Solar Rooftop vs Net Metering Policies in India

In a general sense, the net metering policy is an agreement that allows the solar PV system owner to sell excess solar energy to the utility company or buy deficit energy from the company applying a meter to track this energy exchange. A grid-connected system is a system in which the solar power system is connected to the local main grid. Loads can be managed on solar power as long as there is sufficient energy available from the sun during the day. The defect is taken care of by the main utility supply. In the case of excess solar energy production, as compared to the load requirement at that moment, the excess energy can be either stored in the batteries or can be sold back to the utility grid. 

 

This difference in energy can be tracked using a meter connected to the solar PV system. The net metering policy was initially introduced in India as a measure to make distributed renewable energy more accessible and economical for electricity consumers across the country. It is regulated by calculating the difference between the export of power generated by the consumer from a rooftop solar installation, and the import of power from distribution companies. The systems of Solar rooftop are connected to the utility grid via the customers’ main service panel and meter and, when generating more power than is needed at the site, reverse the excess electricity to the grid through the power meter, reversing the meter from its usual direction. As the meter works in two ways one approach to quantifying power bought when on location request is more prominent than on-location power creation and the other method to gauge returned capacity to the network, the client pays the “net” of the two exchanges. 

 

 

The implementation of this net metering policy in India has been rocky on the ground. Many Indian states are hesitant to provide a robust environment for rooftop solar, they do not want to sacrifice premium customers who pay a high tariff. This makes India’s net metering policy highly inconsistent. These inconsistencies are currently the biggest challenge for rooftop installer companies and customers. Depending on the demand of various states, net metering policies can restrict the development of rooftop solar based on system size, connection type, metering type, developer model i.e. OPEX or CAPEX, and approval time and procedure.

 

Benefits of Implementing Net Metering

There are many pros and cons of implementing this net metering policy. Any excess energy generated in the grid-connected solar PV system can be fed back to the local utility grid and can be taken back at later stages when required. So, no use to store the surplus energy in batteries for later use, thus, avoiding the heavy costs of batteries. The maintenance costs of the system also reduce to a great extent by eliminating the batteries.

 

Batteries are required only when there are frequent power fluctuations/outages. In a battery-less grid-connected system, if there is a power outage and the grid fails, the solar power system has to stop generating power to ensure the safety of the wiremen working on the failed gridlines.

Solar power systems of solar rooftop panels produce more energy in summer and comparatively less energy in winter. In summer, if solar power generates 100 units and the load requirement is 80 units, then 20 units can be fed back to the grid. Sunlight-based force creates just 60 units in the colder time of year season and the heap necessity is 80 units, at that point, 20 units can be taken from the framework. In this manner, generally abundance age from the sun based force framework is dealt with and net units devoured from the lattice gets zero.

 

Hurdles and Cons of Implementing Net Metering

One of the major hurdles in implementing net metering in solar rooftop installation is system size as most states have an upper limit on the size of a rooftop solar project. Solar rooftop projects of larger size side-lines a large number of commercial and industrial consumers from installing rooftop solar to meet their power needs. States like Odisha do not have a maximum cap on a commercial rooftop project size.

 

Another big challenge of the net metering policy is the various business models under which developers must operate in the state. In a state such as Gujarat, consumers are not allowed to choose a third party owned installation. For consumers who want a rooftop system and cannot invest their capital, it makes things difficult but also for rooftop independent power producers (IPP). Almost all states provide for third party owners or an OPEX based rooftop solar project in their policy. Also, the approval process is yet another major challenge for implementing net metering policies in many states of India. In states like Karnataka, Tamil Nadu, Maharashtra, and Gujarat, developers face lengthy approval processes that can last anywhere between three to six months. Approval processes in Delhi, Andhra Pradesh, Telangana, and Rajasthan are more streamlined and take anywhere between 25 days to 30 days.

 

 

Role of Net-metering Policy in India and Government’s role

Net-metering is very much present and the penetration of solar energy is not relatively high. Indian net metering landscape is greatly influenced by US policy. The electricity regulatory commission of every state in India is trying to customize their respective policy and regulations in-order to provide incentives to the consumers for net-metering to become successful. Even after the central government’s efforts, net-metering has not been readily taken off at the state-level even-though there are regulations in place in all states and UTs.

 

The main reluctance towards the adoption of ‘net-metering’ is the price gap between the wholesale rate of electricity and the billing price of electricity in India and the difference between which is typically borne by other consumers. The government should also need to give subsidies to reduce revenue losses due to net-metering to fill the gap.