For commercial and industrial consumers who lack adequate rooftop space — a common constraint for multi-story office buildings, data centres, or manufacturing units with high structural loads — the promise of solar savings has historically been limited by the size of the roof. Virtual net metering (VNM) changes this by allowing consumers to subscribe to off-site solar and receive grid credits against their electricity bills.
What the AP VNM Pilot Covers
Andhra Pradesh's APERC launched a virtual net metering pilot in 2025, initially available to LT and HT consumers in the APEPDCL and APSPDCL distribution zones. Under the pilot framework, a consumer can subscribe to a capacity share (in kW) in a designated community solar project — built, owned, and operated by an empanelled solar developer — and receive proportional generation credits monthly on their electricity bill.
The pilot projects are typically ground-mounted solar farms located within the same or an adjacent DISCOM feeder area. The proximity requirement ensures grid stability and simplifies the accounting of energy flows. APERC has specified the maximum subscription per consumer (currently capped at 100% of your average monthly sanctioned load), the settlement methodology (monthly net billing against your import bill), and the minimum subscription size.
Who Benefits Most?
The ideal VNM subscriber is an HT consumer — a hospital, IT/ITES company, hotel, or institutional campus — with high electricity consumption but insufficient rooftop area to offset meaningful load. Under a VNM subscription, such a consumer can subscribe to, say, 500 kW of off-site solar capacity and receive approximately 8.5 lakh units per year in grid credits — the equivalent of a 500 kW rooftop plant — without needing any rooftop space at all.
For an HT consumer paying ₹7.50/unit, those 8.5 lakh units in annual credits translate to ₹63.75 lakh in annual bill reductions — at a subscription cost that is typically priced as a PPA rate (₹4.50–5.50/unit), generating a net saving of ₹17–25 lakh per year with zero capex.
Key Regulatory Parameters (AP Pilot)
| Parameter | Specification |
|---|---|
| Eligible Consumers | LT Commercial & HT consumers in AP |
| Maximum Subscription | Up to 100% of average sanctioned load (kW) |
| Settlement | Monthly net billing; annual settlement at APPC |
| Project Proximity | Same / adjacent DISCOM feeder zone |
| Contract Tenure | 10–25 years (as per developer PPA) |
Current Status and What's Next
The AP pilot is in an early phase with a limited number of approved community solar projects. APERC is collecting data on settlement accuracy, feeder-level energy accounting, and consumer satisfaction before scaling the framework statewide. TGERC in Telangana has issued a concept paper on VNM and is expected to publish draft regulations for public consultation.
ARIA Green Energy is tracking both regulatory pipelines and will be among the first EPC partners to offer VNM-linked subscriptions to clients as the frameworks mature. If your facility has constrained rooftop space but high electricity consumption, register your interest with us now — we will notify you as soon as subscription opportunities become available in your DISCOM area.
Frequently Asked Questions
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