Rajasthan’s New Rooftop Solar Tariff Policy 2025 - Big Boost for Solar Users

In a significant boost for rooftop solar adopters in the state of Rajasthan, the state’s major distribution utility and regulatory apparatus have revised upwards the remuneration rates for surplus solar energy injected into the grid. Under the revised mechanism, domestic rooftop solar systems exporting power to the grid will now receive ₹ 3.26 per kilowatt-hour (kWh) under the net-metering regime and ₹ 3.65 per kWh under the net-billing regime. 

What Exactly Has Changed?

Earlier, the feed-in or export tariff (for surplus solar units sent to the grid) under the domestic category in Rajasthan stood at ₹ 2.71 per unit (kWh) under the net-metering regime, and ₹ 3.04 per unit under net-billing. These have now been raised to ₹ 3.26 and ₹ 3.65 respectively. This means an increase of roughly 20%–25% in the export rate for rooftop solar owners, which is meaningful in improving the pay-back and economics of rooftop solar investments.

Definitions: Net-Metering vs Net-Billing

To appreciate the impact, it’s useful to recall the difference between net-metering and net-billing:

• Net-metring: Here the consumer’s rooftop solar generation is first used to offset their own consumption. Any surplus is exported to the grid and typically credited at a value (which may be the retail tariff or other agreed rate). At the end of the billing period, the net import (if any) from the grid is billed, and the net export may be carried forward as credit, depending on the regulation.
• Net-billing: Under this arrangement, the solar generator sells the entire generation to the grid at a specified export rate, and separately buys consumption from the grid at the consumption tariff. Thus, export units are remunerated at the export tariff (which may be lower than retail), and imports are charged independently. This is often used where self-consumption is minimal or for commercial/residential setups where simpler billing is desired.
  

The revision in Rajasthan’s tariffs clearly distinguishes between the two: exporting under net-metering gets ₹ 3.26, while net-billing export gets ₹ 3.65. The higher rate in net-billing perhaps reflects that such systems are more purely export oriented and thus remunerated differently.

Why Did Rajasthan Make This Change?

There are multiple motivating factors behind this policy move:

1. Encouraging rooftop solar uptake – Rajasthan has abundant solar resources and a strong policy push to expand decentralised solar generation (rooftop and small-scale). Raising export rates increases the attractiveness of rooftop solar and helps stimulate investment.
2. Reflecting downward solar generation costs and competitive bids – Tariffs for large-scale solar projects in Rajasthan have fallen significantly (for example, several tenders have discovered tariffs around ₹ 2.78-₹ 3.04 per kWh). The higher household export tariffs are thus being aligned to reflect improved economics and reduce the delta between grid power purchase cost and rooftop export cost.
3. Grid balancing and prosumer participation – By incentivising rooftop solar exports, the utilities reduce the burden on grid-generation and transmission, particularly in high-irradiance states. Consumer herself becomes a “prosumer” (producer + consumer), which supports distributed generation and easing centralised load.
4. Policy alignment with national and state targets – Rooftop solar is a key pillar in achieving India’s renewable energy goals, and for Rajasthan’s own state clean-energy vision. The tariff revision sends a strong signal of commitment to rooftop solar deployment.
   
   

What Does This Mean for Rooftop Solar Owners?

For a typical homeowner installing a rooftop solar system in Rajasthan, here's how the new tariff will improve economics:

• Suppose a system generates surplus 1,000 kWh in a year (after covering their own daytime consumption). At the old export rate of ₹ 2.71 the revenue would have been ~ ₹ 2,710. Under the new rate, at ₹ 3.26, it becomes ~ ₹ 3,260—a gain of ~ ₹ 550/year purely by higher export rate.
• For net-billing at ₹ 3.65 per kWh, the revenue would be ₹ 3,650 for 1,000 kWh of exports further enhancing returns.
• Over a 10-year horizon, the incremental gain adds up meaningfully, improving payback and reducing the effective cost of solar.
• Combined with any government subsidy (central or state) and roof-self-use savings, the higher export rate increases the attractiveness of rooftop solar investment.
  
  

Considerations and Eligibility

Of course, this benefit is subject to certain conditions:

• The revised rates apply primarily to domestic category consumers under the relevant distribution utilities (for example the Jaipur Vidyut Vitran Nigam Ltd. (JVVNL) order dated October 27, 2025.
• The rooftop solar system must be grid-interactive, compliant with metering/technical standards, and connected under the applicable regulations of the Rajasthan Electricity Regulatory Commission (RERC).
• The export must be measured via meter and credited per the distribution licencee’s guidelines.
• The benefits may vary depending on domestic vs commercial category, capacity limits, sanctioned load, and phases of scheme eligibility.
• While the export rate has increased, consumers should still evaluate their overall benefit including self-consumption, savings on grid import, subsidies, capital cost, system maintenance and lifespan.
  
  

Broader Implications for the Rooftop Solar Market

This revision has several implications for the rooftop solar ecosystem in Rajasthan:

• Increased demand for rooftop installations – With better remuneration, more households may be motivated to adopt rooftop solar, especially those with higher daytime use or export potential.
• Greater business opportunity for solar companies – Installation firms, EPC contractors, solar module manufacturers and local service providers are likely to see stronger demand and improved business case for rooftop solar projects in the residential segment.
• Improved payback metrics – The higher export rates will reduce payback periods, improving internal rate of return (IRR) for rooftop solar investments. This can also aid financing and loans for rooftop solar by making projects more bankable.
• Grid-benefit and decarbonisation – More rooftop solar exports help reduce dependence on centralised fossil generation, reduce transmission losses (as supply is proximate), contribute to the state’s renewable penetration and support decarbonisation goals.
• Potential upscale of community/shared solar – While this specific tariff revision focuses on domestic rooftop installations, the favourable economics may catalyse interest in group net-metering, virtual net-metering and shared solar projects in multi-dwelling units, housing societies, commercial/industrial premises.
  
  

Challenges and Things to Watch

Even with the positive news, some challenges remain and stakeholders should be mindful:

• Capital cost of rooftop systems – While benefits on export are improved, the upfront cost (modules, inverters, civil works, wiring, etc.) still matters deeply for ROI. Consumers need to evaluate system size, self-use optimisation and export volume.
• Technical and metering requirements – The system must meet grid-connectivity norms, safety standards and metering rules (including interconnection, isolation, inverter standard, etc.). Poor installations or non-compliance may reduce benefits.
• Roof suitability and maintenance – Not all rooftops may be ideal (shading, orientation, structural strength, roof life, wiring). Maintenance, cleaning, monitoring are necessary to achieve expected generation.
• Export volume uncertainty – Remuneration applies to surplus units exported. If self-consumption is high and exports low, the actual extra revenue will be limited. Thus, generation profiles, consumption patterns and export potential need assessment.
• Regulatory stability – While the tariff has been revised now, consumers should stay aware of regulatory changes, possible further tariff shifts, revisions in metering rules, etc. A stable policy regime helps investor confidence.
• Grid integration and transformer limits – Distributed rooftop solar when aggregated may stress local distribution transformer limits. Some regulations set caps on rooftop system size relative to load/transformer headroom.

Strategic Considerations for Potential Adopters

For homeowners in Rajasthan considering rooftop solar in light of the new export tariffs, here are some strategic points:

• Size the system appropriately – Optimally size the rooftop system to match your daytime load and export potential. Too small, you miss self-use savings; too large, export is higher but may exceed sanction limits or transformer headroom.
• Maximise self-consumption – Use the generated solar power immediately within the household (pooling daytime loads, shifting appliances, using timers) so that you reduce grid import and increase export. The higher export rate now makes even surplus export attractive.
• Choose quality equipment – Since economics are improved, ensure you invest in high-efficiency modules (for example N-Type, TOPCon if available), reliable inverters, proper earthing, monitoring system. Better generation yields better export.
• Check subsidy eligibility – Combined with central/state subsidies (for example under the PM Surya Ghar Muft Bijli Yojana or other state rooftop subsidy schemes) the effective cost of a rooftop system can come down significantly. For Rajasthan, there are state-specific subsidies and benefits.
• Calculate payback with the new export rate – Revise your financial model for the system, using the new ₹ 3.26 export rate (or ₹ 3.65 for net-billing) to estimate annual revenue, savings, payback period, ROI.
• Mind long-term maintenance and monitoring – A rooftop system works over decades. Keep an eye on performance, cleaning, inverter replace-ability, monitoring software, warranty claims.
• Stay informed of meter/tariff rules – Since rules of metering, transformer load limits, export caps and net-billing vs net-metering eligibility may evolve (for example recent changes around group/virtual net-metering).
  
  

Wider Policy and Market Context in Rajasthan

This tariff revision comes at a time when Rajasthan is actively ramping up its renewable energy strategy:

• The state’s regulatory commission (RERC) has rolled out reforms to promote virtual and group net-metering, shared solar systems, and simplified rules for distributed renewable energy systems.
• The state continues to benefit from one of India’s highest solar insolation hours, making distributed rooftop solar especially viable.
• Competition in utility-scale solar has driven down tariffs to levels well below ₹ 3.50 per kWh in Rajasthan, thus creating headroom for rooftop export tariffs.
• The policy ecosystem is enriched by state solar policies, subsidy frameworks, and building-byelaw adaptations for mandatory solar in large buildings. For example, Rajasthan’s Solar Energy Policy (2019) laid out clear measures to strengthen the rooftop solar segment
  
  

Impact Summary

In summary, the key impact of the ₹ 3.26/kWh (net-metering) and ₹ 3.65/kWh (net-billing) export tariffs for rooftop solar in Rajasthan is:

• Stronger economic incentives for households to install rooftop solar and export surplus power.
• Improved return on investment (ROI) and shorter payback for rooftop solar systems.
• Better alignment of tariff policy with falling solar generation costs and competitive large-scale bids.
• Acceleration of the decentralised solar energy transition, with household rooftops contributing more actively to the grid.
• Enhanced role of prosumers in the state’s electricity ecosystem—consumers who also generate power.
  
  

Conclusion

For homeowners, residential housing societies and small-scale solar adopters in Rajasthan, the recent tariff revision offers a compelling value proposition. With export rates nudged from ₹ 2.71 to ₹ 3.26 per unit and from ₹ 3.04 to ₹ 3.65 per unit for net-metering and net-billing respectively, the cost-benefit equation of rooftop solar improves significantly. This policy update dovetails with wider regulatory liberalisation and subsidy frameworks, making this an opportune time to evaluate rooftop solar adoption.

As the rooftop solar landscape evolves, staying informed about rules, system sizing, self-consumption strategies and quality installation will chart the difference between an “average” and an “excellent” return on your solar investment. In a state blessed with abundant sun and with policy tailwinds, this tariff revision is a noteworthy step in making solar power more accessible, economically viable and widely adopted.