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Time of India
2 days ago
- Business
- Time of India
Live in a flat? You can still go solar — Here's how India's new policy makes it possible
But there's one problem: You don't own the roof, and neither do the hundred other families living in the building. In India's densely populated cities, this is not an exception- it's a rule. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Imagine living in a rented flat in a high-rise building in Mumbai. You want to go solar—not just to reduce your electricity bill, but to contribute to a greener future. But there's one problem: you don't own the roof, and neither do the hundred other families living in the building. In India's densely populated cities, this is not an exception—it's the India's rooftop solar mission has made headlines, it has quietly left out a significant portion of its urban population: renters, apartment dwellers, and housing societies. But a quiet innovation—Virtual Net Energy Metering (VNEM)—is now being looked at as a powerful solution that could bring the solar revolution to every city balcony, rented flat, and cooperative society. The question is: can it scale, and will policymakers make it mainstream before the opportunity slips away? Virtual Net Energy Metering allows multiple electricity consumers—such as tenants in a building or members of a housing society—to collectively benefit from a single rooftop solar installation. Rather than each consumer installing separate solar panels, a shared system can be installed on a common roof or another designated location, with the energy credits distributed virtually to individual electricity model is particularly attractive for cities like Delhi, Mumbai, Pune, Hyderabad, and Bengaluru, where high-rise living and rented accommodations are the norm. It enables democratised access to solar energy without needing direct rooftop ownership.'Consumers in cities are eager to participate in solar programs, but lack of rooftop access is a deal-breaker. VNEM solves that problem,' says Rahul Raizada, Partner – Climate and Energy, PwC has shown early signs of embracing VNEM. The Ministry of New and Renewable Energy (MNRE) released operational guidelines in June 2024 under the PM Surya Ghar: Muft Bijli Yojana, which allows installations under group net metering and VNEM to be eligible for Central Financial Assistance (CFA). Sujjain Talwar , Co-Founding Partner, Economic Laws Practice, notes: 'The 2024 guidelines allow renters and housing societies to benefit from VNEM. But implementation is still fragmented across states.'Currently, states like Maharashtra and Madhya Pradesh have introduced VNEM through regulatory commission orders, but there is no unified national regulation. Electricity, being a concurrent subject under the Indian Constitution, means each State Electricity Regulatory Commission (SERC) has its own interpretation, criteria, and approval adds, 'The Forum of Regulators should ideally release model VNEM regulations to drive uniformity and scale.'Despite the policy intent, real-world implementation remains a challenge. According to Raizada, VNEM alone is not enough—it must be accompanied by a comprehensive strategy that includes:1. Smart metering at the LT (low-tension) level, which is currently lacking2. Granular load flow studies, so DISCOMs can assess how shared solar affects their grids3. Consumer-meter coordination systems, to virtually assign energy credits accurately4. Billing system upgrades, especially for LT consumers'Our current billing infrastructure was not designed for dynamic, multi-user energy crediting,' says Raizada. 'VNEM at scale will require major software upgrades and rethinking of how we track and allocate solar units.'Perhaps the biggest invisible barrier to VNEM adoption is utility resistance. Distribution companies (DISCOMs), already under financial stress, fear that large-scale adoption of VNEM could erode their high-paying urban consumer base.'VNEM is seen as a threat to DISCOM revenue stability. But it doesn't have to be,' Raizada explains. 'If implemented strategically—with safeguards like time-of-day settlements, credit caps, and integration with storage—it could actually reduce peak demand stress and grid congestion.'DISCOMs could also be incentivised to identify high-density areas where VNEM makes grid sense—like high-rise apartments or commercial zones with constrained distribution potential enabler lies in emerging digital technologies. Blockchain, for example, offers a transparent and tamper-proof way to track solar generation, consumption, and credit allocation.'Blockchain could automate VNEM settlements and resolve disputes, especially when multiple users are involved,' Raizada the operational layer, third-party ownership models—offered by Independent Power Producers (IPPs) and Energy Service Companies (ESCOs)—can help address the issue of maintenance, performance, and billing, making VNEM more attractive to housing Delhi, several institutional users and RWAs have tested group net metering, while Chandigarh has proactively piloted community solar models under the guidance of CREST (Chandigarh Renewable Energy and Science & Technology Promotion Society).These examples show that with the right incentives and outreach, VNEM can succeed. However, experts caution that the model needs customization—urban India is not monolithic, and VNEM designs must accommodate different ownership patterns, tariff structures, and utility VNEM to truly revolutionize urban solar in India, the following must fall into place:1. Standardised regulations across states, ideally guided by model VNEM rules from the Forum of Regulators2. Digital upgrades to LT billing systems and smart meters3. Incentives for DISCOMs to adopt VNEM in grid-stressed urban zones4. Consumer education campaigns to build awareness of shared solar models5. Mandating inclusion of VNEM in PM Surya Ghar rollouts for high-density housing'Without solving for renters and multi-tenanted buildings, rooftop solar will remain a limited solution in India,' says solar ambitions are bold and necessary. But they cannot be fulfilled unless we bring everyone along—not just homeowners with south-facing rooftops, but also renters in high-rises, families in old DDA flats, and tenants in gated Net Energy Metering is not just a policy innovation. It's a path to solar equity, urban energy inclusion, and real climate resilience in our growing a revolution waiting to be scaled. And with the right wires connected—policy, technology, and infrastructure—it just might power the next big chapter of India's clean energy journey.
Time of India
26-05-2025
- Business
- Time of India
Law firms plot a new course through geopolitics
Mumbai: Geopolitical risk, once largely the domain of defence analysts and diplomats, is gradually gaining attention in corporate boardrooms, with companies increasingly recognising its potential impact, and law firms are seizing the business opportunity. An increasing number of law firms in the country are considering developing geopolitical risk assessment advisory services or enhancing their existing offerings by bringing in expertise across international relations, government policy, economics, cross-border taxation and regulatory risk to better support their clients. Firms such as DSK Legal, Economic Laws Practice, Trilegal and Capstone Legal are building their capabilities in this segment. "We are seeing an increasing number of questions being asked in relation to insurance cover, capex commitments and business projections, data privacy and employment agreements," said Anand Desai, managing partner, DSK Legal. "Force majeure clauses are negotiated more vigorously and companies are very sensitive about forex hedging and other similar measures, seen as prudent in the volatile and uncertain times we are living in." DSK Legal has a government policy and strategic advisory practice which is now actively collaborating with former bureaucrats, diplomats, defence experts, cross-border tax experts and economists. Live Events "In addition to our regulatory practice, we have established a crisis management and policy advisory practice, which are growing rapidly," said Desai. The importance of the advisory can be ascertained by the fact that DLA Piper, one of the biggest law firms in the world, is also reportedly in talks with the former UK Prime Minister David Cameron to associate with the firm for advising its clients on pressing cross-border issues. Major international law firms such as Hogan Lovells, Norton Rose Fulbright and Gibson Dunn have been advising clients on these issues for years. Ashish K Singh, managing partner at Capstone Legal, said the firm recently advised an Indian telecom value-added services provider in setting up a company in Nigeria, for which it had to engage an economist and accounting firm from the region to provide detailed geopolitical and legal risk analyses to the client. Similarly, a German company setting up a solar power plant in Rajasthan sought the law firm's help to understand the relationship between the state and the central government and its implications on businesses in the state. "As clients seek legal guidance not only on compliance and contracts but also on navigating political volatility , law firms are positioning themselves to offer counsel that spans beyond statutes, into strategy," said Singh. "Investors are more attuned to the potential impact of regional conflicts, sanctions regimes and shifting diplomatic alliances on everything from logistics and regulatory compliance to financial performance and brand perception." Suhail Nathani, managing partner at Economic Laws Practice, said the firm has presented to several boards recently likely scenarios and plan B options. "We have noticed the boardroom paying far more attention to these issues than previously," he said. Yogesh Singh, partner at Trilegal, said law firms are also mapping overlapping and conflicting regulatory environments to guide investment, partnership and structuring decisions, something that is relevant to sectors such as pharmaceuticals, fintech and defence, where local compliance and national interest are tightly interwoven. Economic Times WhatsApp channel )
Hindustan Times
08-05-2025
- Business
- Hindustan Times
Over 25,000 buildings in Mumbai Metropolitan Region eligible for redevelopment with ₹30,000 cr value: CREDAI-MCHI
Over 25,000 buildings across the Mumbai Metropolitan Region (MMR) are eligible for redevelopment, with the total estimated project value exceeding ₹30,000 crore, according to a statement issued by real estate developers' apex body CREDAI-MCHI on May 8. The organisation emphasized that unlocking Mumbai's full redevelopment potential requires directly addressing viability issues. "Approval costs in Mumbai stand at ₹55,200 per square metre, significantly higher than ₹1,800 in Pune and ₹5,500 in Delhi. This highlights the disproportionately high development charges in the city," CREDAI-MCHI stated. The apex body was reacting to Bombay High Court's ruling that clarified that GST is not applicable where homeowners appoint a developer to carry out redevelopment work. The legal representatives of CREDAI-MCHI also said that the court merely ruled that GST on development rights is not payable under the reverse charge mechanism—it did not abolish the tax altogether. Also Read: Motilal Nagar Redevelopment: 5 things to know about Adani Group's latest acquisition in the Mumbai real estate market The legal representatives stated that developers remain exposed to legal and financial risk until the GST Council or a larger bench of the High Court gives a conclusive verdict. The Bombay High Court last month clarified that GST is not applicable to developers where homeowners appoint a developer to carry out redevelopment work, provided there is no sale or Transfer of Development Rights (TDR) or Floor Space Index (FSI). The court quashed the tax demand, noting that the agreement was purely for construction and did not involve any transfer of TDR or FSI. Harsh Shah, Partner, Economic Laws Practice (ELP)added, "The confusion around the GST treatment of development rights has resulted in a wave of litigations across the country—with cases pending in Bombay, Delhi, Gujarat, and Karnataka High Courts. The judgment by the Nagpur bench of the Bombay High Court has been misinterpreted in some quarters as a blanket exemption from GST, which is inaccurate." 'A clear and consistent interpretation of GST law, in line with the nature of redevelopment transactions, is essential to restore confidence in the sector,' Shah said. Also Read: Shahrukh Khan's sea-facing building on Mumbai's Carter Road may go in for redevelopment According to Rohit Jain, Deputy Managing Partner, Economic Laws Practice (ELP), "Developers today face up to four layers of GST—5% on sale to customers, 18% on transfer of development rights, 5% on units handed back to existing residents, and non-creditable GST on construction materials." Jain said, "These cascading taxes severely impact margins and slow down redevelopment. It is important to clarify that despite recent high court rulings, GST is still applicable—either under forward or reverse charge mechanisms—and the confusion in interpretation must be addressed urgently. "CREDAI-MCHI, along with several developers, has made detailed representations to the GST Council, and we hope for swift intervention to reclassify development rights as immovable property, which should not attract GST under prevailing laws," Jain said. Also Read: Dharavi Redevelopment: 5 highlights of the master plan and the ongoing survey "When you add layers of GST and regulatory ambiguity to that, projects simply do not take off. Solving these issues is not just about helping developers—it is about providing safer homes to thousands living in dilapidated buildings, improving urban infrastructure, and unlocking housing supply," said Sunny Bijlani, Joint Secretary, CREDAI-MCHI. "Fixing GST interpretation and aligning taxation to ground realities can significantly accelerate redevelopment. These are low-hanging fruits with massive economic and social impact, and we urge decision-makers to act swiftly," Bijlani said. The apex body concluded in the statement that the Bombay High Court judgment is expected to stimulate redevelopment in Mumbai,a city where vertical growth remains the most practical solution amid limited land availability and ageing infrastructure.
