Live in a flat? You can still go solar — Here's how India's new policy makes it possible
But there's one problem: You don't own the roof, and neither do the hundred other families living in the building. In India's densely populated cities, this is not an exception- it's a rule.
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Imagine living in a rented flat in a high-rise building in Mumbai. You want to go solar—not just to reduce your electricity bill, but to contribute to a greener future. But there's one problem: you don't own the roof, and neither do the hundred other families living in the building. In India's densely populated cities, this is not an exception—it's the rule.While India's rooftop solar mission has made headlines, it has quietly left out a significant portion of its urban population: renters, apartment dwellers, and housing societies. But a quiet innovation—Virtual Net Energy Metering (VNEM)—is now being looked at as a powerful solution that could bring the solar revolution to every city balcony, rented flat, and cooperative society. The question is: can it scale, and will policymakers make it mainstream before the opportunity slips away? Virtual Net Energy Metering allows multiple electricity consumers—such as tenants in a building or members of a housing society—to collectively benefit from a single rooftop solar installation. Rather than each consumer installing separate solar panels, a shared system can be installed on a common roof or another designated location, with the energy credits distributed virtually to individual electricity accounts.This model is particularly attractive for cities like Delhi, Mumbai, Pune, Hyderabad, and Bengaluru, where high-rise living and rented accommodations are the norm. It enables democratised access to solar energy without needing direct rooftop ownership.'Consumers in cities are eager to participate in solar programs, but lack of rooftop access is a deal-breaker. VNEM solves that problem,' says Rahul Raizada, Partner – Climate and Energy, PwC India.India has shown early signs of embracing VNEM. The Ministry of New and Renewable Energy (MNRE) released operational guidelines in June 2024 under the PM Surya Ghar: Muft Bijli Yojana, which allows installations under group net metering and VNEM to be eligible for Central Financial Assistance (CFA). Sujjain Talwar , Co-Founding Partner, Economic Laws Practice, notes: 'The 2024 guidelines allow renters and housing societies to benefit from VNEM. But implementation is still fragmented across states.'Currently, states like Maharashtra and Madhya Pradesh have introduced VNEM through regulatory commission orders, but there is no unified national regulation. Electricity, being a concurrent subject under the Indian Constitution, means each State Electricity Regulatory Commission (SERC) has its own interpretation, criteria, and approval mechanism.Talwar adds, 'The Forum of Regulators should ideally release model VNEM regulations to drive uniformity and scale.'Despite the policy intent, real-world implementation remains a challenge. According to Raizada, VNEM alone is not enough—it must be accompanied by a comprehensive strategy that includes:1. Smart metering at the LT (low-tension) level, which is currently lacking2. Granular load flow studies, so DISCOMs can assess how shared solar affects their grids3. Consumer-meter coordination systems, to virtually assign energy credits accurately4. Billing system upgrades, especially for LT consumers'Our current billing infrastructure was not designed for dynamic, multi-user energy crediting,' says Raizada. 'VNEM at scale will require major software upgrades and rethinking of how we track and allocate solar units.'Perhaps the biggest invisible barrier to VNEM adoption is utility resistance. Distribution companies (DISCOMs), already under financial stress, fear that large-scale adoption of VNEM could erode their high-paying urban consumer base.'VNEM is seen as a threat to DISCOM revenue stability. But it doesn't have to be,' Raizada explains. 'If implemented strategically—with safeguards like time-of-day settlements, credit caps, and integration with storage—it could actually reduce peak demand stress and grid congestion.'DISCOMs could also be incentivised to identify high-density areas where VNEM makes grid sense—like high-rise apartments or commercial zones with constrained distribution capacity.One potential enabler lies in emerging digital technologies. Blockchain, for example, offers a transparent and tamper-proof way to track solar generation, consumption, and credit allocation.'Blockchain could automate VNEM settlements and resolve disputes, especially when multiple users are involved,' Raizada says.In the operational layer, third-party ownership models—offered by Independent Power Producers (IPPs) and Energy Service Companies (ESCOs)—can help address the issue of maintenance, performance, and billing, making VNEM more attractive to housing societies.In Delhi, several institutional users and RWAs have tested group net metering, while Chandigarh has proactively piloted community solar models under the guidance of CREST (Chandigarh Renewable Energy and Science & Technology Promotion Society).These examples show that with the right incentives and outreach, VNEM can succeed. However, experts caution that the model needs customization—urban India is not monolithic, and VNEM designs must accommodate different ownership patterns, tariff structures, and utility capabilities.For VNEM to truly revolutionize urban solar in India, the following must fall into place:1. Standardised regulations across states, ideally guided by model VNEM rules from the Forum of Regulators2. Digital upgrades to LT billing systems and smart meters3. Incentives for DISCOMs to adopt VNEM in grid-stressed urban zones4. Consumer education campaigns to build awareness of shared solar models5. Mandating inclusion of VNEM in PM Surya Ghar rollouts for high-density housing'Without solving for renters and multi-tenanted buildings, rooftop solar will remain a limited solution in India,' says Talwar.India's solar ambitions are bold and necessary. But they cannot be fulfilled unless we bring everyone along—not just homeowners with south-facing rooftops, but also renters in high-rises, families in old DDA flats, and tenants in gated societies.Virtual Net Energy Metering is not just a policy innovation. It's a path to solar equity, urban energy inclusion, and real climate resilience in our growing cities.It's a revolution waiting to be scaled. And with the right wires connected—policy, technology, and infrastructure—it just might power the next big chapter of India's clean energy journey.
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Off the beat, he enjoys running through Delhi's parks and forests, walking to places, and cooking pasta. ... Read More
