New regulations for solar plants in Kerala

The number of solar prosumers in Kerala is seeing a spike. As of February 2025, 1723 MW of electricity was generated through the installation of solar systems. Consumers are switching to solar to escape the heavy electricity tariff that reaches them every two months.

Generating electricity using solar panels, which provides endless energy, is the most advanced method of solving the world's energy crisis. It should be encouraged, which is why the central government is providing subsidies to those who install solar systems.

The Kerala State Electricity Board (KSEB), which used to give lectures to consumers suggesting frugal use of electricity, is now showing antipathy to the solar surge in Kerala. There were even rumours that KSEB was going to stop the net metering method (measuring the difference between the amount of electricity your solar panels produce and the amount you consume).

Amidst the ambiguity over the rules, the Regulatory Commission notified the new rules applicable to renewable electricity generation. It will be in effect until 2030. The most beneficial aspect of the new rule is that solar producers can continue with the current profitable net metering system without a battery up to 10 kW.

In Kerala, the majority of consumers install a three kW solar system. Those with a larger number of members and house area will install 5 kW. Therefore, a common consumer will not have to install a battery for storage along with installing solar. Since the battery will cost at least fifty thousand rupees, most people can escape that additional liability. According to the new rule, existing ones can install battery storage up to 20 kW and continue with net metering.

The excess electricity from a solar plant under net metering can be used in other industrial establishments of that producer. This will be very beneficial for those who run small manufacturing units near their homes. All plants that have obtained feasibility certificates by Thursday will be considered part of the rule. The new billing system will come into effect from January 1, 2026.

Similarly, the surplus electricity after the usage of each month can be put to use in the following months. Existing prosumers will get Rs 3.8 per unit for the surplus at the end of the financial year and Rs 2.79 for new prosumers. The new rules are generally welcome, and the biggest relief is putting an end to the confusion.