Is rooftop solar with no export to the grid allowed, and what does the electricity distribution company check?

The Ministry of New and Renewable Energy (MNRE) scheme treats systems that are connected to the grid but do not feed into it, including behind-the-meter and battery hybrid systems, as grid connected. For the subsidy, they need the state regulator's approval, and the distribution company inspects that reverse power relay protection works.

What the guideline says

This comes from the main text of MNRE's guidelines for its residential rooftop solar scheme, Pradhan Mantri Surya Ghar: Muft Bijli Yojana. It is written for residential connections, so treat it as a model for a factory, with your state's rules as the authority.

• Section 6, item (o), non metered grid connected systems: systems that are not feeding into the grid but are connected to the grid (behind-the-meter systems, battery hybrid systems etc.) shall be eligible for the subsidy under the scheme subject to approval by the respective Electricity Regulatory Commissions.
• In such cases the distribution company (discom) will inspect the installation, ensure the functioning of the reverse power relay protection and incorporate suitable remarks in the report.
• Off-grid connected installations will not be eligible for the subsidy under the scheme.

What that means for a factory

The subsidy itself is for residential connections, so it does not apply to a factory. My reading is that the same three ideas still tell you how a no-export plant is seen: it stays a grid-connected plant, the regulator's approval comes first, and the discom checks a reverse power relay, which is the protection that stops power flowing back out to the grid. The state's own rules decide the details, so ask your discom for its zero-export procedure in writing.

What to put in the quotation

• A reverse power relay on the incomer, with its make and the setting.
• My reading: ask which approval route your state regulator sets for a behind-the-meter plant, and who applies.
• A test at commissioning that shows the plant throttles back when the factory load is low.
• A note that surplus generation on a quiet Sunday is lost, because nothing is exported.

For your carbon figures

With no export, every unit made is used on site, so your grid import falls by the plant's whole output. Scope 2 is still the imports on the bill times the grid factor. Keep the monthly generation record, because the bill will not show it.

A no-export plant over one month (example numbers)

• Factory use: 39,700 kilowatt hours (kWh)
• Solar generation, all used on site: 18,500 kWh. Grid import: 39,700 minus 18,500 = 21,200 kWh
• Scope 2 with solar: 21,200 x 0.675 = 14,310 kilograms of carbon dioxide (CO2)
• Without solar: 39,700 x 0.675 = 26,797.5 kilograms. Difference: 12,487.5, which equals 18,500 x 0.675

Use and generation are example numbers. 0.675 kilograms of CO2 per kWh is the Central Electricity Authority grid factor for financial year 2025-26.

What Senseible does here

Senseible reads electricity bills into monthly records, so the units you import month by month sit in one place. It does not file approvals or test relays.

• Rooftop solar meters: what you get
• Will rooftop solar run in a power cut
• Does battery storage reduce Scope 2
• Why PM Surya Ghar does not cover factories

Sources: Ministry of New and Renewable Energy (MNRE), Guidelines for PM-Surya Ghar: Muft Bijli Yojana, Central Financial Assistance to Residential Consumers, with Annexures 2 to 4, Central Electricity Authority (CEA), CO2 Baseline Database, India grid factor for financial year 2025-26

Last reviewed 2026-11-06. Re-check clause numbers and figures against the current version of the guidelines before you rely on them. Approval for a behind-the-meter plant depends on your state commission, so check its current rules.