Rooftop solar: Govt may allow installations up to 500 kW

12 Apr 2021 CW Team

The Ministry of Power (MoP) has proposed to allow rooftop solar installations up to 500 kW capacity to be billed under net metering.

If the proposal is approved, rooftop solar consumers will receive higher tariffs from power distribution companies (discoms) for the surplus power sold to the discoms.

The MoP released a draft amendment to the Rights of Consumer rules, which it had laid down in December 2020, where the relaxation of the rooftop solar installation capacity has been proposed.

The earlier version of the consumer rights rules, which allowed net metering for only up to 10 kW rooftop capacities, impedes the pace of capacity addition of rooftop solar in the country disincentivising commercial and industrial users from installing such power generation capacities in their premises.

Consumers can earn around Rs 7 per unit by selling the surplus power generated from their rooftop solar plants through net metering. But under the December 2020 mandate, they were to be billed through gross metering and compensated at around Rs 3.5–Rs 4 per unit.

The National Solar Energy Federation of India (NSEFI) had requested the MoP to amend the provision on gross metering for larger rooftop consumers, pointing out that investment to the tune of Rs 1,500 to Rs 2,000 crore is either under contract or under commissioning phase for such rooftop capacities and the new mandate will create uncertainty and impact the ongoing projects. Out of the total solar capacity of 36.9 GW, only 3.4 GW currently comes from rooftop solar.

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Also read: World Bank to offer $648 mn to India for rooftop solar

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