Rajasthan increases net metering cap to 1 MW
ECONOMY & POLICY

Rajasthan increases net metering cap to 1 MW

The Rajasthan Electricity Regulatory Commission (RERC) has raised the cap on net metering for rooftop solar installations from 500 kW to 1 MW in a move aimed at promoting the adoption of such systems. The decision, outlined in a suo motu order, is aligned with the state?s Grid Interactive Distributed Renewable Energy Generating Systems (DREGS) Regulations, 2021.

These regulations cover various aspects, including net metering and net billing arrangements, for renewable energy systems connected to the grid. The eligibility for net metering is determined by the Electricity (Rights of Consumers) Rules, 2020. The Ministry of Power, through the Electricity (Rights of Consumers) Amendment Rules, 2021, directed state electricity regulatory commissions to establish the capacity for net-metering arrangements.

If the regulations do not specify the type of arrangement, the RERC has the authority to permit net metering for loads up to 500 kW or the sanctioned load, whichever is lower, and net-billing or net feed-in for other loads. The RERC DREGS Regulations 2021 also empower the Commission to issue directions or orders for the implementation of the Electricity (Rights of Consumers) Amendment Rules 2020.

Based on the regulations and rules mentioned, the Commission had previously decided that net metering would apply to loads up to 500 kW or the sanctioned load, whichever is lower, for all consumer categories. Additionally, as per regulation 7 of the RERC DREGS Regulations 2021, the Commission has the authority to allow net metering for renewable energy generating systems up to 1 MW, ensuring the maximum capacity does not exceed 100% of the consumer?s sanctioned load or contract demand.

The recently issued Renewable Energy Policy 2023 in Rajasthan underscores the promotion of rooftop solar projects through mechanisms like net metering and gross metering. Despite the state having the highest potential for solar capacity in the country, estimated at 142 GW, the current installed rooftop solar capacity is only 1 GW, constituting less than 2% of the energy mix, particularly in distribution companies (DISCOMs).

The Commission acknowledged the power shortage in the state, leading DISCOMs to purchase expensive power from exchanges. While there have been proposals from DISCOMs to impose restrictions and charges on stored solar energy units during peak hours, the Commission has deferred such measures due to the current low penetration of rooftop solar. It may, however, consider introducing these restrictions at a later stage.

The Ministry of New and Renewable Energy has recently assigned Central Public Sector Undertakings state-wise responsibilities to expedite the implementation of rooftop solar programs nationwide. Stay updated on regulatory developments in the renewable industry by subscribing to Mercom?s real-time Regulatory Updates.

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The Rajasthan Electricity Regulatory Commission (RERC) has raised the cap on net metering for rooftop solar installations from 500 kW to 1 MW in a move aimed at promoting the adoption of such systems. The decision, outlined in a suo motu order, is aligned with the state?s Grid Interactive Distributed Renewable Energy Generating Systems (DREGS) Regulations, 2021. These regulations cover various aspects, including net metering and net billing arrangements, for renewable energy systems connected to the grid. The eligibility for net metering is determined by the Electricity (Rights of Consumers) Rules, 2020. The Ministry of Power, through the Electricity (Rights of Consumers) Amendment Rules, 2021, directed state electricity regulatory commissions to establish the capacity for net-metering arrangements. If the regulations do not specify the type of arrangement, the RERC has the authority to permit net metering for loads up to 500 kW or the sanctioned load, whichever is lower, and net-billing or net feed-in for other loads. The RERC DREGS Regulations 2021 also empower the Commission to issue directions or orders for the implementation of the Electricity (Rights of Consumers) Amendment Rules 2020. Based on the regulations and rules mentioned, the Commission had previously decided that net metering would apply to loads up to 500 kW or the sanctioned load, whichever is lower, for all consumer categories. Additionally, as per regulation 7 of the RERC DREGS Regulations 2021, the Commission has the authority to allow net metering for renewable energy generating systems up to 1 MW, ensuring the maximum capacity does not exceed 100% of the consumer?s sanctioned load or contract demand. The recently issued Renewable Energy Policy 2023 in Rajasthan underscores the promotion of rooftop solar projects through mechanisms like net metering and gross metering. Despite the state having the highest potential for solar capacity in the country, estimated at 142 GW, the current installed rooftop solar capacity is only 1 GW, constituting less than 2% of the energy mix, particularly in distribution companies (DISCOMs). The Commission acknowledged the power shortage in the state, leading DISCOMs to purchase expensive power from exchanges. While there have been proposals from DISCOMs to impose restrictions and charges on stored solar energy units during peak hours, the Commission has deferred such measures due to the current low penetration of rooftop solar. It may, however, consider introducing these restrictions at a later stage. The Ministry of New and Renewable Energy has recently assigned Central Public Sector Undertakings state-wise responsibilities to expedite the implementation of rooftop solar programs nationwide. Stay updated on regulatory developments in the renewable industry by subscribing to Mercom?s real-time Regulatory Updates.

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