MPUVNL announces new decentralized solar policy and rooftop solar tariff reaches at INR 1.38/kWh

  • Madhya Pradesh Govt. recently introduced a decentralized solar policy to encourage the development of the decentralized RE projects and applications in the state. The policy allows decentralized RE systems of the following types:
  1. Grid-connected RE systems:
  • Category I: On Net-metering basis
  • Category II: Gross metering with wheeling and banking
  • Category III: For consumption within premises with no export of power (Reduction in the base load during the day)
  • Off-Grid RE systems
  • The policy also encourages Net-metering RE systems under the categories mentioned above. The system capacity for both grid-connected and off-grid is of 2 MW. Bulk consumers who are single point consumers are also eligible under the policy.
  • The maximum permissible capacity of the RE systems for all the Net-metered RE systems connected to a particular distribution transformer of the licensee’s grid shall be equal to the rated capacity of the said distribution transformer MPERC Net metering regulations 2015.
  • In case the cumulative capacity of the proposed RE system exceeds, it is the distribution transformers responsibility to provide the infrastructure to accommodate the proposed capacity.
  • In the case of an LT Net metered consumer, the RE beneficiary will not bear the cost of the augmentation of the infrastructure, whereas, in case of the HT consumer, the infrastructure will be upgraded by the distribution licensee at the cost of the consumer.
  • In case installation of the decentralized renewable energy system for low tension (LT) consumer requires system augmentation, such as replacement of existing distribution transformer (DT) with a DT of higher capacity, the entire cost related to augmentation for the interconnection of the renewable energy system with the network of the DISCOM will be borne by the DISCOM. The DISCOM can claim it as part of the ARR filing.
  • Excess or surplus energy remaining banked with the distribution licensee at the end of the year will be settled at an Average Pooled Power Purchase Cost (APPC).
  • Ways to implement the RE projects under RESCO include:
  • Build Own Operate Maintain (BOOM): RESCO will Build, own and operate the system for its lifetime period and supply power to the consumer for the lifetime agreement. RESCO will uninstall the infrastructure once the lifetime period is over and build the roof in the same condition.
  • Build Own Operate Transfer (BOOT): RESCO will finance, develop own and supply power to the consumer from the RE system for the lifetime period under the agreement. Post the agreement period, the system will be transferred to the RE consumer as per the agreement, wherein the consumer can assign the RESCO for the O&M maintenance under the suitable agreement between both the parties.
  • Incentives on various charges are as follows: Open access to be available to all RE systems specified in the MPERC open access regulations 2015, Wheeling charges will be available to all RE systems as specified in the MPERC regulations. Further, Govt. of MP will provide a grant of 4% in terms of energy injected and the balance if any, shall be borne by the RE consumer.
  • Cross-subsidy is exempted for RE system under this policy and net metered systems are exempted from banking charges & wheeling charges as per MPERC regulation 2015. However, Category II, III and Off-Grid systems ate not exempted from the above-mentioned charges.
  • Electricty duty will not be applicable to the producer of renewable energy beneficiary, consumer, licensee for supply, sale or consumption of RE from generating systems installed under this policy for a period of 10 years from the date of start of supply.
  • Consumers connected at LT level will be exempted from electricty duty for a lifetime of the RE system.
  • The installation of the RE system on the premises of the RE beneficiary will not be considered in the Floor Area Ratio (FAR) and will be provided additional FAR for construction in the premises according to the capacity proposed as per the regulations by Urban Development & Housing Dept. Govt. of Madhya Pradesh.
  • Energy consumed from net-metered renewable energy system by a non-obligated entity qualifies towards renewable purchase obligation (RPO) compliance of the concerned distribution company (DISCOM). The DISCOM does not need to pay for such power.

In addition to the policy, in a new auction for the rooftop RE system, a new tariff of INR 1.38/kWh was discovered for the 35 kW rooftop capacity. The tariff has reduced more than the last discovered tariff for rooftop capacity auction at INR 1.58/kWh.

KERC Determines tariffs and other norms for Solar Rooftop and Small Photovoltaic Power Plants

This Order is applicable to all new grid connected solar rooftop and small solar photo voltaic power plants, entering into Power Purchase Agreement (PPA) and commissioned on or after 2nd May, 2016 and up to 31st March, 2018.

Sharing of Clean Development Mechanism (CDM) benefits between the generating company and the beneficiaries

  • 100% of gross proceeds on account of CDM benefit are to be retained by the project developer in the first year, after the date of commercial operation of the generating station,
  • In the second year, the share of distribution licensees shall be 10%, which shall be progressively increased by 10% every year till it reaches 50% and thereafter, the proceeds shall be shared in equal proportion by the generating companies and the beneficiaries.

Grid Connectivity for roof-top projects

  • 1 kW to 5 kW – single phase 230 volts
  • 5 kW to 50 kW – 3 phase 415 Volts
  • 50 kW to 1 MW – 11 kV line.


  • Metering shall be in compliance with the CEA (Installation and Operation of Meters) Regulations 2006 as amended from time to time.
  • In the case of, solar rooftop PV systems connected to LT grid of a distribution company, the concept of net metering shall be adopted and the net energy pumped into the grid shall be billed.
  • In the net -metering, the consumer is paid for the net energy i.e., the difference between energy generated from solar rooftop plant and consumed by his/her installation.
  • This concept allows only surplus energy to be injected into the grid. The Commission had proposed to continue with net-metering concept for all consumers, other than domestic consumers.
  • In the case of domestic consumers, the Commission had proposed to adopt gross metering concept where the entire energy generated by the solar rooftop plant is allowed to be injected into the grid

Note – An amendment to CEA (Installation and Operation of Meters) Regulations 2006 has been issued recently, in which a new definition of “renewable energy meter” has been introduced to extend clarity to net-metering scheme.

  • If export>import, ESCOM pays generator at the tariff determined.
  • If import > export; then generators pays to DISCOM at prevailing retail tariff.


Applicability of Wheeling and Banking Charges and Cross Subsidy Surcharge:

For solar generators going with intra-state open-access, no wheeling/banking charges or cross- subsidy charges are to be paid.

The copy of the order can be accessed here.

JERC Finalizes Solar Ground Mounted & Solar Rooftop Regulation

The Joint Regulatory Commission for Goa and Union territories (JERC) has notified its final copy of regulation for solar ground-mounted and rooftop solar projects. The notified copy has been published in the official gazette also, so the regulation has already come into force. The regulation will remain in force for a period of three years unless revised or extended by the commission.

Solar Rooftop Regulation:

This regulation will extend to the State of Goa and the Union Territories of Andaman and Nicobar Islands, Chandigarh, Dadra & Nagar Haveli, Daman & Diu, Lakshadweep, and Puducherry.

  • Solar PV and I or Solar Thermal power projects of more than 500 kWp and Rooftop Solar Power projects of more than 1 kWp capacity but less than 500 kWp, rooftop projects with higher capacities can be accepted under stable grid conditions.
  • The rooftop project can be developed under Gross Metering or Net metering mechanism.
  • Third party ownership of the rooftop systems is allowed such generation will be eligible for availing open access.
  • The target capacity for the solar generation would be equal to solar power obligations in the respective territories as per Procurement of Renewable Energy Regulations of the Commission.
  • The Net Metering consumer will receive bills with the difference between imported and exported energy being shown clearly.
  • At the end of each settlement period, a maximum of 100% of the solar energy generated from rooftop system will be adjusted against the energy imported from the distribution system.
  • The settlement period would be six month I.e.  From April to September and October to March.
  • The solar power generators are exempted from payment of any charges towards wheeling, banking, line losses and cross-subsidy to the extent of energy produced.

Solar RPO Applicability

  • Net Metered or Gross Metered Consumer: All energy produced by the solar project (self-consumption and excess) shall be accounted towards RPO of the Discom.
  • Open Access Consumer: In case the OA consumer and the solar power generator both are obligated entities, then only one of two would be able to claim RPO compliance for the solar energy generated.

Eligibility for REC’s

  • Net-metering injection is not eligible for REC.
  • Sale of power to Discom at APPC will be eligible for REC, as per CERC REC regulation 2010 and JERC regulations.

The notified regulation can be accessed here.


Telangana Solar Power Policy 2015

The Government of Telangana has recently announced its new solar policy. The new policy will be known as The Telangana Solar Power Policy 2015. The new Policy will come in force from the date of issue and will remain in operation for five (5) years and all the Solar Projects that are commissioned during the operative period will be eligible for the incentives declared under this policy, for a period of ten (10) years from the date of commissioning.

Objectives of the Policy:

The objective of the Policy includes long term energy security, sustainable fuel for energy generation, promoting solar parks in the state and promoting investment in the solar sector. The policy also targets on promoting distributed and decentralized generation and off-grid solar applications.

For availing benefits under this policy, power generated through solar projects has to be consumed within the state.

Applicability of the Policy – This solar policy shall be applicable for the following solar projects set up within the state –

1)      Solar Power Projects:

a) Grid connected solar power projects based on both Photo Voltaic (PV) as well as Solar Thermal technologies

  • Projects set up for sale of power to TSDISCOM’s.
  • Projects set up for sale of power to third parties within the state.

b) Projects set-up for captive generation/ group captive generation (including those funded and owned by developers).

2)      Solar Roof-top Projects (SRPs) (Grid connected and off grid) – This includes projects which are funded and owned by developers.

3)      Off grid applications.

4)      Any other project which is established based on MNRE/GOI Schemes as amended from time to time.

5)      Solar Parks.

 Incentives Offered:

  • Exemption from the payment of Electricity Duty.
  • Deemed Industry Status will be provided.
  • Pollution Clearance.
  • Facilitation of expeditious approvals through single window clearance.
  • Open Access will be allowed.
  • Exemption from Land ceiling Act.
  • Deemed conversion to Non-agricultural land status.
  • 100% refund of VAT/SGST and 100% refund of Stamp Duty for land purchased for setting up solar project and/or solar park.
  • Exemption from wheeling Charges for captive use within the state.
  • Exemption from payment of Cross Subsidy Surcharge for third party sale within the state.
  • Banking for 100% of energy during all 12 months of the year with must run status for Solar Power Projects.
  • Deemed Public Private Partnership (PPP) Status..
  • Non Agriculture Status for the land where Solar Power Projects will be accorded.

The policy also mentions that solar parks will host solar manufacturing, R&D centers, training facilities and financial institutions within the solar parks.

Surprisingly the policy does not talk about the REC and RPO schemes and its benefits. Also it does not give any specific guidelines about the projects to be developed under REC mechanism, which appears to be serious shortcoming.

The policy offers good number of incentives to the project developer, in terms of tax relaxations, must run status, exemptions from various charges, single window clearance etc..

Considering the state, having a huge potential of 20 GW for solar energy generation, the policy might bring substantial investment in the state. Recently the state invited bids for 2000 MW of solar projects. Now as the policy is offering numbers of incentives to the stake holders, the projects in line might see good response from the investors and stake holders.

The final state solar policy can be accessed here.

BERC (Bihar) Draft Solar Rooftop (Net Metering) Regulation 2015

The Bihar Electricity Regulatory Commission (BERC) has recently notified the draft Net Metering Regulation for Grid Interactive Solar Rooftop Systems. The regulation will allow electricity consumers of the state to generate solar energy on their roof’s, and to consume such generate energy for their internal use and to feed the remaining surplus solar energy into the distribution system.

The main features of the regulation are given in the points below:

  • The systems to be installed under the regulation shall be of min. 1kWp capacity and Max. 1Mwp cap. However the yearly target capacity of 10MW has been fixed in the area of the distribution licensee.
  •  The Discom shall offer the provision of Net Metering to the consumer who intends to install rooftop systems on first come first serve basis.
  •  A max. cumulative capacity at a particular distribution transformer shall not exceed 15% of the peak capacity of the distribution transformer.
  • The capacity of an individual rooftop PV system would be equal to the sanctioned load of the consumer.
  • The energy accounting and settlement will be done based on the reading of the bidirectional meters.
  • Any energy credits of a consumer from previous months will be carried to next billing period and will be set to zero after the settlement period.
  • The electricity generated from a solar rooftop systems shall not be more than 90% of the total energy consumption of any consumer in a settlement period. No payment shall be made by the distribution licensee, beyond this limit.
  • The quantum of energy consumed from the rooftop system will be considered towards the Renewable Purchase Obligation (RPO) of Distribution licensee if the consumer is not an obligated entity.
  • Such rooftop systems shall be exempted from payment of wheeling, banking and cross subsidy surcharge if under Open Access mode.
  • The eligibility for availing benefits of REC mechanism shall be as per CERC REC Regulation 2010.

The regulation can be accessed here.

DERC to Finalize Solar Tariff Soon

According to an article in Times of India, it is expected that the DERC (Delhi Electricity Regulatory Commission) may soon finalize Solar Tariff Regulation, by the end of this month. It will define the regulation for net metering and solar rooftop in the state.

This will allow private entities and individuals to setup rooftop solar for their use and feed the excess power to the grid, with settlement done using Net Metering.

The net metering proposal is at an advanced stage. It’s likely to be released this month. It’s meant for anyone who plans to supply renewable energy to the grid. For large private players, the tariff will be decided on a case-by-case basis depending on capital cost and the solar regulations we have. For individuals, the energy they produce can offset their electricity bills“, said DERC chairperson P D Sudhakar.

DERC is also working on the subsidies and the incentives to be given.

According to our analysis, in a state like Delhi, where RE generation is still lacking, this regulation will fuel up the RE generation and may bring a positive changes. Also recent tariff hike in Delhi may lead to domestic and commercial consumers to switch to Rooftop Solar, with Net Metering. This Regulation may also help Discom’s, which are currently suffering from poor RPO compliance. We expect the Solar Tariffs to be equivalent to the tariffs prescribed by CERC, or maybe higher, so as to encourage small consumers to go for solar rooftops.

The Media article can be read here.

Our previous blog on DERC tariff hike can be read here.

Kerala Finalizes Solar Rooftop Policy

Kerala State Electricity Regulatory Commission (KSERC) through an order on 10th June 2014, has finalized its policy for solar rooftop systems. The policy is named Grid Interactive Distributed Solar Energy Systems.

The policy is aimed at promoting solar power in the state by involving more generators. The policy is applicable for all the distribution licensees in the state and to all consumer availing electricity at voltage levels below 11kV, and shall come into force from the date of publication in the official gazette.

According to the regulation, any consumer may install the solar energy system owned by him or by other third party, provided that the installed energy system should fall under the rated limits, as defined under the regulation, and should comply with the systems of the distribution licensee.

The rated capacity of the installed system shall not be less than 1KWp (Kilo Watt peak) and shall not exceed 1MWp (Mega Watt peak).

The output of the solar system shall comply with provisions of the Kerala Electricity Supply Code 2014, which is defined as –

Sl. No. Type of connection Supply Voltage Output specifications
1 Low Tension Single phase 240 V 240 V, 50 Hertz
2 Low Tension Three phase 415 V 415 V, 50 Hertz
3 High Tension 11000 V 11000 V, 50 Hertz

Banking facility: The solar energy systems installed under this regulation are eligible for the banking facility and shall be done on the basis of the readings taken for the billing period applicable to him.

Metering arrangements: The net meters shall be installed at the interconnection point of the consumer with the network of the distribution licensees, and the solar meters shall be installed at the delivery point of the solar systems to measure the energy generated. The commercial settlement shall be done on the basis of readings of this meters.

The eligible consumers have the right to avail open access for wheeling the excess energy generated to one or more premises owned by him within the area of supply of the distribution licensee. Such right for wheeling access energy shall be available only if the wheeled energy to other premises exceeds 500 units in month and the consumer will be able to avail only 95% of the total energy wheeled, while remaining 5% will be adjusted towards distribution losses.

Accounting and settlement – The accounting of the energy generated, consumed and injected by the consumer shall be done on the basis of the readings taken by the meters, for the period applicable to him.

Solar RPO – The energy generated from the solar energy systems of any consumer shall be accounted towards RPO if the consumer is an obligated entity, and if not, then such energy shall be accounted towards RPO of the distribution licensee.

Banking and Cross Subsidy Charge – The eligible consumers generating solar power under this regulation, shall are exempted from banking and cross subsidy surcharge.

The details of the order can be found here

For more details on net metering, click here


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