As solar energy adoption grows across residential, commercial, and industrial sectors, one major challenge remains: not everyone has suitable rooftop space to install solar panels. This is where Virtual Net Metering (VNM) becomes a game-changer.
Virtual Net Metering allows multiple electricity consumers to benefit from a single solar power plant, even when the solar system is not physically installed at their premises. It is especially useful for apartment complexes, commercial buildings, industries, and institutions spread across multiple locations.
In this article, we’ll explain what virtual net metering is, how it works, who can use it, and why it is becoming increasingly important in modern solar power systems.
1. What Is Virtual Net Metering?
Virtual Net Metering (VNM) is a billing mechanism that allows electricity generated from a single solar power plant to be virtually distributed among multiple electricity meters.
Unlike traditional net metering—where solar power offsets consumption at the same location—virtual net metering allows remote consumption. The energy credits generated by the solar plant are shared among multiple consumers based on predefined allocation ratios.
In simple terms:
One solar plant → multiple electricity bills → shared savings
2. Why Virtual Net Metering Was Introduced
Traditional rooftop solar has limitations:
- Limited rooftop space
- Structural constraints
- Shading issues
- Multiple tenants sharing one building
- Consumers located at different sites
Virtual Net Metering solves these problems by allowing:
- Centralized solar installations
- Flexible energy sharing
- Wider solar adoption
It plays a crucial role in expanding solar access to urban apartments, industrial parks, IT campuses, and government institutions.
3. How Does Virtual Net Metering Work? (Step-by-Step)
Step 1: Solar Plant Installation
A solar power plant is installed at a suitable location:
- Open land
- Industrial rooftop
- Warehouse
- Utility-approved solar site
This plant may be owned by:
- A single consumer
- A group of consumers
- A housing society
- A commercial entity
Step 2: Grid Connectivity
The solar plant is connected to the utility grid with:
- Bidirectional meter
- Generation meter
- TOD-enabled metering (where applicable)
Step 3: Consumer Mapping
Multiple consumer meters are mapped to the solar plant under Virtual Net Metering rules.
Each consumer is assigned a percentage or unit-based allocation of generated solar power.
Example:
- Consumer A: 40%
- Consumer B: 35%
- Consumer C: 25%
Step 4: Energy Generation & Export
Solar power is generated and exported to the grid during daylight hours.
Step 5: Virtual Credit Allocation
The utility:
- Measures total energy generated
- Allocates credits to each consumer’s bill
- Adjusts electricity charges accordingly
These credits offset consumption at each consumer’s meter—even though the solar plant is located elsewhere.
Step 6: Billing & Settlement
Electricity bills show:
- Gross consumption
- Virtual net metering credits
- Net payable units
4. Virtual Net Metering vs Net Metering
Feature | Net Metering | Virtual Net Metering |
Solar location | Same premises | Different location |
Number of consumers | Single | Multiple |
Rooftop required | Yes | No |
Ideal for | Individual homes | Apartments & businesses |
Flexibility | Limited | High |
5. Who Can Use Virtual Net Metering?
Virtual Net Metering is ideal for:
- Apartment complexes & housing societies
- Commercial office buildings
- Industrial units with multiple meters
- Educational institutions
- Hospitals
- Government buildings
- IT parks & SEZs
It is especially beneficial for tenants and consumers without rooftop access.
6. Benefits of Virtual Net Metering
☀️ Wider Solar Access
Even consumers without space can use solar energy.
💰 Reduced Electricity Bills
Solar credits reduce grid power consumption costs.
🏢 Optimized Land Use
Centralized installations are more efficient.
⚡ Scalable & Flexible
Easy to add or remove consumers.
🌱 Sustainability Goals
Supports carbon reduction and ESG targets.
7. Virtual Net Metering for Solar Power Systems
Virtual net metering works best with:
- Large rooftop solar plants
- Ground-mounted solar plants
- Open-access solar systems (subject to regulations)
It pairs well with:
- Commercial solar installations
- Industrial captive solar plants
- Hybrid solar + battery systems
8. TOD Billing and Virtual Net Metering
Virtual net metering works best with:
- Large rooftop solar plants
- Ground-mounted solar plants
- Open-access solar systems (subject to regulations)
It pairs well with:
- Commercial solar installations
- Industrial captive solar plants
- Hybrid solar + battery systems
9. Challenges and Limitations
While powerful, virtual net metering has limitations:
- Regulatory restrictions vary by state
- Approval timelines can be lengthy
- Credit carry-forward limits may apply
- Complex billing mechanisms
- Not available in all utility jurisdictions
Working with an experienced solar partner helps avoid delays and compliance issues.
- Regulatory restrictions vary by state
10. Is Virtual Net Metering Allowed in India?
Virtual Net Metering policies in India differ by state.
Some states allow:
- Group net metering
- Virtual net metering for specific consumer categories
- Solar for government or institutional use
Others may impose:
- Capacity limits
- Distance restrictions
- Cross-subsidy charges
Always check state electricity regulatory commission (SERC) guidelines before planning.
11. Is Virtual Net Metering Worth It?
Yes—when designed correctly.
It is especially worthwhile if:
- Rooftop installation is not possible
- Multiple consumers share energy needs
- Electricity tariffs are high
- Long-term cost savings are a priority
For many commercial and residential clusters, virtual net metering delivers better ROI than individual rooftop solar.
12. How XNERGS Helps with Virtual Net Metering
At XNERGS, we specialize in end-to-end solar solutions, including:
- Virtual Net Metering feasibility studies
- Solar plant design & engineering
- Regulatory approvals & utility coordination
- Installation & commissioning
- TOD billing optimization
- Ongoing monitoring & maintenance
Whether you’re a business, housing society, or institution, our team ensures maximum savings and smooth compliance.
13. FAQs
Is virtual net metering legal?
Can residential users use virtual net metering?
What happens to unused credits?
Does virtual net metering reduce electricity bills?
14. Conclusion & Next Steps
Virtual Net Metering is transforming how solar energy is shared and consumed. By removing location barriers, it enables wider solar adoption, better cost savings, and smarter energy management.
If rooftop solar isn’t an option for you, virtual net metering could be the smartest path to clean energy savings.
👉 To explore whether virtual net metering is right for your project, connect with the experts at XNERGS today.
- Headquarters:Near,O,Coquerio Circle, Chogam Road,Porvorim, Goa
- Direct Line: +91 890890556
- Email: info@xnergs.in
- Website: xnergs.in