If you own a rooftop solar system in Kerala — or are planning to install one — there is one policy development you cannot afford to ignore. The new KSERC 2025 regulations, effective from January 1, 2026, fundamentally reshape how net metering works in Kerala.

What Is Net Metering and Why Does It Matter?

Net metering is the arrangement that makes rooftop solar genuinely worthwhile. When your panels produce more electricity than your home uses during the day, the surplus flows back into the KSEB grid. At the end of the month, KSEB credits those exported units against your consumption — so you only pay for the "net" difference. Without net metering, excess solar energy is essentially wasted. With it, your panels work for you around the clock.

What Has Changed Under the 2025 Regulations?

The Kerala State Electricity Regulatory Commission (KSERC) introduced new Renewable Energy Regulations in 2025, which came into effect on November 6, 2025, with the new billing system starting January 1, 2026. Here is what is new.

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Three Metering Options Now Exist

Kerala consumers can now choose from Net Metering, Net Billing, or Gross Metering — each suited to a different system size and usage profile.

OptionEligible System SizeHow It Works
Net MeteringUp to 3 kW (or 5 kW with battery storage)Exported units credited against your bill as before
Net BillingUp to 500 kWExported energy valued at feed-in tariff (1.5× standard rate at peak hours), credited against total bill
Gross MeteringUp to 3 MWAll generation exported; compensated at 125% of SECI rates. Solar + storage earns up to ₹7/unit at peak

Other Key Changes at a Glance

  • System cap raised to 20 kW for domestic consumers — an increase from the previous limit.
  • Grid support charges introduced for systems above 10 kW. Systems up to 10 kW are fully exempt — good news for most homes.
  • Existing installations are protected. If you already have solar under the previous net metering arrangement, a grandfather clause lets you continue under your existing terms.
  • Faster approvals. KSEB must now confirm technical feasibility within 15 days and complete all approvals within 135 days — a significant improvement.
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Already Have Solar? You Are Protected.

Existing solar installations operating under the previous net metering framework are covered by a grandfather clause and can continue under their original terms.

What This Means if You Are Planning to Install Solar Now

The short answer is: act sooner rather than later.

If you are planning a system of 3 kW or below, the new regulations are straightforward and the process remains favourable. For larger systems — 5 kW and above — you will need to think carefully about whether to pair your system with battery storage to maximise net metering benefits under the new framework.

This is not a reason to delay — it is a reason to plan carefully. A system designed with the 2026 regulations in mind, sized correctly for your consumption, and paired strategically with storage if needed, can still deliver outstanding returns.

What You Should Do Right Now

  • If you already have solar: Check your system's registration status on the KSEB ekiran portal. Confirm that your net metering agreement is active and your bi-directional meter is correctly installed. If you have not yet applied for net metering — do it immediately before further policy changes come into effect.
  • If you are planning to install solar: Get a professional site assessment done now. Understanding your consumption profile, roof orientation, and system size requirement will help you design a system that works optimally under the 2026 regulations.
  • In either case, talk to a professional. Kerala's regulatory landscape is evolving rapidly. Having an MNRE-approved installer who understands the current rules is not optional — it is essential.

Stay Ahead of Kerala's Changing Solar Regulations

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