Finally, the Power Ministry has given a green signal to the much-awaited amendment regarding net-metering for rooftop solar up to 500 KW. This has given relief to rooftop solar developers and clients.
According to the previous regulations, the Government had allowed net metering up to 10 kW only. Once this limit gets crossed, the gross metering was being applied to it. Because of this, small solar developers and consumers were under pressure & the rooftop solar industry was facing a bad situation. After the previous regulation of gross metering over 10kW, many rooftop solar analysis reports showed that it would be difficult for India to meet its solar target.
According to the new amendment, prosumers are allowed to use net metering for loads up to 500 kW or the sanctioned load, whichever is lower. All arrangements for net-metering, gross-metering, net-billing, or net feed-in are made under the regulations of the State Commission from time to time.
The Amendment
Net Billing or Gross Metering for the rooftop solar solution will be applicable over 500 KW load.
The Prosumers are allowed to use net metering for loads up to 500 kW or the sanctioned load, whichever is lower.
In both cases, either net metering or gross metering, a solar energy meter will be installed by the state Discom, which will count the total generated solar energy and find out the RPO credit value.
For those prosumers who do not use net metering and sell or would like to sell all solar energy generated to state Discoms, the amendment allows gross metering to them. The Commission would decide the generic tariff for gross-metering as per tariff regulation.
An important point has also been added in the order that the State Regulatory Commission may introduce time-of-the-day tariffs for a specified time of day (peak horse). Which will encourage consumers to store solar energy or feed it to the grid during peak hours, which help the grid to manage the electricity demand. For this, the consumer will be paid under a time-of-the-day tariff.
CEO of Mercom Capital Group, Mr. Raj Prabhu stated, “This order approving net metering for solar systems up to 500 kW removes the uncertainty that was hanging over the market and allows the rooftop market to get moving again.”
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