India’s state solar policies differ on net metering limits, open access rules, wheeling charges, banking and DISCOM approval steps. Each state also replaces its policy on its own schedule.
An EPC that wins a project in Maharashtra in 2026 faces different rules from one building the same project in Rajasthan. This guide covers the major solar states, the policy now in force in each, and the variables that should shape your project structure.
Quick answer. State solar policies in India in 2026 differ on six points: the net metering size cap, the open access threshold, open access charges, banking, the approval route, and storage or ALMM requirements. Three large states replaced their policies recently: Gujarat (Integrated RE Policy 2025), Maharashtra (RE and Energy Storage Policy 2025-26 to 2035-36) and Rajasthan (Integrated Clean Energy Policy 2024). Karnataka still runs on its RE Policy 2022-27 and Tamil Nadu on its Solar Energy Policy 2019, with the state regulator setting most charges.
TL;DR
- Gujarat: the Integrated RE Policy 2025 (24 December 2025) removes sanctioned-load caps for captive and third-party projects and exempts true captive projects from cross-subsidy and additional surcharge.
- Maharashtra: new solar projects above 100 kW seeking connectivity from 1 April 2026 must add storage of 1 MWh per MW. Green open access eligibility drops to 100 kW.
- Rajasthan: the 2019 solar policy no longer governs new projects. RICEP 2024 sets land caps, deposits and a facilitation charge, and leaves banking and wheeling to RERC.
- Karnataka and Tamil Nadu: older policies remain, so the KERC and TNERC orders decide most charges. Tamil Nadu levies network charges on every unit generated under net metering and net feed-in.
- In every state, regulator orders change charges more often than policies change. Check the current order before you model a project.
This guide is a comparative reference. Use the summary table to see which document governs each state, then read the state sections and the linked policy guides for the clause-level detail that affects your BOQ and DISCOM submission.
The Six-Dimension Solar Policy Framework
Before comparing states, it helps to define what “solar policy” means for an EPC. State solar policies have two tracks that affect projects differently.
Track 1, grid connection and net metering: governs how solar power flows to and from the grid for on-site consumption. It sets the maximum project size, billing treatment and approval process for rooftop and behind-the-meter systems.
Track 2, open access and third-party sale: governs how large consumers buy solar power from a remote generator and wheel it through the distribution or transmission network. It sets charges, banking and the minimum project size.
Within those two tracks, six dimensions decide project economics: the net metering limit, the open access threshold, the effective open access charge, banking, the approval route and timeline, and equipment rules such as ALMM or storage. In most states the policy sets the framework, while the state electricity regulatory commission sets the charges.
Rajasthan Solar Policy: RICEP 2024 Replaces the 2019 Policy
Rajasthan is India’s largest utility-scale solar state. In 2026, new projects fall under the Rajasthan Integrated Clean Energy Policy, 2024 (RICEP 2024), in force until 29 March 2029. It replaced the Rajasthan Solar Energy Policy 2019 and the 2023 RE policy. Projects registered under those keep their registration numbers but follow the new rules. Our Rajasthan solar park policy guide reads it clause by clause.
- Target: 90,000 MW of solar by 2029-30
- Registration: solar parks and captive or third-party projects register with Rajasthan Renewable Energy Corporation (RREC). Net-metered and gross-metered rooftop projects are exempt
- Land: government land is capped at 2.0 hectares per MW for fixed crystalline PV and 2.5 ha/MW with trackers, with a ₹1 lakh per MW land security deposit
- Facilitation charge: solar sold to buyers other than Rajasthan DISCOMs pays ₹50,000 per hectare per year. Captive use inside the state is exempt
- Banking and wheeling: the policy defers these to current RERC regulations, so take the figures from the latest RERC order
- Timeline: a project over 50 MW must be complete within 24 months of clearance
Rajasthan’s high irradiance and park infrastructure keep it the default state for large ground-mount and tender projects. Projects connect either through RVPN, the state transmission utility, or through CTUIL. See STU vs CTU transmission planning for how to choose.
Gujarat Solar Policy: The Integrated RE Policy 2025
Gujarat has India’s most mature rooftop solar market. Its current policy is the Gujarat Integrated Renewable Energy Policy 2025, issued on 24 December 2025 and valid to 31 December 2030. It supersedes the Gujarat RE Policy 2023. Our Gujarat solar policy guide covers each clause.
- Project size: no cap on captive or third-party projects linked to the consumer’s contracted demand or sanctioned load. AC capacity counts as installed capacity
- Surcharges: captive projects that meet the Electricity Rules 2005 test pay no cross-subsidy surcharge or additional surcharge. Third-party sale projects pay both at GERC rates
- Banking: settles on the billing cycle for a GERC banking charge. Without banking, settlement is per 15-minute block
- Rooftop: net or gross metering under GERC regulations. Group and virtual net metering wait for GERC to notify regulations
- Evacuation deadlines: 12 months at 11 kV, rising to 36 months at 400 kV, counted from the connectivity agreement
- Agencies: GEDA registers projects, GUVNL implements the policy, and GETCO grants connectivity
Rooftop net metering paperwork still runs through the DISCOMs. For the UGVCL process, see our UGVCL net metering guide.
Maharashtra Solar Policy: The 100 kW Storage Rule
Maharashtra has the largest commercial and industrial electricity demand in India. Its current policy is the Maharashtra Renewable Energy and Energy Storage Policy 2025-26 to 2035-36, notified on 18 March 2026 and valid to 31 March 2036. It replaces the 2020 policy. Our Maharashtra solar policy guide explains the storage math.
- Storage mandate: new solar or wind projects above 100 kW seeking connectivity from 1 April 2026 must add storage of 50% of RE capacity for 2 hours, which equals 1 MWh per MW. This covers rooftop and open access projects
- Commissioning: projects that need storage must declare commercial operation together with the storage
- Open access threshold: green open access eligibility drops to 100 kW from 1 MW
- Legacy projects: projects with in-principle grid connectivity before 18 March 2026 stay on the 2020 or 2015 policy and cannot switch
- Rooftop: net metering continues under MERC’s rooftop regulations. A shift to net billing for 10 to 100 kW is only a proposal until MERC acts
- Agency: projects register on MEDA’s single window portal
For rooftop drawings and submissions, see our MSEDCL net metering guide.
Watch out. A bid priced on 2025 assumptions for a Maharashtra project above 100 kW will be short on battery, drawings and schedule. The SLD, protection scheme and metering layout must show the BESS from the first submission.
Tamil Nadu Solar Policy: The 2019 Policy and TNERC Orders
Tamil Nadu’s solar rules sit in four layers. The Tamil Nadu Solar Energy Policy 2019 sets targets and size caps. TNERC Order No. 8 of 2021 sets metering options, feed-in tariffs and network charges. TNERC’s 2024 draft regulations propose group and virtual net metering. Our Tamil Nadu solar policy guide walks through each layer.
- Size cap: a consumer category system cannot exceed 100% of the sanctioned load
- Metering: domestic consumers get net metering. Other LT consumers get net feed-in, where exports earn a feed-in tariff of ₹3.10 to ₹3.61/kWh depending on system size
- Network charges: levied on every unit generated under net metering and net feed-in: ₹1.27/kWh for LT and ₹0.83/kWh for HT prosumers. Gross metering is exempt
- Open access: TNERC open access rules apply to HT consumers, and wheeling below 1 MW is not allowed
- Utility: TANGEDCO was restructured in 2024. TNPDCL, the renamed distribution company, now handles rooftop applications
Because network charges apply to all generation, size Tamil Nadu C&I systems to daytime load rather than roof area. For the application steps, see our TANGEDCO net metering guide.
Karnataka Solar Policy: RE Policy 2022-27 and KERC Open Access
Karnataka still runs on the Karnataka Renewable Energy Policy 2022-27, notified on 16 April 2022 and amended once in February 2023. It targets 10 GW of new renewable capacity, including up to 1 GW of rooftop solar. Our reading of the Karnataka solar policy covers fees and grid routes.
- Approvals: KREDL processes MW-scale applications. The ESCOMs, including BESCOM, run rooftop net and gross metering under KERC regulations
- Project size: a MW-scale solar project means at least 1 MWac. Captive and group captive projects have no minimum size
- Fees: open access applications cost ₹15,000 to ₹35,000 per MW, plus ₹2 lakh per MW processing and a ₹5 lakh per MW performance bank guarantee
- Open access: after the Karnataka High Court struck down the green energy open access rules in December 2024, KERC issued its Open Access Regulations 2025. Non-captive consumers need 100 kW or more of contract demand or sanctioned load, and banking is monthly
- Charges: wheeling, banking and cross-subsidy surcharge come from KERC tariff orders, which change every year
The 100 kW threshold keeps Karnataka open to mid-sized C&I consumers. Take current charge levels from the KERC website before you build a tariff model.
Comparative Summary Table: Policy in Force by State
| State | Policy in force (2026) | Key point for EPCs |
|---|---|---|
| Rajasthan | Integrated Clean Energy Policy 2024, to 29 March 2029 | Land caps of 2.0 to 3.0 ha/MW; banking and wheeling per RERC |
| Gujarat | Integrated RE Policy 2025, to 31 December 2030 | No sanctioned-load cap for captive or third-party; captive exempt from CSS |
| Maharashtra | RE and Energy Storage Policy 2025-26 to 2035-36 | Storage of 1 MWh per MW above 100 kW; green OA from 100 kW |
| Karnataka | RE Policy 2022-27 (amended 2023) | KERC Open Access Regulations 2025; 100 kW threshold; monthly banking |
| Tamil Nadu | Solar Energy Policy 2019 plus TNERC Order No. 8 of 2021 | Network charges on all generated units; size to daytime load |
For open access thresholds and charges in other states, including Andhra Pradesh, Telangana and Uttar Pradesh, see our 2026 state guide to solar open access.
Uttar Pradesh: Large Market, More Administrative Work
UP has one of India’s largest electricity consumption bases, but EPCs report more administrative friction there than in the western and southern states.
- Approvals: plan for longer DISCOM approval cycles than in Gujarat or Karnataka, and build the buffer into the schedule
- Grid quality: voltage fluctuations and outages on weaker feeders can trip inverter protection and add yield loss, so check feeder data during design
- PM-KUSUM: agricultural pump solarisation under PM-KUSUM is a separate market segment from standard C&I
Check open access charges for UP against the current UPERC order before pricing a project.
State Solar Policies for Floating Solar
India’s floating solar market has additional state-specific layers beyond the standard solar policy framework. States with significant reservoir area, Telangana, Andhra Pradesh, Karnataka, Kerala, and Odisha, have issued floating solar-specific policies under their state water resources or irrigation departments:
- Telangana: Floating solar on Irrigation Department reservoirs requires an NOC from the Irrigation & CAD department in addition to DISCOM connectivity
- Karnataka: Karnataka Power Corporation Limited (KPCL) manages floating solar on hydro dam reservoirs with a specific RFP process
- Odisha: GRIDCO manages floating solar tenders on river barrage reservoirs
For EPCs working in the floating solar segment, see the detailed floating solar analysis for state-specific project structures.
The State Selection Matrix: Which Policy Regime Fits Your Project?
Utility-Scale SECI / MNRE Tender Projects
Common states: Rajasthan (high irradiance and park infrastructure) and Gujarat (clear evacuation deadlines under the 2025 policy). SECI and MNRE tenders are typically executed as large ground-mount solar parks connected via ISTS (CTU), which bypasses state wheeling charges. State selection is then mainly about irradiance, land and evacuation.
C&I Open Access (Captive or Third-Party Sale)
Gujarat favours true captive projects, which pay no cross-subsidy or additional surcharge. Karnataka and Maharashtra both open green open access from 100 kW, but Maharashtra adds a storage requirement above 100 kW. In Rajasthan, sale outside the state DISCOMs carries the RICEP facilitation charge. Price every case on the current regulator order.
Rooftop Net Metering (Commercial/Industrial Self-Consumption)
Rooftop self-consumption avoids wheeling charges, so focus on DISCOM approval steps and settlement rules. Watch the state-specific traps: Tamil Nadu's network charges on generated units, and Maharashtra's storage rule for rooftops above 100 kW.
PM-KUSUM Agricultural Solar
State targets and subsidy rates vary, and Gujarat's 2025 policy routes feeder solarisation through substation-wise DISCOM lists. Check the current state nodal agency's implementation plan before committing to a bid.
Need DISCOM-format drawings for your state?
Heaven Designs delivers DISCOM-compliant SLDs, net-meter drawings, and connectivity application packs formatted to the requirements of each state's DISCOM, MSEDCL, UGVCL, BESCOM, TANGEDCO, and more.
Get the sample pack →How Heaven Designs Helps
State-specific solar policy drives project structure decisions before the design stage begins. Heaven Designs works across the major Indian states and prepares drawings to each DISCOM’s format, connectivity process and document standards. Our DISCOM net metering guide covers the approval process state by state.
- Electrical CEIG Drawings, state CEIG and DISCOM format SLD, key plan, net-meter drawing for all major Indian states.
- Solar Rooftop Detailed Engineering Design, full IFC pack for rooftop net metering applications across India.
- Solar Ground Mount Design, utility-scale and C&I ground-mount design aligned with state-specific DISCOM and STU connectivity requirements.
- MW-Scale PMC, state-level regulatory navigation for open access and utility-scale projects.
Contact us to discuss your state-specific solar project structure and compliance requirements.
FAQ
Which Indian states have new solar policies in 2026?
Three large states have replaced their policies recently. Gujarat issued its Integrated RE Policy 2025 on 24 December 2025, Maharashtra notified its RE and Energy Storage Policy on 18 March 2026, and Rajasthan’s Integrated Clean Energy Policy 2024 replaced its 2019 solar policy. Karnataka (RE Policy 2022-27) and Tamil Nadu (Solar Energy Policy 2019) have not notified successors that we could verify.
What is the cross-subsidy surcharge and how does it affect solar project economics?
The cross-subsidy surcharge (CSS) is levied on open access consumers to compensate DISCOMs for revenue lost when industrial consumers leave grid supply. Rates are set by each state commission and vary by consumer category. Gujarat’s 2025 policy exempts captive projects that meet the Electricity Rules 2005 test, which makes captive status the biggest cost decision there.
High CSS reduces the saving from open access solar. Modeling it across states requires a proper commercial solar ROI calculation rather than a rule-of-thumb tariff comparison.
Does the MNRE PM-KUSUM scheme have different requirements from state to state?
Yes. PM-KUSUM has a central framework, but state subsidy amounts, beneficiary selection, application formats and DISCOM approvals vary by state. Our PM-KUSUM explainer covers the central rules. Always verify the current guidelines with the state nodal agency before committing to a PM-KUSUM bid.
What are the net metering rules for commercial rooftop solar in Maharashtra?
Net metering continues under MERC’s Grid Interactive Rooftop Regulations 2019 and their amendments, with MSEDCL procedures for the application. The 2026 policy adds a storage requirement of 1 MWh per MW for rooftop projects above 100 kW seeking connectivity from 1 April 2026. Its proposed net billing for 10 to 100 kW needs MERC action before it applies.
How do I estimate open access costs for a C&I solar project in Karnataka?
Start with the one-time fees in the Karnataka RE Policy 2022-27: an application fee of ₹15,000 to ₹35,000 per MW, a ₹2 lakh per MW processing fee and a ₹5 lakh per MW performance bank guarantee. Then add wheeling, transmission and cross-subsidy surcharge from the current KERC tariff order. Those charges change each year, so do not reuse last year’s figures.
What documentation does a DISCOM require for a net metering connection in Rajasthan?
The Rajasthan DISCOMs (AVVNL, JDVVNL, JVVNL) typically ask for the application form, a recent electricity bill, proof of ownership, the load sanction letter, a single-line diagram, a roof plan with the module layout, and ALMM details for the modules. Net-metered rooftop projects do not need RREC registration under RICEP 2024. Confirm the current checklist on the DISCOM portal before you submit.
If an application comes back on formatting or documentation grounds, our guide to DISCOM net metering rejection reasons covers the most frequent issues and how to fix each one.