Amid flak, change in rules for solar power
The Maharashtra Electricity Regulatory Commission (MERC) has withdrawn earlier proposals on solar guidelines system that allegedly discriminated against citizens who generate their own electricity from renewable sources.
A net metering system allows surplus power generated through renewable sources to be exported back to the commercial grid as well as the surplus power imported through the grid. At the end of a billing cycle, the consumer is charged only for net usage (the power consumption through the grid after solar power is exhausted)’.
The draft proposal by the MERC, which had been put up for public consultation till November 18, invited flak from citizens as it intended to convert the Maharashtra Electricity Regulatory Commission (Net Metering for Rooftop Solar Systems) Regulations, 2015 to net billing by restricting the concessions to citizens who generate power from renewable sources.
However, after studying the suggestions and making relevant changes, MERC published the final policy as a gazette notification on December 30.
The new rule under MERC (Grid Interactive Rooftop Renewable Energy Generating Systems) Regulations, 2019, restores earlier concessions, but customers will have to pay an additional charge called ‘grid support charges’. The additional charge will be applicable to customers with rooftop solar plant of capacity more than 10 kilowatt (kW). The minimum size of renewable energy generating system that can be set up under the new rules is 1kW.
Grid support charges will be the difference between the cost borne by the Maharashtra State Electricity Distribution Company Limited (MESDCL) in setting up power lines and the benefits of a rooftop solar system. This amount will be paid to MESDCL. However, the additional charges to consumers (residential, commercial or industrial) are yet to be decided by MSEDCL.
“The commission has tried to balance all stakeholders’ interest while developing the policy,” said Abhijit Deshpande, secretary, MERC.
Explaining the reason why grid support charges were implemented, another MERC official said, “When units from a rooftop solar plant are exported, it utilises infrastructure of MSEDCL. Whenever this grid infrastructure is used, a certain wheeling charge is applicable to the user. Also, MSEDCL needs to balance the grid, and bank the units not utilised by the consumer. The above costs arise only when solar units are exported. Hence, costs associated with more than 10 kW power is to be borne by the customer.”
The Maharashtra Solar Manufacturers Association (MASMA) said they were happy with the new rules though they oppose the cap placed under grid support charges. Pradeep Kulkarni, president, MASMA, said, “Now MSEDCL has to write to MERC informing them about the rates, and this would be the deciding factor for large solar installations. However, losses predicted due to the draft policy have diminished, and business has already started improving since this latest policy was published.”
MSEDCL officials said they needed to go through all details of the new proposal and refused to comment at the moment.
Solar distributors welcomed the new rules. Animesh Manek, founder, Avishakti Rooftop Solar Ltd, said, “MERC has done a commendable job in understanding the objections raised by stakeholders and come up with a perfect compromise. Thus, the net metering rules stay unchanged and the additional burden borne by MSEDCL for the infrastructure is compensated by the grid support charge. This will ensure that the solar industry and MSEDCL will thrive in collaboration with each other.”
“The entire rooftop solar business had come to a standstill due to the proposed change in solar guidelines. This retraction is also an indicator to the government that any misguided policy or guideline has the capacity to grind the industry to a halt,” said Maxson Lewis, managing director, Magenta Power.