To facilitate the installation of solar plants under Virtual Net Metering arrangement the Indian Ministry of New and Renewable Energy has prepared a concept note covering some of the possible business models including CAPEX, RESCO and Utility operated model.
According to this note, “Virtual Net Metering” means an arrangement whereby entire electricity generated from a solar project installed at consumer premise or any other location is injected through solar electricity meter and the electricity exported is adjusted in either one or more than one electricity service connection(s) of participating consumer(s) located within the same distribution licensee’s area of supply. This gives the opportunity for the system to serve more than one consumer. Further, instead of small solar plants on individual roofs, a common solar plant of higher capacity will have advantage of economies of scale, higher efficiencies and lower maintenance cost. Thus, solar power can be generated at lower per unit cost through virtual net metering.
Access the note here