The Rajasthan Electricity Regulatory Commission (RERC) has dismissed a petition filed by Shree Cement Ltd. against the Jaipur Vidhyut Vitran Nigam Ltd. (JVVNL) regarding the denial of a load factor rebate for its captive solar power plant. The petition, considered throughout late 2025, focused on whether solar energy generated “behind the meter” should be counted when calculating a consumer’s total load factor for discounted electricity rates. Shree Cement operates a grinding unit in Jobner with a contract demand of 7.40 MVA and an internal captive solar plant of 7.08 MW, commissioned in March 2023.
The company argued that its internal solar consumption should be added to its Discom supply load factor, which would make it eligible for a lower energy charge. However, JVVNL maintained that the rebate only applied to solar plants connected to the grid via net metering or open access, and not to “behind the meter” installations like Shree Cement’s plant. The Commission sided with JVVNL, clarifying that “parallel operation” is a technical consent for system protection and does not meet regulatory requirements for energy accounting or eligibility for tariff benefits.
The ruling emphasized that behind-the-meter plants already enjoy a “privileged position” because they allow self-consumption without paying open access charges or other financial obligations. Therefore, such installations cannot be treated the same as grid-connected captive plants for rebate purposes unless the regulations explicitly allow it. The Commission found no violation of the Tariff Order and disposed of Shree Cement’s petition on December 31, 2025.
The decision clarifies that rebates under the RERC Tariff Order are meant only for plants with clear grid connectivity and do not extend to internal behind-the-meter solar generation. This ruling reinforces the distinction between self-consumption from captive solar plants and incentives meant for grid-connected installations, providing clarity to industrial consumers and Discoms regarding eligibility for load factor rebates. The case highlights the importance of understanding regulatory provisions when claiming benefits, especially in situations where technical approvals do not automatically confer tariff advantages.
The Commission’s decision ensures that behind-the-meter consumers continue to enjoy self-consumption benefits, while rebates are preserved for grid-linked solar projects, maintaining a fair and consistent framework for electricity tariff incentives in Rajasthan. The petition’s dismissal marks a key precedent in how captive solar plants are treated under RERC regulations, particularly in the context of load factor-based energy charges. It underscores the need for clear definitions of connectivity and eligibility for financial incentives under the Tariff Order.