E-Paper
People selling solar power to electricity dept to get less compensation: JERC
The charges are applicable for gross metering power plants and not for net metering power plants
Fixing the tariff after a gap of over a year, the Joint Electricity Regulatory Commission (JERC) in its latest order has decreased it for gross metering solar power projects for Chandigarh by around ₹1.42. The charges are applicable for gross metering power plants and not for net metering power plants.
The order will once again pave the way for the installation of gross metering solar power plants. The UT administration had withheld the permission of installation of the gross metering plants in the absence of a tariff for the segment.
As per the JERC order, the tariff has been decreased from ₹6.30 per kilowatt hour (kWh) to ₹4.88 per KWh for the projects availing accelerated depreciation (AD) benefit.
The order implies that the residents directly feeding solar power to the UT electricity department grid without consuming it and selling it to the department will get lesser compensation for the electricity supplied by the former.
Tariffs will be applicable for the solar power projects (gross metering) commissioned between the date of issuance of this order (September 2, 2019) till March, 31, 2020. For solar plants (gross metering), the JERC has considered a useful life of 25 years.
The fixation of rate was pending for the last one year. The last order made was applicable till 2017-2018. In July this year, the JERC proposed draft rates and after consultation with the stakeholders, the rate was fixed on September 2.Chandigarh Renewable Energy and Science and Technology Promotion Society (CREST) director Debendra Dalai said, “The reason behind the reduction in the tariff from ₹6.30 per kWh to ₹4.88 per kWh for gross metering is the consistent decline in the cost of generation of solar power. Even the benchmark set by the ministry of new and renewable energy has been reduced from ₹60 per KW to ₹50 per KW.”
Difference between gross and net metering
Under the gross metering, the producer (a household or a commercial establishment) of the solar power generated electricity does not consume electricity himself but feeds it directly to the grid of electricity department. These types of systems are connected to the grid by a separate connection and have a separate meter, known as a Gross meter. The electricity department pays the producer per unit of tariff for every unit exported to the grid. The rate is usually higher from the tariff charged for consumption.
Under net metering, electricity generated by the rooftop solar power plant is first utilised by the consumer to meet his internal requirements. Excess electricity, if any, is exported to the grid. Subsequently, when the consumer imports power from the grid, the exports are adjusted against the imports, lowering the electricity bill.
