Kerala witnessed an unprecedented drop in monthly rooftop solar capacity additions, as low as 12 MW in July this year, compared to an average monthly installation of 35 MW, due to an unfavorable regulatory proposal by the Kerala State Electricity Regulatory Commission (KSERC) that impacted the segment. According to KSERC’s draft order, net metering for rooftop solar systems is limited to projects with a capacity of up to 3 kW. For projects between 3 kW and 5 kW, there is a mandate to include an energy storage system of up to 30% of the project size. The existing rules provide for net metering up to 1 MW.