The Indian ministry of power (mop) has finally issued the much-awaited amendment regarding the net metering of rooftop solar systems that have a capacity of 500kw or lower load which is approved.
Net Metering is a type of system where it gives the solar energy owners credits for the power that they add to the grid which is generated through their solar rooftops. When the solar panels generate excess power, that power is then sent to the grid. This power can be ‘taken back’ when the solar panels are not functioning like during the night when sunlight is not present. When a rooftop system is net-metered, the bi-directional electricity meter will run backward. Customers are billed only for the energy they consume.
As per the new Electricity Amendment Rules, 2021, any arrangements made for net-metering, gross-metering, net-billing, or net feed-in would follow the regulations made by the State Commission from time to time.
The current amendment made consider net billing process or gross metering for rooftop installed solar systems for capacities of 500 KW or lower. For this net metering facility, a single bi-directional energy meter is used at the supply point in order to calculate the intake and output of electricity by the rooftop facility and grid. It is calculated in different tariffs.
The amendment also states that in either case of net-metering or gross metering, DISCOM can install a solar energy meter in order to measure the gross solar energy generated by the rooftop solar system for renewable energy purchase obligation (RPO) credit, if any.
The amendment also permits gross metering for consumers who are willing to sell all the solar energy generated by their rooftop systems to DISCOM instead of using net metering. The Commission will decide the tariff for gross-metering as per tariff regulation under the set rules.
Another point to be noted is that the state regulatory commissions have the capability to choose when to introduce time-of-the-day tariffs where consumers will be incentivized to install energy storage for storing the solar energy transferring it to the grid during peak hours. This could help the grid to manage the demand and respond better to the people’s needs.
“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,” said Raj Prabhu, CEO of Mercom Capital Group.
Article source: mercomindia.com
Image credit: investopedia.com
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