The development of a regulatory framework for the solar sector has progressed in line with the implementation of applicable policies at the national level and specific state solar policies in some states. As per the Electricity Act, 2003, every state in India has come up with a net metering policy or a rooftop solar policy and regulation which talk about the modalities of installing a grid-connected rooftop solar (RTS) or a small solar power plant in the given state. These policies determine how consumers are compensated for the electricity produced by their solar system.
There are two different types of metering arrangements for the development of rooftop solar PV projects: gross and net metering.
· In a gross metering arrangement, the entire energy generated by the rooftop solar PV system is fed directly into the electrical grid and the system owner is benefited by feed-in-tariff based on the sale of power to the utility.
· In a net-metering arrangement, the focus is primarily on the self-consumption of electricity generation by the consumer. The excess/surplus is either sold to or banked with the local utility. Net metering arrangements, thus, combine elements of captive consumption and exchange of power with the utility.
The regulatory framework in India for the gross-metering-based renewable projects (including solar) has been evolving over the years. This has resulted in enhanced capacity addition from the large capacity solar power projects, which have been implemented under a gross-metering arrangement.
Rooftop solar projects have, thus, far been implemented in India under either gross metering arrangements or on captive consumption arrangements. States like Gujarat have initiated the implementation of small capacity rooftop solar projects under the gross-metering arrangement, with a defined commercial arrangement and interconnection requirements. Technical and commercial requirements for net-metering arrangement have however not been addressed adequately and thus constrains the propagation of this segment of rooftop projects.
A grid connected net-metering arrangement requires:
· Well-defined regulatory and commercial framework to address issues related to third party owned systems
· Provisions under the open access regulations
· Provision related to banking of energy, etc.
Recognizing the need for a model net metering regulation for rooftop solar PV projects, various issues need to be addressed for implementation of grid-connected net-metering based rooftop solar projects such as identification of key business models, and identification of key parameters important from the perspective of developing draft model net-metering based rooftop solar regulation.
