Net metering is a billing system that allows rooftop owners having solar system installed at their rooftop to sell any excess electricity generated from solar system to local electricity utility


  • Up to 112 kWp

  • 50% of your Sanctioned Load
  • Cumulative capacity of all solar systems installed in your area shall not exceed 15% of distribution transformer capacity, in your area.

Ownership options

  • Self ownership (CAPEXmodel)
  • Third party ownership (RESCO model)

Billing Mechanism

  • Annual (April to March)
  • Any unadjusted electricity credits shall be paid as per the rates notified by RERC from time to time.


  • Exempted from banking, wheeling, cross-subsidy surcharges & electricity duty, no liability of property tax, exempted from VAT and entry tax.


  • 80% Accelerated Depreciation
  • Custom Duty concessions and Excise Duty Exemptions on solar equipment
  • 10 year Tax holiday on solar projects
  • Loans available for up to Rs.15 Crore for renewable energy projects under Priority sector lending

Madhya Pradesh Solar Policy and it’s Solar Highlights

Madhya Pradesh or MP is located in the Central part of India and that is why is called “Heart of India”. Until Chattisgarh was born, MP was the largest state in India but since, has been demoted to the second spot in the list. As expected from the state of its size, Madhya Pradesh has a total of 850.35MW commissioned solar power so far. In the last financial year of 2016/17 73.98MW of solar power was commissioned. The largest solar plant in the state so far is the Welspun Solar MP project that produces 151MW solar power and is located in the Bhagwanpura Village. This plant has been operational since 2014 and is one of the largest solar projects in the country. Other than this, there is a 130MW solar power plant in Bhagwanpur. There is an upcoming 750MW solar power plant in the district of Rewa, which when completed will be the world’s largest solar power plant, pushing the Desert Sunlight Project of California to the second spot. MP also announced a dedicated policy for rooftop renewable energy projects in 2016 which reiterates the push for rooftop solar in helping the state achieve its target of 2.2GW by 2022. The target for the year 2017-18 has been set to 275MW. Madhya Pradesh Electricity Regulatory Commission or MPERC has already issued the regulations for Net Metering in 2015. The policy has also exempted energy generated from renewables systems from electricity duty and cess for 10 years from the date of commissioning.

Solar State Policy of Neighbouring States

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