APERC Lowers Ceiling For Netmetering, Enhances Gross Metering Limits

In its latest draft report, the Andhra Pradesh Electricity Regulatory Commission (APERC) has proposed reducing the upper ceiling limit for net-metering consumers going for rooftop solar. At the same time, the Commission proposed increasing the upper cap for gross meter consumers, hinting at a higher push for gross metered consumers.

The latest draft regulation has been named APERC (The Grid Interactive Solar Rooftop Photovoltaic System under Gross/Net Metering) Regulation 2023. The paper said that the new regulations had been proposed keeping in mind some of the concerns raised by the state discoms about rooftop solar systems and net-metering systems.

The new regulations propose that the minimum capacity under the net metering system for individuals or individuals using multiple services would be 1 Kwp. The same draft rules also proposed 1 KwP of minimum capacity under gross metering. However, the major change is on the upper limit of the capacity allowed under net and gross metering.

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The latest draft rules proposed to reduce the upper ceiling of solar net metering capacity from 1 Megawatt (MW) to 500 Kwp for all categories of net-metered consumers. On the other hand, the Commission has proposed increasing the ceiling of gross metered consumers from the existing 1 MWp to 5 Mwp. The other condition levied by these rules is the capping of the net meter or gross meter up to the contracted load/demand of the consumer. 

APERC said these regulations would be enforceable to all grid-connected solar rooftop systems with or without battery storage. These draft rules also said that the cumulative capacity of all grid-Interactive solar rooftop systems under net/gross metering arrangements connected to a particular distribution transformer/feeder of the licensee should not exceed 80% of its rated capacity.

The rules also said that all meters installed under Gross/Net metering at the SRTPVS should comply with the CEA (Installation and Operation of Meters) Regulations, 2006, and subsequent amendments. The rules also said that the consumers installing the rooftop solar systems would have to bear the gross or net meters cost. It has also asked the discoms to provide information on the cost of the meters and other equipment applicable to the rooftop solar systems on their website. 

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The draft rules also mandated the discoms to deliver the metering equipment within 15 working days in case of LT and within 30 days in case of HT, subject to availability. APERC has also clarified that the discoms would not levy any transmission and wheeling charges from the solar prosumers whenever the solar rooftop systems and consumption are at the same point of the grid. It, however, said that 5 percent of energy injected into the grid by the solar systems in kind should be collected/adjusted towards transmission and distribution charges and losses. 

The Commission has also prescribed the application fee for different capacities solar rooftop systems ranging from Rs 1000 for capacities up to 5Kwp to Rs 1 lakh for capacities up to 1000 Kwp. 

Conclusion

Net metering remains the most efficient way to drive up rooftop solar adoption, as gross metering rates are woefully inadequate from a return on capital perspective. The proposal by APERC certainly has the potential to slow down adoption in the commercial segment, where potential is very high otherwise.

The reluctance of discoms towards promoting rooftop solar is often seen in many states, sometimes even on-record. In one case related to the tariff of net-metering in Maharashtra, which was handled by the Maharashtra Electricity Regulatory Commission (MERC), the state discom-MSEDCL on record told the MERC that domestic prosumers should not be encouraged to generate more solar energy.

The proposed new minimum and maximum capacity under rooftop. Source: APERC