Virtual solar usually refers to virtual net metering (VNM) or community/group solar arrangements where the electricity produced by a solar system is not consumed on the same rooftop as the system. Instead, the solar plant (located onsite at a separate location or on a shared rooftop) feeds power into the grid, and the utility allocates monetary or energy credits from that generation to one or more electricity consumers’ bills. In short, you gain the financial benefits of solar (lower bills, renewable energy credits) without having panels on your own roof.
| Virtual Solar Explained |
How does it help consumers use solar energy?
1. Access for people who can’t install panels - Renters, apartment dwellers, shaded roofs, heritage buildings, or businesses with no spare roof space can still benefit from solar through a virtual share.
2. Economies of scale - A single, larger plant is often cheaper per kWh than many small rooftop systems — lower development, operation and maintenance costs.
3. Simplified billing (credits) - The utility’s billing software credits each linked consumer’s electricity account with a portion of the solar generation (either as kWh credits or rupee credits), reducing their monthly bill. That means the generated solar energy is used financially, even if the electrons flow through common wires. [pivotenergy.net]
4. Flexibility for organisations - Corporations, public bodies, or housing societies can pool demand and assign shares — useful for campuses or multi-site companies.
Let's look at it with an example -
Imagine a 100 kW off-site solar plant that generates 100,000 kWh/year. The utility credits the plant’s output to three consumers in the same license area:
- Consumer A: 40% share → 40,000 kWh credited
- Consumer B: 35% share → 35,000 kWh credited
- Consumer C: 25% share → 25,000 kWh credited
If the retail electricity price is ₹8 per kWh, the annual bill reduction (credit value) would be -
- A - 40,000 × ₹8 = ₹320,000 saved/year
- B - 35,000 × ₹8 = ₹280,000 saved/year
- C - 25,000 × ₹8 = ₹200,000 saved/year
Total credit value = 100,000 × ₹8 = ₹800,000 — the plant’s generation value is fully allocated among the three consumers. This shows how consumers “utilise” generated solar energy financially, even when panels are not on their own roofs. (Numbers used here are illustrative; actual generation, allocation rules and billing rates vary by project and utility.) [pivotenergy.net]
How the mechanism typically works -
1. A developer or group installs a solar system (off-site, rooftop of a public building, or a central plant).
2. The system exports power to the distribution grid.
3. The utility measures generation and, according to approved VNM/group-metering rules, assigns credits proportionally to each registered consumer’s account.
4. Credits offset consumption in the monthly bill (sometimes with limits on rollover or settlement rules).
Is the government using this in schemes?
Yes. In India, central agencies and state regulators have recognised and promoted virtual/group net metering -
The Ministry of New & Renewable Energy (MNRE) has issued guidance and a Standard Operating Procedure (SOP) for implementation of Virtual Net Metering and Group Net Metering (SOP published 23 Feb 2023). MNRE has also issued clarifications about the applicability of central financial assistance (CFA) for systems installed under Virtual Net Metering arrangements. These moves show the government formally supports VNM/GNM as an implementation model for rooftop and shared solar. [Source - Ministry of New and Renewable Energy]
Several state distribution utilities and program portals (e.g., PM Surya Ghar / rooftop portals) now include provisions or guidance for group/virtual metering in their rooftop solar programmes and application flows. Policy write-ups by think-tanks and research bodies (CEEW, etc.) explain how these models are being detailed in state regulations and utility procedures. [Source - PMSuryaghar]
Practical caveats & what consumers should check -
- Same license/utility area - VNM/GNM usually requires participants to be within the same distribution license area and meet the utility’s eligibility rules. [Source - CEEW]
- Allocation and settlement rules - how credits are calculated (kWh vs rupee), rollover, banking, expiration, and limits on matching demand can vary by state/utility. Read the local VNM/GNM tariff order or SOP. [Source - Ministry of New and Renewable Energy]
- Contract and ownership - Who owns the plant (consumer cooperatives vs. RESCO vs. third-party developer), who claims Renewable Energy Certificates (RECs), and responsible for maintenance should be clear in contracts. [Source - pivotenergy.net]
Virtual solar (virtual net metering) lets people share and get billed credits for solar generation from a shared or off-site plant — making solar available to renters, apartment residents, and organisations with limited roof space — and it’s an approach formally supported and operationalised in India through MNRE guidance and state/utility implementations.







