The KSERC, vide its notification dated 30.05.2025, issued the Draft Kerala State Electricity Regulatory Commission (Renewable Energy and Related Matters) Regulations, 2025 (“Draft RE Regulations 2025”), replacing the KSERC (Renewable Energy and Net Metering) Regulations, 2020 (“Regulations 2020”). The Draft RE Regulations 2025 reflect a broader policy shift aligned with evolving green technologies and the Central Government’s push for renewable energy adoption. The draft expands the scope for participation in various schemes, introduces additional technology options, and places consumers at the centre of the energy transition.
The interested stakeholders may provide their comments/suggestions on the Draft RE Regulations 2025 by 30.06.2025 to the Commission.
Salient Features
Implications for Prosumers (Producer + Consumer) and Consumers
The Regulations 2020 mostly catered rooftop solar projects, letting households sell spare/excess power back to the grid through net metering. The new regulation now applies not only to prosumers and rooftop solar installations but it also carves out space for net billing, gross metering, behind-the-meter (BtM) setups, group and virtual net metering (GNM) & (VNM), and even storage and hybrid plants.
This diversified metering approach reflects a shift from a one-size-fits-all model to a more flexible, decentralised, and technology-inclusive ecosystem.
From Storage to Smart Systems
Prosumers are now at the centre of Kerala’s energy transition. One of the most noticeable changes the regulation seeks to bring is change in the approach of energy storage systems. Previously, no regulation provision expressly addressed the integration of Battery Energy Storage Systems (BESS) with consumer. The Draft RE Regulations 2025 establishes a mandatory condition which requires charging storage during solar and peak hours and incentivises storage-coupled systems by granting higher feed-in tariffs during peak hours. This not only improves load balancing, grid management and system stability, but it also drives investment in energy storage technology.
Recognition of Emerging Technologies: VPP, P2P, and V2G
Another regulatory shift is the definition and facilitation of peer-to-peer (P2P) trading, virtual power plants (VPP), and vehicle-to-grid (V2G) methods. These future concepts were missing in the Regulations 2020 but are now acknowledged, reflecting a forward-looking approach and future preparation for India’s net zero target.
Revised Eligibility and Capacity Limits
The eligibility criteria and capacity thresholds for various metering options have also been revised. While net metering is now restricted to consumers with connected loads up to 3 kW (extendable to 5 kW with storage), gross metering is permitted for systems up to 3 MW, marking a substantial increase from earlier limits.
Net Metering to Dynamic Billing Systems
Unlike the Regulations 2020, which provided no clarity on how to handle produced net surplus energy or capacity upgrades, the Draft RE Regulations 2025 establishes a defined framework for scenarios in which prosumers (producers and consumers) expand plant capacity or modify their metering capacity. It also connects the maintenance of historical advantages (such as net metering under the Regulations 2020 standards) to circumstances such as plant life expiration, capacity expansion, or voluntary transition to new technological systems.
On connection and technical standards, the draft regulation requires smart meters and ABT (Availability Based Tariff)-compliant Special Energy Meters (SEM) for systems larger than 100 kW and 1 MW, respectively. These criteria show a clear move toward real-time energy monitoring and DSM compliance (Demand Side Management), which aligns with national grid code standards.
Streamlined Procedures and Grid Hosting Transparency
The Application and registration procedures have been digitised and simplified, with specific timelines for each stage of application, from feasibility approval to commissioning. Provisions like deemed feasibility for normal rooftop solar installations and penalties for wasted unused registrations boost transparency and resource efficiency. Furthermore, the concept of “hosting capacity” on transformers and the online publication of available capacities shows a more open and planned approach to manage transformer load.
The concept of frequent review processes has been formalised in the revised draft. KSERC has extended its responsibility in monitoring energy transition, suggesting policy advice, and ensuring that the state’s renewable energy growth is consistent with national objectives and grid requirements. This proactive supervision methodology replaces the previous regulations’ more reactive and compliance-based approach.
Conclusion
In summary, the Draft RE Regulations 2025 moves the state from a basic renewable integration framework to a comprehensive, multi-technology, consumer-driven model that is consistent with national decarbonization targets. It not only fills gaps in metering, billing, connection, and technical standards, but it also incorporates cutting-edge concepts such as V2G, VPP, and dynamic storage utilization. The end result is a regulatory system that aims to balance consumer choice, grid stability, and policy ambition.
