In Short : The Chhattisgarh State Electricity Regulatory Commission (CSERC) has clarified that renewable energy plants under Virtual Net Metering (VNM) can be located off-site — not necessarily at the consumer’s premises. This landmark decision allows a single solar plant to serve multiple consumers, boosting access for those lacking rooftop space and significantly advancing distributed solar adoption in the state.
In Detail : The CSERC, issued a clarification on the workings of Virtual Net Metering in Chhattisgarh: it ruled that a renewable energy generating unit under VNM does not need to be co-located with the participating consumers.
This decision resolves a long-standing ambiguity. Previously, developers and the state utility — Chhattisgarh State Power Distribution Company Limited (CSPDCL) — were unsure whether the solar plant had to be physically at the consumer’s site or could be remotely located. The confusion stemmed from earlier language in the CSERC Grid Interactive Distributed Renewable Energy Source Regulations, 2019 and the Group Net Metering and Virtual Net Metering Guidelines, 2022.
In a petition filed by Sadbhav Renewables Private Limited, the developer argued that Virtual Net Metering by design allows generation to be located elsewhere—particularly benefiting consumers without rooftop space (e.g. apartment dwellers). The developer emphasized that requiring rooftop installation undermines the core intent of VNM.
CSPDCL, however, opposed this on technical grounds — citing transformer capacity limitations and expressing concern that exemptions (like waiving wheeling or cross-subsidy charges) were premised on co-location of generation and consumption.
After reviewing both sides, CSERC’s members concluded that the utility had misinterpreted the 2022 guidelines. The Commission clarified that “Virtual” in VNM is meant precisely to allow remote generation and broaden renewable energy accessibility for smaller consumers or those lacking space. As per CSERC, electricity can be injected into the grid from the plant site (via a gross meter), and credits can be passed on to multiple consumers elsewhere within the distribution licensee’s supply area.
In its order, CSERC also set a limit: the plant’s capacity under VNM should not exceed the combined sanctioned load of participating consumers or 500 kW — whichever is lower. This ensures system security and grid stability.
Importantly, if the transformer capacity at the proposed plant site is insufficient, CSPDCL cannot reject the application; instead, the utility must upgrade the transformer to support the installation. This effectively removes a major infrastructural barrier to distributed solar adoption under VNM.
The clarification is expected to have far-reaching implications. It could open participation for apartment residents, housing societies, smaller offices, or commercial units that lacked rooftop potential — enabling collective solar projects feeding multiple service connections. Proponents believe this will significantly accelerate solar uptake in Chhattisgarh.
For India’s broader clean energy aims, this ruling bolsters distributed solar deployment, helps optimise land use, and supports equitable access — especially for urban users. The decision by CSERC may serve as a model for other states where VNM implementation is unclear or underutilized.
