HomePolicies & Regulations ›MERC Raises Rooftop Solar Cap to 5 MW in Bid to Boost Industrial Adoption

MERC Raises Rooftop Solar Cap to 5 MW in Bid to Boost Industrial Adoption

The cap, which was previously set at less than 1 MW, has been increased to either 5 MW or the consumer's contract demand/sanction load, whichever is lower.

November 21, 2023. By News Bureau

In a move aimed at promoting the adoption of commercial and industrial rooftop solar installations, the Maharashtra Electricity Regulatory Commission (MERC) has raised the net metering cap for rooftop solar power projects. 
 
The cap, which was previously set at less than 1 MW, has been increased to either 5 MW or the consumer's contract demand/sanction load, whichever is lower.
 
The increase in the net metering cap is part of the latest amendments to the Maharashtra Electricity Regulatory Commission (Grid Interactive Rooftop Renewable Energy Generating Systems) (First Amendment) Regulations, 2023.
 
Under the new regulations, consumers now have the option to choose between group net metering, net billing, or behind-the-meter connection. This flexibility is expected to provide consumers with more choices in managing their energy consumption and production.
 
The Commission clarified that grid support charges will not be imposed until the total installed rooftop capacity in the state reaches 5 GW. However, distribution companies (DISCOMS) can seek approval or clarification regarding charges associated with energy banking.
 
The amended regulations also introduce gross metering, allowing consumers to sell all the electricity generated by their renewable energy systems to DISCOM through a power purchase agreement. The move aims to facilitate greater participation in meeting DISCOM's renewable purchase obligations (RPO).
 
A notable addition is the introduction of group net metering, enabling surplus units injected into the grid to be adjusted against the energy consumed in the monthly bill of service connections. The adjustment is based on a priority list and sharing ratio, allowing consumers to revise these parameters at the start of every financial year.
 
Surplus units generated during off-peak hours for the time of day (TOD) consumers and normal hours for non-TOD consumers are carried forward as energy credits to the next billing period. At the end of each financial year, unadjusted net credited units can be purchased by DISCOM at the approved tariff.
 
The amendments also address the net billing arrangement, wherein surplus energy injected into the grid by a rooftop system is purchased by DISCOM. The consumer is billed for grid consumption at the approved grid tariff, with credit given for injected energy at a predetermined tariff.
 
To enhance transparency, DISCOM must provide consumers with specific information on the electricity bill for each billing period. This includes details of renewable energy generated, opening and closing balances, units consumed, and energy injected into and drawn from the grid.
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