Indian summers are notoriously hot. For the most part, it’s a problem. But it can also be an opportunity.
Here’s how: The sun is blazing, kids are home from school, and every household is running its fans and ACs at full tilt. Now, imagine if on your rooftop, solar panels sit quietly working to generate more electricity than your family needs at that time. At the same time, your neighbour’s home is running low on power as everyone cranks up their AC.
In the old days, your excess solar power would be sent back to the grid, earning you a modest credit. What if, instead of letting that extra solar energy go to waste (or selling it back to the grid for a pittance), you could sell it directly to your neighbour at a mutually agreed-upon price?
That, in a nutshell, is the promise of peer-to-peer (P2P) energy trading, a new way of thinking about ele ctricity that puts power (literally and figuratively) into the hands of everyday Indians.
What Is P2P Energy Trading?
TL;DR: Think of P2P energy trading as the digital-age cousin of your local sabzi mandi. Instead of vegetables, people buy and sell electricity.
P2P energy trading is a digital marketplace for electricity, where ordinary people, households, small businesses, even communities, can buy and sell energy directly to each other, just like you might buy vegetables from a local mandi.
Instead of being passive consumers, you become an “energy prosumer”: someone who both produces and consumes electricity.
Traditional electricity distribution models were often a one-way affair. Big power plants generated electricity from non-renewable sources, which flowed through the grid to your home. If you have rooftop solar, any extra power you generate is sent back to the grid, and you get compensated at a fixed rate (often lower than what you pay to buy power).
But with P2P trading, you can negotiate the price of your surplus electricity with other consumers nearby. Maybe your neighbour is willing to pay a bit more for clean, local solar power than the grid does. Suddenly, your rooftop becomes a source of income, not just savings. This creates a local energy market: dynamic, flexible, and fair.
How Does It Work?
If P2P energy trading is the digital-age sabzi mandi, then the tech behind it is the invisible infrastructure (the weighing scales, the receipts, the ledgers, and the market rules, etc.) all rolled into one, but supercharged for the 21st century.
At its core, P2P energy trading platforms in India are built on a foundation of smart meters, open digital protocols, and blockchain technology, all woven together to create a seamless, secure, and scalable marketplace.
Smart meters are the silent workhorses here. Installed in every participating home or business, these devices measure electricity generated and consumed in real time, sending this data to the platform every few minutes. This granularity means the system always knows exactly how much energy is available for trade and how much is being used, down to the last unit.
The data from these meters flows into the digital platform, where it’s matched with buy and sell offers, think of it as a live energy bazaar, where your surplus solar power is listed alongside your neighbour’s demand, and the platform’s algorithms handle the matchmaking.
But what really makes this system tick is the use of open protocols like the Beckn Protocol and the Unified Energy Interface (UEI). These standards ensure that different platforms, devices, and utilities can talk to each other, meaning no more closed silos or vendor lock-in.
Whether you’re using Kazam’s Buzz app or another service, the underlying tech ensures your smart meter, EV charger, or battery can plug into the marketplace with minimal fuss. Every transaction is recorded on a blockchain. This digital ledger is tamper-proof, time-stamped, and auditable by regulators, giving everyone confidence that the numbers add up and disputes can be resolved quickly and fairly.
Let’s break down different elements of this process in simple words: (No technical jargon, I promise!)
- Smart Meters: Every participant, whether a seller (prosumer) or buyer (consumer), has a smart meter that tracks electricity generation and consumption in real time.
- Digital Platform: A digital platform (think of it as an “energy bazaar” app) connects buyers and sellers. Here, prosumers list the amount of energy they have available and its corresponding price.
- Discovery & Matching: Consumers search for available energy offers, compare prices, and place orders, just like booking a cab or ordering groceries online.
- Automated Contracts: Once a deal is struck, the platform creates a digital contract for the agreed amount of energy at the agreed price.
- Grid as Delivery Network: The actual electricity flows through the existing grid, but the platform keeps track of who supplied how much to whom, and when.
- Settlement & Payment: At the end of every billing period, the platform calculates how much each participant owes or is owed, factoring in grid usage charges and small platform fees. Payments are settled digitally, and everyone gets a transparent bill.
By combining real-time data, open standards, and secure digital records, India’s P2P energy trading platforms are turning every rooftop and battery into a node in a smarter, more democratic energy grid.
Why Is P2P Energy Trading Important?
Globally, energy demand is soaring with electrification, rapid economic growth, and a growing number of devices drawing electricity in every household, e.g., more ACs, EVs, and generally, more creature comforts, from washing machines to dishwashers.
India is no stranger to this trend. Rooftop solar is booming, batteries are getting cheaper, and millions of new electric vehicles are hitting the roads. But our grid is under strain: blackouts, congestion, and wasted renewable energy are all too common.
At the same time, India has made aggressive commitments to clean up its energy supply and combat climate change. But, delays in connecting new renewable projects and updating grid infrastructure are emerging as critical barriers. As renewable projects are often smaller than traditional fossil fuel-powered mega power stations, transmission of small amounts of electricity over long distances becomes a challenge.
As per a now-famous meme, modern problems require modern solutions. P2P energy trading is that solution for the energy sector.
Here’s why it matters in the Indian context:
- Empowering the Common Man: For the first time, ordinary people can earn money from their rooftop solar panels, batteries, or even their electric vehicles, turning energy from an expense into an income stream.
- Lower Bills, Cleaner Power: Local trading means more renewable energy is used where it’s generated, reducing transmission losses and dependence on polluting power plants. Buyers can access cheaper, greener power, while sellers get better returns.
- Grid Resilience: By balancing supply and demand locally, P2P trading helps reduce grid congestion and blackouts, especially important as more Indians install ACs, EVs, and smart appliances.
- Climate Action: Every unit of locally traded renewable energy is a unit that’s not generated from coal or gas. P2P trading accelerates the clean energy transition, helping India meet its climate goals.
- Innovation and Inclusion: With open digital platforms, even small players (say, farmers, shopkeepers, housing societies) can participate. This democratises the energy market, and reduces the load on traditional utility companies that are under immense financial and operational strain, given the size of our nation.
A Win-Win Solution to Indians’ Energy Woes
When you peel back the layers of P2P energy trading, it’s not just households and solar panel owners who stand to gain. This model is a game-changer for India’s electricity distribution companies (Discoms), original equipment manufacturers (OEMs), and the rapidly growing community of electric vehicle (EV) users.
- For Discoms, P2P trading is like a pressure valve for the grid. Instead of being solely responsible for balancing supply and demand across sprawling cities and villages, Discoms can leverage local energy exchanges to smooth out peaks and troughs. This means fewer blackouts, reduced grid congestion, and less need for expensive infrastructure upgrades. Plus, by enabling more renewable energy to flow through their networks, Discoms can meet regulatory targets and improve their financial health, collecting grid usage fees and platform charges without the headache of managing every single transaction. In short, P2P trading helps Discoms transform from overburdened utilities into agile facilitators of a smarter, cleaner grid.
- For OEMs like think solar panel makers, battery manufacturers, and smart meter providers, P2P energy trading unlocks a thriving new market. As more Indians see value in generating and trading their own power, demand for high-quality, interoperable equipment will soar. OEMs can innovate, bundle, and offer smart solutions that plug seamlessly into digital energy marketplaces, driving both sales and brand loyalty. It’s a virtuous cycle of investment, innovation, and adoption that can power India’s clean energy ambitions.
- And for EV users, P2P trading is a breath of fresh air. Imagine topping up your EV with clean, local solar power from your neighbour’s rooftop, often at a better price than the grid. Or, if you have a home charger and solar panels, selling surplus energy back to the community when your car is parked. This flexibility means lower charging costs, greener commutes, and a more resilient charging network, especially important as India’s EV revolution accelerates.
Pilots, Progress, and Policy: Where P2P Energy Trading Stands in India (October 2026)
India has moved from concept papers to live trades. Here is the current state of peer to peer energy trading regulations and pilots across India:
- Uttar Pradesh: UPERC approved the interstate P2P renewable energy trading pilot in February 2026 under the India Energy Stack (IES) framework. Regular trading commenced in March 2026. By July 2026, 1,164 trades had been executed and settled. In September 2026, UPERC extended the pilot to March 31, 2027, with retrospective effect from August 2026.
Delhi: DERC approved a six-month pilot for both intra-state and interstate P2P solar energy trading in February 2026. Key terms:
- Transaction fee: Rs 0.42 per kWh, split equally between buyer and seller
- Wheeling charges waived for P2P transactions within TPDDL's licensed area, and for intrastate/interstate trades up to the Delhi NCT boundary
- No cap on solar energy transactions (the earlier 20% Capacity Utilisation Factor limit was removed)
- Penalties for under-injection and under-drawal replaced for the pilot duration
- Trading price discovered between consumers and prosumers (not fixed by the regulator)
The pilot was launched in response to petitions from BSES Rajdhani Power Limited (BRPL) and Tata Power Delhi Distribution Limited (TPDDL).
- Karnataka: Issued provisional P2P trading regulations. CSS, wheeling charges and additional surcharges were waived until March 2026. Updated framework expected.
These guidelines specify how energy charges are set, how platform and grid fees are collected, and how disputes are resolved, creating a robust framework for scaling up P2P trading nationwide.
Introducing Kazam’s Buzz Platform: The Energy Bazaar of the Future
One of the most exciting innovations in this space is Kazam’s Buzz platform .
Kazam is already a household name in India’s EV charging and energy management sector, with over 50,000 chargers deployed across 5,000+ pincodes. Building on this expertise, Buzz by Kazam is designed to be an open, interoperable marketplace for P2P energy trading. Here’s how Buzz helps you make the best of your solar energy experience:
- User-Friendly: Whether you’re a tech-savvy urbanite or a first-time solar user in a small town, Buzz offers a simple, intuitive interface for listing, discovering, and trading energy.
- Interoperable: Buzz uses open standards like the Beckn Protocol and Unified Energy Interface (UEI), ensuring it can connect with other platforms, utilities, and devices, no lock-in, no silos.
- Smart Integration: The platform seamlessly integrates with smart meters, EV chargers, batteries, and rooftop solar systems, giving you real-time visibility and control.
- Secure & Transparent: Every transaction is recorded on a blockchain, ensuring trust, transparency, and regulatory compliance.
- Scalable: Whether you’re a single household or a large housing society, Buzz can handle everything from micro-trades (a few units) to bulk transactions.
India Energy Stack: How P2P energy trading fits into the picture?
Just as this P2P revolution is gaining momentum, something remarkable happened in June 2025. The Indian government announced the India Energy Stack (IES), quite literally, the UPI moment for India's power sector.
If you think about it, this is exactly what P2P energy trading needed to truly take off: a unified, nationwide digital backbone that makes energy transactions as seamless as sending money through UPI.
The India Energy Stack (IES) is a Digital Public Infrastructure (DPI) designed to break down the old silos of the power sector. It creates a secure, interoperable digital layer that links producers, grid operators, discoms, consumers, and regulators, making energy flows as seamless as sending a text or making a digital payment. The government has already begun a 12-month proof of concept in cities like Mumbai, Delhi, and Gujarat, and even the International Energy Agency is backing this initiative.
The initiative, spearheaded by none other than Nandan Nilekani (the brain behind Aadhaar and UPI), promises to do for energy what those platforms did for identity and payments. Every energy consumer, prosumer, and even every kilowatt-hour will get a unique digital identity, making tracking, trading, and settling energy transactions as simple as scanning a QR code. The IES will provide real-time, consent-based data sharing and open APIs that let different platforms (like Kazam's Buzz) talk to each other seamlessly, breaking down the silos that have long plagued India's power sector.
So, for the first time, local energy markets, like the P2P trading you read about above, are no longer isolated pilots, but part of a national movement. The IES empowers every Indian household to participate in energy trading with the same ease and trust as digital payments. It ensures that your solar surplus, your battery storage, or your EV’s flexible charging can be discovered, contracted, and settled instantly, with full transparency and regulatory compliance.
India Energy Stack (IES): Launched in June 2025, IES is the unified digital infrastructure for P2P energy trading, similar to what UPI did for payments. The full IES project was targeted for completion by July 2026. In February 2026, REC Limited (the nodal agency under the Ministry of Power) demonstrated the first live P2P decentralized energy transaction under IES at the India AI Impact Summit in New Delhi.
What this means for you: If you have rooftop solar in Delhi or UP, you can already participate in P2P energy trading through approved platforms. Other states are expected to follow as the IES framework matures.
The Road Ahead
P2P energy trading is not really a technological innovation; it’s an ingenious solution that makes use of our existing systems to create entirely new local energy markets, albeit one that’s cleaner and more sustainable.
With supportive policies, open digital infrastructure, and platforms like Kazam’s Buzz, India is well-placed to lead the world in this new era.
So, the next time you see sunlight pouring onto your rooftop, remember: you’re not just a consumer. You’re a potential energy entrepreneur, part of a growing network that’s lighting up India, one peer-to-peer trade at a time.
FAQ’s
What is peer to peer energy trading?
Peer to peer (P2P) energy trading is a system where individuals, households or businesses buy and sell electricity directly with each other through a digital platform. If you have rooftop solar panels and generate more power than you use, you can sell solar energy to a neighbour or another consumer at a mutually agreed price, instead of only feeding it back to the grid at a fixed rate.
How does P2P energy trading work in India?
A P2P energy trading platform connects prosumers (people who produce and consume electricity) with buyers. Smart meters track how much energy you generate and consume in real time. The platform matches buy and sell offers, creates digital contracts, and settles payments at the end of each billing cycle. The electricity itself flows through the existing grid, but the platform records who supplied how much to whom.
Can I sell my solar power to my neighbours?
Yes, if you are in a state with approved P2P trading regulations. As of October 2026, Delhi and Uttar Pradesh have active P2P trading pilots. Karnataka has also issued provisional regulations. You need rooftop solar, a smart meter, and registration on an approved P2P energy trading platform.
What is the transaction fee for P2P energy trading?
In Delhi, DERC has set a transaction fee of Rs 0.42 per kWh, split equally between buyer and seller. Wheeling charges are waived for trades within TPDDL's area and for intrastate/interstate trades up to Delhi NCT boundaries. Fees may vary by state and platform.
Is P2P energy trading the same as net metering?
No. Under net metering, your surplus solar power goes back to the grid and you receive a credit at a fixed rate set by the discom. With P2P energy trading, you sell directly to another consumer at a price you both agree on. P2P typically offers better returns to sellers and lower costs to buyers compared to net metering, because the price is market-driven.
What is a P2P energy trading app?
A P2P energy trading app is a mobile or web application that acts as a marketplace for electricity. It allows prosumers to list their available solar energy, set prices, and discover buyers. Buyers can compare offers and place orders. The app handles matching, contracts, and billing. Kazam's Buzz platform is one such P2P energy trading platform operating in India.
How much can I earn by selling solar energy through P2P trading?
Your earnings depend on how much surplus solar power you generate, the agreed price per unit, and the transaction and grid fees applicable in your state. Since P2P trading allows market-driven pricing (rather than the fixed buyback rate under net metering), prosumers generally earn more per unit. As an example, if you sell 200 units per month at Rs 5/kWh with a Rs 0.42 transaction fee, your net earning would be around Rs 958 per month.
What is the India Energy Stack and how does it relate to P2P energy trading?
The India Energy Stack (IES) is a Digital Public Infrastructure initiative announced in June 2025, designed to create a unified digital backbone for India's power sector, similar to UPI for payments. IES enables interoperability between different P2P platforms, smart meters, discoms, and regulators. The P2P trading pilots in Delhi and UP are operating under the IES framework.
Can EV owners participate in P2P energy trading?
Yes. If you have rooftop solar and an EV charger at home, you can charge your EV with your own solar power and sell the surplus. In the future, vehicle-to-grid (V2G) technology may also allow EV owners to sell stored energy from their car battery back to the grid or to other consumers.
Is P2P energy trading available across India?
Not yet. As of October 2026, active pilots are running in Delhi and Uttar Pradesh. Karnataka has provisional regulations in place. More states are expected to adopt P2P trading frameworks as the India Energy Stack rollout continues. Check with your state electricity regulatory commission for the latest status.
