Quick Facts
What sanctioned load is
Sanctioned load is the maximum electrical load (typically expressed in kW or kVA) that the Distribution Company (DISCOM) has approved for a consumer’s electricity service connection. The DISCOM provisions the service line, distribution transformer share, and protection devices to handle this load safely.
The number appears on the consumer’s electricity bill and in the original service agreement. For a typical Indian home, sanctioned load is between 3 kW and 10 kW. Small businesses range from 5 kW to 50 kW. Larger industrial connections are measured in kVA (contract demand) rather than kW.
The sanctioned load serves three purposes for the DISCOM. It defines the protection device rating (so a sustained excess load trips the connection). It determines the fixed monthly demand charge. And critically for solar, it caps the rooftop solar capacity that the DISCOM will allow under net metering.
Sanctioned load and rooftop solar capacity
Most Indian state SERCs require that rooftop solar capacity not exceed the consumer’s sanctioned load. The reasoning is technical:
The service line is rated for the sanctioned current.
Solar export flows through the same line as grid import, in the opposite direction.
If solar export exceeded the rated current, the line could overheat or trip.
The local distribution transformer is also sized for the aggregated sanctioned loads of all connected consumers. Excess solar export would stress the transformer.
A consumer with 5 kW sanctioned load can typically install 5 kWp DC solar without issues. Going to 7 kWp would require first enhancing the sanctioned load to 7 kW or above.
Some states allow slight oversizing (110% to 125% of sanctioned load) for solar capacity, recognising that real-world solar output rarely hits the full DC rating. Other states are stricter. Check the latest SERC order before planning.
How to enhance sanctioned load
If a consumer wants more solar than the current sanctioned load allows, the load can be enhanced through a DISCOM application.
The process generally involves:
Application to the DISCOM for load enhancement, specifying the desired new load.
DISCOM feasibility check on the service line, transformer, and feeder capacity.
Possible service line upgrade if the existing cable cannot handle the new load.
Possible meter replacement to a higher rating.
One-time enhancement charge, typically Rs 200 to Rs 500 per kW added.
Updated electricity agreement reflecting the new sanctioned load.
Subsequent monthly bills with higher fixed demand charge.
Timelines vary from 2 weeks to 3 months depending on the DISCOM’s processing capacity and whether physical upgrades are needed.
Example: sizing solar against sanctioned load
A homeowner in Bengaluru has a 5 kW sanctioned load and wants to install 7 kWp of solar (with PM Surya Ghar subsidy).
Option 1: Enhance load to 7 kW.
Apply for load enhancement.
Pay enhancement charges of approximately Rs 1,000.
DISCOM upgrades the connection (if needed).
Install 7 kWp solar, subsidy of Rs 78,000 applies.
Higher fixed demand charge (additional Rs 100 to Rs 200 per month) for the 2 kW enhancement.
Option 2: Stay within 5 kW.
Install 5 kWp solar with subsidy.
No load enhancement needed.
Cannot get the full benefit of the larger system.
Most customers choose Option 1 because the load enhancement charge and small increment in monthly fixed cost are recovered quickly through the additional solar generation.
Sanctioned load versus contract demand
For LT (low-tension) consumers, the term sanctioned load is used. The load is the maximum demand the consumer can draw.
For HT (high-tension) consumers, the term contract demand is used. The contracted maximum demand is measured in kVA.
Both serve similar functions in capping maximum draw and triggering protection. The technical and commercial implementations differ slightly.
For solar:
LT residential and small commercial: Solar capacity caps at sanctioned load.
HT and large LT consumers: Solar capacity may be capped at contract demand or at a fraction of contract demand depending on state rules.
Always verify the specific state’s rules before sizing solar for HT consumers.
DISCOM monitoring of sanctioned load
DISCOMs monitor consumer load through:
Maximum demand recorded by the energy meter each billing cycle.
Periodic site inspections at industrial and large commercial sites.
Protection device trip incidents indicating excess draw.
If a consumer’s recorded maximum demand exceeds the sanctioned load:
Some DISCOMs apply a penalty multiplier on fixed demand charges for that month.
Some require formal load enhancement.
Sustained violations can trigger disconnection.
For solar consumers, the typical concern is that net metering allowed the inverter to export above the sanctioned current at some moments. This is technically possible but usually well-controlled by the inverter’s grid synchronisation and the relatively small fraction of time at peak generation.
Common mistakes with sanctioned load
Designing solar without checking the current sanctioned load. Many DSCOM rejections of solar applications happen because of capacity mismatch.
Treating sanctioned load as an exact upper limit when some states allow modest oversizing.
Forgetting to apply for enhancement before installation. The DISCOM application for solar requires that sanctioned load already match the planned capacity.
Confusing sanctioned load with connected load (the total wattage of all connected appliances). The two are different.
Ignoring the fixed charge implications of load enhancement.
Best practices
Check the latest electricity bill for current sanctioned load before sizing solar.
If solar capacity needs to exceed sanctioned load, apply for enhancement before submitting the solar net-metering application.
For residential customers planning 5 to 10 kWp solar, an initial load enhancement to 7 to 10 kW often makes sense to support the system.
Document the load enhancement and updated agreement before installation. Saves time on net-metering application processing.
For commercial customers, evaluate the trade-off between higher sanctioned load (more solar, higher fixed charge) versus lower load (less solar, lower fixed charge).
For new construction with planned solar, declare a larger initial sanctioned load to accommodate future expansion.
Standards and references
Sanctioned load is governed by state DISCOM tariff orders, the Electricity Act 2003, and applicable safety standards including IS 732 (wiring rules) and CEA Connectivity Regulations 2019.
Related glossary terms
Key takeaways
Sanctioned load is the maximum electrical load approved by the DISCOM for a consumer’s electricity connection, typically expressed in kW for LT consumers and kVA for HT consumers. For rooftop solar net metering, most Indian states cap solar capacity at the sanctioned load. Enhancing the sanctioned load through a DISCOM application is straightforward and typically required before installing solar above the current load. The associated fixed demand charge increases proportionally, but the solar benefits usually outweigh this cost for properly sized systems.