Mgvcl Solar Net Metering Agreement

MGVCL Solar Net Metering Agreement: What You Need to Know

Solar energy has grown in popularity in recent years as more and more people embrace the concept of clean energy and its role in reducing carbon emissions. In fact, Gujarat has emerged as one of the leading states in India when it comes to solar power generation. The state`s move towards renewable energy also includes a net metering policy that allows solar panel owners to sell excess power back to the grid.

In Gujarat, the power distribution company that handles the state`s energy needs is MGVCL (Madhya Gujarat Vij Company Limited). If you are interested in setting up a solar panel system in Gujarat, you will need to enter into an agreement with MGVCL for net metering. In this article, we will discuss the key points you need to know about the MGVCL solar net metering agreement.

What is Net Metering?

Net metering is a billing arrangement that allows solar panel owners to receive credits for any excess power they produce and feed back into the grid. Essentially, it allows them to offset their electricity bills with the excess power generated by their solar panels.

For example, if your solar panel system generates more electricity than you use during daylight hours, the excess energy is fed back into the grid. This excess power is credited to your account, effectively reducing your electricity bill. If your solar panel system generates less energy than you use, you will still receive electricity from the grid, and you will be billed for the net amount consumed.

MGVCL Solar Net Metering Agreement

To avail of net metering benefits, you will first need to enter into an agreement with MGVCL. The agreement outlines the terms and conditions that govern the installation and operation of the solar panel system. Here are some key points to keep in mind when entering into an MGVCL solar net metering agreement.

Eligibility: Only customers connected to the low-tension distribution network are eligible for net metering. Any excess energy fed back into the grid is credited at the same rate as the applicable tariff for respective consumer category.

Capacity Limit: The maximum capacity for net metering is 50 kW for residential and non-residential customers. However, customers can install a solar system beyond the 50 kW limit by entering into open access agreements with the distribution company.

Installation and Commissioning: The customer is responsible for installing and commissioning the solar panel system according to MGVCL guidelines and safety standards. The customer needs to provide a certificate of compliance from a competent authority.

Agreement Period: The agreement between the customer and MGVCL is valid for a period of 25 years.

Metering Arrangement: MGVCL will install two meters – a bi-directional meter and an import/export meter – to measure the consumer`s energy usage and the excess energy fed back into the grid. The customer will bear the cost of the metering arrangement.


MGVCL`s net metering policy is a great incentive for solar panel owners in Gujarat. It offers a way to reduce electricity bills, while also promoting clean energy. If you are interested in setting up a solar panel system, make sure you understand the terms and conditions of the MGVCL solar net metering agreement and comply with the guidelines laid out by the distribution company.

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