Is Digital Solar Legal in India? Understanding the Electricity Act & SERC Regulations
Worried about digital solar legality? Full breakdown of how platforms operate within the Electricity Act 2003, SERC regulations, and DISCOM frameworks.
Key Takeaways
Digital solar operates fully within the Electricity Act, 2003 framework.
PowerNetPro does NOT sell electricity to users — users receive bill credits (critical legal distinction).
State SERCs in Maharashtra, Karnataka, Delhi, Rajasthan all support virtual net metering.
MNRE has clarified VNM, group net metering, and net billing are treated at par.
User data is protected under IT Act 2000 and Digital Personal Data Protection Act.
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
1. Host arrangement: Standard B2B power purchase. Host pays ₹10–12/unit for solar electricity consumed on-site.
2. User credits: Users receive ₹7/unit bill offset — not electricity delivery.
3. 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.
PowerNetPro is 100% legal and regulated. Read the platform terms →