12 States Switch to Net Billing for Rooftop Solar: CEEW

12 States Switch to Net Billing for Rooftop Solar: CEEW

A new report by the Council on Energy, Environment and Water (CEEW) has revealed that 12 Indian states have adopted net billing for rooftop solar connections. The report also stated that 13 states and union territories have adopted group net metering.

The report, titled How Are Indian States Enabling Rooftop Solar Adoption, analysed state-wise policies toward rooftop solar. It noted that 10 states currently offer all five types of metering arrangements – net metering, net billing, gross metering, gross-net metering, and virtual metering.

“Jammu & Kashmir/Ladakh, Himachal Pradesh, Andhra Pradesh, Maharashtra, Arunachal Pradesh, and Goa (along with Union Territories of Andaman & Nicobar Islands, Chandigarh, Dadra & Nagar Haveli and Daman & Diu, Lakshadweep and Puducherry) are the only states or UTs with all five metering regimes – net metering, gross metering, net billing, group net metering, and virtual net metering,” the report said.

Inconsistent terminology across states

The CEEW report highlighted discrepancies in how states define metering models, noting a lack of harmonisation in regulatory language.

“The analysis of regulations across states and UTs shows that the definitions of metering regimes used therein are not harmonised. For instance, in Rajasthan and West Bengal, under net billing, the consumer is provided credit for ‘total generated electricity’, effectively turning them into gross metering. Andhra Pradesh allows a group of consumers to set up an RTS system, and Sikkim gives consumers the right to use the excess electricity generated in their other premises, but neither state uses the term ‘virtual net metering’ or ‘group net metering’,” the report said.

The report also noted the role of state electricity regulatory commissions (SERCs) in slowing down the adoption of modern metering models.

“Despite the proactive interventions of the MNRE and the benefits of net billing and group/virtual net metering for consumers and discoms, our analysis shows that, on the whole, SERCs have been slow to adopt new metering regimes,” the report said.

CEEW Recommendations 

The New Delhi-based think tank made several recommendations to promote rooftop solar in India, including:

• Set clear, time-bound targets to establish the state’s vision for rooftop solar.

• Mandate solarisation of government buildings.

• Standardise RTS installation processes.

• Create the right set of economic incentives for consumers.

• Align metering arrangements with state objectives.

• Enact regulations to enable innovative business models.