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Growing Demand for Rooftop Solar Expected to Offset Adverse Impact of Cap on Net Metering

Stakeholders demand the net metering cap back at 1 MW coupled with easy finance and tax breaks for clients

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Net metering, one of the vital policy drivers for rooftop solar adoption, has witnessed a series of revisions in India in the past few months. Net metering for rooftop solar systems was capped at 1 MW until the government proposed to drastically cut it to 10 kW in December 2020. Several stakeholders believed the government’s proposal would destroy the rooftop solar market. After a lot of opposition and representation by the industry, the government relented to allow net metering for capacity up to 500 kW.

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