Maharashtra Plans Allowing Virtual Net-Metering To Boost RTS

Maharashtra Plans Allowing Virtual Net-Metering To Boost RTS

In a bid to promote rooftop solar installations, the Maharashtra Electricity Regulatory Commission (MERC) has proposed to allow virtual net-metering for residential consumers. The move is meant to empower the urban residents living in multistoried buildings to get the benefits of reducing the monthly electricity bills by adopting solar power through virtual net-meters. The same Commission last year declined to allow the same.

MERC has now come up with a draft regulation on allowing virtual net-metering for residential consumers living in the same service area of an electricity distribution company (discom). Virtual net-metering refers to an arrangement where an individual or a group of individuals can set up rooftop solar at a common site or a site away from their premises but can enjoy the benefits of net-metering. 

The state commission has named the new draft regulation–MERC (Grid Interactive Rooftop Renewable Energy Generating Systems) (Second Amendment) Regulations, 2024. It has asked the stakeholders to submit their suggestions and objections to the draft rules by June 14, 2024.  

“…to facilitate Residential consumers to set-up Renewable Energy Generating System without restricting to own premises, the Commission is enabling setting-up of Renewable Energy Generating System at any location in area of supply of Distribution Licensees and sourcing energy generated from such system under virtual net metering arrangement. Further, provision has also been made to enable multiple Residential consumers to come together and set-up Renewable Energy Generating System at common location,” MERC’s explanatory note on the same read.

CEEW explains how virtual net-meters work. Graph source: CEEW-CEF

Proposed Changes in Rules 

The draft rules proposed to add a new provision under Section 2.1 to include virtual net-metering consumers as eligible consumers. It also puts a clause that the total capacity of the virtual net-meter should not be more than the summation of all the participating consumers. It also proposed a new provision under Section 2.1 of the principal regulation to define virtual net-meter.

“Virtual Net Metering” means a modality whereby entire energy generated/injected from a Renewable Energy Generating System is exported to the grid from Renewable energy meter or gross meter and the energy exported is adjusted in either one or more than one participating Residential consumer(s) including common connection of housing society located within the same Distribution Licensee’s area of supply,” the proposed draft provision read.

While talking about the calculation of monthly bills through virtual net-metering, the draft MERC rules said that the participants have to indicate in their agreement with their discoms on the ratio of benefits under net-metering for each participating member.  

“Provided that capacity of Renewable Energy Generating System becomes available to participating consumer based on such ratio shall not exceed capacity eligible for such consumer under net-metering arrangement,” the draft norms said. The participating consumers will have the option to change the ratio of procurement once in a financial year with an advance notice of two months, the draft norms said.

The MERC in its draft regulations also exempted the open access charges and losses for sourcing electricity from renewable generating systems till Maharashtra’s rooftop solar capacity touches 5 GW. 

Beyond Maharashtra

Besides Maharashtra, several other states have attempted to allow virtual net-metering in India. The Jharkhand Electricity Regulatory Commission (JERC) had also issued a draft notification earlier to allow virtual net-metering for large adoption of solar power in the eastern Indian state. Even the Delhi Electricity Regulatory Commission (DERC) in a progressive move also allowed virtual net-metering, Delhi was also one of the few Indian states/UTs allowing the concept of community solar projects to boost group adoption of solar power.