to submit comments and objections by 28 October 2026.
The Commission will examine the submissions and conduct the relevant hearings before making further regulatory decisions.
Consumers, solar developers, distribution utilities and industry stakeholders may provide their views on the proposed provisions.
The final regulatory framework could differ from the initial proposals depending on the consultation process.
How Net-Metering Changes Could Affect Solar Economics
Rooftop solar project economics depend on several factors beyond installation cost and available sunlight.
The most important considerations include electricity consumption, solar generation, self-consumption, import tariffs and compensation for exported energy.
For example, a commercial building with significant daytime electricity demand may directly consume much of its solar generation.
In contrast, buildings with relatively low daytime demand may export a greater proportion of electricity to the grid.
Where export compensation is lower than the retail electricity tariff, self-consumption can become particularly important for maximising financial savings.
Changes in annual surplus settlement may therefore influence decisions about system sizing.
Developers may need to assess whether proposed solar capacities are appropriate for the actual electricity consumption patterns of their customers.
Financial calculations should account for seasonal demand, annual generation, applicable tariff categories and the final regulatory provisions.
Implications for Commercial and Industrial Rooftop Solar
The proposed 500 kW net-metering limit could be particularly relevant for commercial and industrial consumers considering medium- and large-scale rooftop installations.
Such consumers may have substantial electricity requirements and sufficient roof area for solar capacity beyond the proposed threshold.
However, the commercial attractiveness of a project depends on whether generation is consumed on-site or exported through the applicable metering arrangement.
A system operating under gross metering can have different financial characteristics from one operating under net metering.
Solar developers should therefore evaluate consumer load profiles, sanctioned loads, distribution-network capacity and electricity tariffs before finalising project designs.
Technical requirements such as grid-interconnection approval, inverter protection, metering arrangements and electrical safety compliance will also remain important.
The proposed amendments reinforce the need for accurate financial modelling rather than relying on standard assumptions about rooftop solar savings.
Regulatory Clarity Will Support Rooftop Solar Planning
Clear rooftop solar regulations are important for consumers, installation companies, distribution utilities and financial institutions.
Predictable eligibility requirements and settlement mechanisms help developers prepare realistic project proposals and evaluate long-term electricity savings.
For distribution utilities, rooftop solar regulations must also address grid operation, metering accuracy, revenue implications and the treatment of electricity exported by consumers.
The consultation process provides an opportunity to assess these considerations while supporting the continued development of distributed renewable energy.
Stakeholders should distinguish the proposed amendments from the rules currently in force and monitor BERC’s final notifications.
Conclusion
BERC’s proposed amendments represent a significant regulatory development for Bihar’s rooftop solar sector.
The proposed 500 kW net-metering limit, settlement of annual surplus electricity at 50% of the applicable feed-in tariff, and requested ₹2.71/kWh feed-in tariff could influence future rooftop solar investment decisions. However, these provisions remain proposals and are subject to public consultation and regulatory approval. The hearings scheduled for 2 and 3 November 2026 will be important steps in determining the final framework. For consumers and solar developers, the key priority will be understanding the eventual rules and aligning system capacity, electricity consumption and financial expectations accordingly.A transparent and predictable regulatory framework will be essential for supporting sustainable rooftop solar growth across Bihar.
Reference:
BERC – Draft Regulations (SMP-47/2026)
BERC – Official Hearing Schedule
BERC – Public Consultation Notice
SolarQuarter – Detailed Regulatory Petition Report, 8 October 2026
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