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Renewable Energy Solar Associations in Kerala has opposed the draft regulations of the State Electricity Regulatory Commission, which recommends withdrawing the Net Energy Metering System above 3kW.
These tariff and regulatory barriers, according to the associations, are depriving the consumers of the announced benefits of the Union Government under the national programmes. Besides, the draft release mandates storage solution for the solar capacity above 3kW which will increase the cost.
These regulations, if notified, would cause a downfall in Kerala’s renewable energy capacity, affecting the net zero ambitions of Kerala. The major Distribution Licensee KSEBL would not be able to meet its Renewable Purchase Obligations. This would have direct impact on electricity prices as KSEBL would be forced to buy electricity from outside the State to meet its demand, leading to energy prices to rise uncontrolled.
Solar industry in the last financial year has contributed ₹600 crore approximately towards GST Kerala component. The State has seen a sales volume of ₹5,000 crore on the last financial year.
These challenges are forcing the consumers to withdraw from participation from the schemes. The market for solar has declined sharply from a monthly 250~300 MW installation rate to a meagre 20~50 MW in the last fortnight since this draft notification.
Gaining clean-tech edge
To have decarbonisation in electricity sector, it is necessary to have larger share of renewable energy in our network. Kerala implements national programmes like PM Surya Ghar and PM Kusum in accelerating faster adoption towards green energy.
However, the current draft of the Electricity Regulatory Commission notifying the regulation for next control period 2025-30 offers little scope in furtherance of a green energy adoption.
The stakeholders appeal to the Government to take a lenient approach to the situation as the solar installer community assures a greener future for the state.
The association members are Kerala Renewable Energy Entrepreneurs & Promoters Association (KREEPA); Confederation of Renewable Energy (CORE); Masters Solar Association ; Renewable Energy Companies Consortium (RECC).
Published on June 18, 2025
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