Is Digital Solar Legal in India? Understanding the Electricity Act & SERC Regulations
India’s power sector is governed by this Act. Key provisions for digital solar:
Key Takeaways
India’s power sector is governed by this Act. Key provisions for digital solar:
MERC (Maharashtra): Comprehensive VNM regulations with clear credit allocation rules.
Data Protection & Consumer Rights
The Foundation: Electricity Act, 2003
India’s power sector is governed by this Act. Key provisions for digital solar:
Section 9 (Captive Generation): Allows any person to operate a captive generating plant for own consumption.
Section 86(1)(e) (SERC Powers): Empowers SERCs to promote renewable energy and regulate co-generation.
The Act creates legal space for solar generation, net metering, and sharing renewable benefits among consumers.
State-Level SERC Frameworks
MERC (Maharashtra): Comprehensive VNM regulations with clear credit allocation rules.
KERC (Karnataka): Active VNM framework for apartment complexes and commercial consumers.
DERC (Delhi): Updated VNM guidelines January 2026, all consumer categories now eligible.
RERC (Rajasthan): Virtual and group net metering up to 1 MW across all categories.
How PowerNetPro Fits the Legal Framework
- Host arrangement: Standard B2B power purchase. Host pays ₹10–12/unit for solar electricity consumed on-site.
- User credits: Users receive ₹7/unit bill offset — not electricity delivery.
- DISCOM continuity: DISCOMs continue billing hosts and users normally. Platform operates within, not outside, DISCOM infrastructure.
Data Protection & Consumer Rights
Compliance with IT Act 2000, Digital Personal Data Protection Act. Encrypted storage, access controls, audit trails. Transparent pricing, clear user agreements, accessible grievance handling.