Rooftop solar energy: Revised net metering cap in the new draft electricity rules means good news

The Union Ministry of Power may allow net metering to the prosumer for up to 500 kilowatts (kW) or up to the sanctioned load, according to the amendments proposed to the Electricity (Rights of Consumers) Amendment Rules, 2021 last month. This is a significant increase from the December 2020 draft that allowed for net metering only up to 10 kW. 

A prosumer is someone who produces solar energy and also consumes electricity generated by power companies through the grid.

The new draft contains regulations governing gross metering. This refers to a mechanism where the total solar energy generated from a grid-interactive rooftop Solar system and the energy consumed are accounted separately. 

Surplus energy generated by the rooftop solar panels is fed into the grid. The prosumer is compensated for this energy by a deduction of equivalent units from their electricity bill through a system called net metering. 

The energy imported from the grid and the energy exported to the grid are valued at two different tariffs

Changes from the last draft

Source: Author

The ministry has defined the following in the latest draft:

1. Gross-metering: The term refers to a mechanism whereby the total solar energy generated from grid-tied rooftop solar photovoltaic (PV) systems of a prosumer and the total energy consumed by the prosumer are accounted separately through appropriate metering arrangements. For the billing purpose, the total energy consumed by the prosumer is calculated at the applicable retail tariff and total solar power generated is calculated at the feed-in tariff determined by the central regulatory commission.
2. Net metering refers to a mechanism whereby solar energy exported to the grid from grid-tied rooftop solar PV system of a prosumer is deducted from the energy imported from the grid in units (kilowatt-hours) to arrive at the net imported / exported energy. The net energy import (or export) is billed ( or credited / carried over) by the distribution licensee on the basis of the applicable retail tariff. A single bidirectional energy meter shall be used for net metering at the point of supply.
3. Net billing or net feed-in: The energy imported from the grid and energy exported from grid-tied rooftop solar PV systems of a prosumer are valued at two different tariffs. The monetary value of the imported energy is based on the applicable retail tariff. The monetary value of the exported solar energy is based on feed-in tariff determined by the central / state regulatory commission. The monetary value of the exported energy is deducted from the monetary value of the imported energy to arrive at the net amount to be billed (or credited / carried-over).

Should you opt for net-metering or net-billing?

Source: Author

The bi-directional meter that will ‘net’ billed for the energy consumed after net-off, can be a prepaid / smart prepaid meter. Through this, the consumer will have the option to pay for grid electricity after the generation of the bill, or in advance.

A prosumer should enjoy the same rights as that of a consumer. The consumer grievance redress forum should include prosumer and consumer representations.