If the state electricity regulator follows the ministry of power regulations on ‘Grid Interactive Rooftop Solar PV system’, it will help the financially stretched out discoms
JAIPUR: The new regulations for rooftop solar projects proposed in the draft notification released on Wednesday by Rajasthan Electricity Regulatory Commission are likely to derail the growth of the segment as much of the tariff incentives enjoyed by such projects will be unavailable.
But if the state electricity regulator follows the Union ministry of power (MoP) regulations on ‘Grid Interactive Rooftop Solar PV system’, it will certainly help the financially stretched out discoms as migration of high value consumers to solar will be curbed.
The MoP’s decision notification restricts net metering loads up to 10KW and thereby depriving benefits to projects above 10KW (gross metering). While the state regulator has not proposed any load caps, like the MoP it has created two segments – net metering and gross metering, which was not there earlier for projects up to 1 MW.
RERC has in the draft notification said for the gross metering projects, the discoms will enter into connection agreement at an average tariff of solar projects of 5MW and more, discovered through competitive bidding in previous financial year and an additional incentive of 25%.
“We have not given caps for projects that would come under net metering. We will seek feedback from the industry and there are guidelines already announced by the MoP. We will consider all aspects before arriving at caps for net metering and gross metering,” said Shreemat Pandey, chairman, RERC.
But industry experts said that if one goes by the cap of 10 KW laid down by MoP as eligibility criteria, 95% of the rooftop projects will be out of net metering.
Under net metering, the consumer uses the cheaper rooftop solar power instead of the costly discom power. Under the gross billing or metering, as per the draft proposals, the project owner will have to pay normal electricity rate to discoms even though it uses cheap power from its rooftop plant. The discoms will pay the gross meter project owner for the solar rooftop energy generation at rates discovered through auction along with 25% incentive which would be far lower than the discom rates of around Rs 8 per unit.
The industry estimates projects under gross metering not getting more than Rs 4 per unit of solar power which is the cost of production.
Sunil Bansal, general secretary Rajasthan Solar Association said, “At these rates for gross metering, nobody will come forward to set up rooftop plants. This segment, covering educational institutes, hospitals, offices, and factories, accounts for 95% of the rooftop industry. There will be very few new projects and will sound a death knell to the industry.”
Bansal said after the focus of the Central government on the rooftop segment, a whole new MSME industry flourished to cater to the requirements of the rooftop plants. ‘Now, all these MSME units are shocked to see the MoP bringing in rules that will not only create roadblocks for the solar industry but also put at risk the existence of MSME units in the solar sector,” added Bansal.
Source: energy.economictimes.indiatimes
