Solar EPC for Factories in Karnataka: DISCOM Rules, Approvals and Cost
A factory in Karnataka can connect 50 kW or more of rooftop solar under net metering, net billing, gross metering or behind the meter, under the KERC Distributed Solar PV Regulations, 2026 (notified 19 August 2026). Net metering is open to all categories, up to the lower of sanctioned load or 1,000 kW. At the published ₹24,000–32,000 per kW excluding GST, 1 MW is roughly ₹2.4–3.2 crore.
Who regulates, connects and inspects a factory plant in Karnataka?
Four bodies matter. The Karnataka Electricity Regulatory Commission (KERC) writes the metering rules and sets the export tariff. Your distribution licensee connects the plant, installs the meters and signs the agreement; the licensees include BESCOM, MESCOM, HESCOM, GESCOM and CESC Mysore, and your electricity bill names yours. KREDL, the state renewable energy agency, publishes the cumulative approved and commissioned capacity that decides how long the net-metering window stays open. The Chief Electrical Inspector's office comes in on electrical safety, and the regulation names it specifically where solar is combined with a diesel generator: safety approval from the CEIG is required before commissioning.
Technical compliance rests on the CEA safety, connectivity and construction regulations, which the KERC text cites. The licensee carries out the commissioning inspection and installs the generation and bidirectional meters at the consumer's cost. The bidirectional meter must be a smart meter, and every meter needs a communication port for advanced metering.
Which metering route can a factory use?
The 2026 regulation replaced the 2016 rooftop regulations. A draft published in June 2026 would have kept net metering for domestic and institutional consumers only and capped it at 500 kW. The notified text is different: net metering is open to every category, with a 1,000 kW ceiling. Pages written from the draft will tell a factory the route is closed. It is not, for now.
| Route | Capacity limit | What happens to exports | Usually fits |
|---|---|---|---|
| Net metering | 1 kW to the lower of sanctioned load / contracted demand and 1,000 kW | Offsets imports; surplus at month end is bought at the Commission's PPA tariff | Steady daytime load, plant sized below demand |
| Net billing | Up to sanctioned load / contracted demand | Imports at retail tariff, exports credited at the Commission's tariff, then netted | Plants above 1,000 kW, or where the net-metering window has closed |
| Gross metering | Up to sanctioned load / contracted demand | All generation sold to the licensee; consumption billed separately | Large roofs and low daytime load |
| Group net metering | 5 kW up to combined sanctioned load of the consumer's connections | Credits spread over the consumer's own connections; the source connection must use at least 20% of generation | Several units or plants under one owner |
| Behind the meter | Up to sanctioned load / contracted demand | No sale; reverse power relay required; export is treated as inadvertent and unpaid | Self-use only, no export at all |
Three conditions catch factories. Net metering and its 1,000 kW ceiling apply only until cumulative capacity reaches 3 GW. Fixed and demand charges are still payable whatever you export. And a consumer with pending arrears cannot install a plant under the regulation, unless the amount is disputed and deposited under Section 56 of the Electricity Act. Grid support charges are also allowed: the Commission may levy them on solar generation by order, so read the current tariff order.
Sanctioned load may be written in kW, kVA or HP, and a plant is rated in kW. Ask the licensee in writing how your contract demand converts before you fix the size. Our net-metering explainer and open-access solar page cover the other routes.
What are the steps and timelines?
For net metering above 150 kW and up to 1,000 kW, the regulation sets a timetable for the licensee:
- Acknowledgement of the online application: within three working days.
- Site verification, technical feasibility and a letter of approval or rejection: within ten working days of acknowledgement.
- PPA signed: within five working days of the approval letter.
- You submit the work completion report within 150 days of the PPA.
- Licensee inspects and commissions: within five working days of the report. The regulation puts a penalty of Rs 1,000 a day on the officer after that, and the consumer earns deemed generation.
- First bill: within 30 days of commissioning.
Plants up to 150 kW on a low-tension connection need no PPA; the online application is itself the approval to start. A plant under 150 kW must connect to your existing distribution transformer, and all solar on that transformer together may not exceed 80% of its rating. The service line up to the interconnection point is at the consumer's cost. These are the regulation's own limits, and the licensee's feasibility check applies on top.
Modules must also meet the central rules. Grid-connected plants use ALMM List-I modules. MNRE's 4 August 2026 memorandum exempts net-metering style projects (it defines these to include gross metering and net billing) commissioned by 31 December 2026 from List-II for cells, and puts private behind-the-meter captive plants outside both lists. Read the memorandum on the date you order. Our ALMM glossary entry explains the lists.
What does the cost band mean at 100 kW, 500 kW and 1 MW?
Secured Engineers publishes a C&I solar band of ₹24,000–32,000 per kW excluding GST on its solar EPC page. Larger plants sit towards the lower end. The figures are indicative, not a quotation.
| Plant size | Indicative range, ex-GST | Reference page |
|---|---|---|
| 100 kW | ₹24–32 lakh | 100 kW cost |
| 500 kW | ₹1.2–1.6 crore | 500 kW cost |
| 1 MW | ₹2.4–3.2 crore | 1 MW cost |
Inside the band the price moves with roof type and height, structure and wind design, cable runs, HT or LT interconnection, the licensee's metering scope, and module and inverter make. For output, KERC uses 19% as the planning capacity utilisation factor in its generic tariff; on 1 MW that is about 1.66 million units a year (1,000 kW x 8,760 hours x 0.19). That is the regulator's tariff assumption, not a yield promise for your roof. Put your own bill into the solar calculator for a first estimate.
Where is factory demand in Karnataka?
Demand follows industrial load: the Peenya, Bommasandra, Jigani, Harohalli and Doddaballapur belts around Bengaluru; Tumakuru and Kolar corridors; Mysuru; Hubballi–Dharwad and Belagavi; and the coast around Mangaluru. Each falls under a different licensee, so the form and the feeder check differ even when the plant is the same.
Where do Karnataka projects usually slip?
The plant is larger than the sanctioned load, so the sanctioned load must be raised before commissioning. The transformer is already near the 80% solar limit. The roof is old sheeting that needs strengthening, which is a structural question (see our roof load calculator). Or the meter and inspection steps are left until the plant is built. Ask every bidder who files the application, who pays meter and service-line costs, and who answers if the licensee asks for changes after installation.
How Secured Engineers helps
We design in-house and file the DISCOM net-metering application, CEIG papers and Fire NOC ourselves, and we can put MEPF and solar under one contract. We work from offices in Noida (Delhi NCR) and Ludhiana, with 535+ projects across 18+ states and 89.77% repeat clients. For a Karnataka site we mobilise from Noida and Ludhiana; we do not run a Karnataka office and this guide names no Karnataka project. Send a bill and a roof photograph and we will say which route fits.
See our solar EPC services, message us on WhatsApp, call +91 70099 85817, or ask for a free proposal.
Frequently asked
Can a factory in Karnataka use net metering for rooftop solar?
Yes. Under the KERC DSPV Regulations, 2026, consumers of all categories may use net metering for a plant of 1 kW up to the lower of the sanctioned load or contracted demand and 1,000 kW. This applies until cumulative net-metered, group and virtual capacity in the state reaches 3 GW, so ask the licensee for the current position before you apply.
What is the difference between net metering and net billing in Karnataka?
Under net metering the units you export offset the units you import in the same billing cycle, and only the net balance is billed. Under net billing, imports are charged at your retail tariff and exports are credited at the tariff set by the Commission, and the two money values are netted. Net billing is capped at the sanctioned load and has no separate 1,000 kW ceiling.
Do I need a power purchase agreement with the DISCOM?
For low-tension consumers up to and including 150 kW, no separate PPA is needed; the regulation's terms form part of the online application. Above 150 kW, up to 1,000 kW for net metering, a PPA is executed with the licensee within five working days of the letter of approval. Confirm the format with your licensee.
Is storage compulsory with a factory solar plant in Karnataka?
No. The notified regulations make hybrid inverters with batteries optional, and the stored energy may be used by the consumer. The Commission has said it will review the need for distributed storage after two years or when cumulative capacity reaches 3 GW, whichever is earlier, so the position can change.
Does ALMM apply to a Karnataka factory solar plant?
For grid-connected plants, modules must come from ALMM List-I. Under MNRE's 4 August 2026 memorandum, net-metering style projects commissioned by 31 December 2026 are exempt from List-II for cells. Private behind-the-meter plants used only for captive consumption are outside both lists. Check the latest memorandum before ordering modules.
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