Power Ministry Reconsidering 10 kW Net Metering cap for Rooftop Solar

The Ministry of Power will reexamine capping net metering at 10 kW for rooftop solar installations under the new consumer rules

Clarification on Electricity (Rights of Consumers) Rules 2020 pic.twitter.com/FaRdTLJIA5

— Ministry of Power (@MinOfPower) January 16, 2021

The Ministry of Power (MoP) has issued a clarification for its Electricity (Rights of Consumers) Rules 2020, stating that it will reexamine the provision for capping net metering at 10 kW for rooftop solar installations under the new consumer rules. 

The ministry stated that in the draft of the Electricity (Rights of Consumers) Rules 2020, which was floated for stakeholders consultation, the cap was set at 5 kW capacity for individual rooftop solar systems for net metering. However, based on the comments from the consumers, industry and Discoms, the provision was revised to 10 kW in the final bill.

The decision, as per the ministry, was decided considering the financial health of the Discoms in the country. Stating that it is crucial for the sustainability of the entire value chain of the power sector, i.e. transmission, trading, generation and coal companies, the electrical equipment suppliers. 

“Stating that prior consultation was not done is not correct,” the ministry stated, in response to new representations and comments made by industry stakeholders,

However, the ministry also heeded the request made by the industry stakeholders. And stated that it will examine all such representations and requests, and based on that it will take a call to balance out the interest of all the stakeholders in the bill.

“However, some representations have been received on the issue, which are being examined and based on this a call will be taken for balancing the interest of all stakeholders,” it stated.

Recently, the Ministry of New and Renewable Energy (MNRE) has also had to issue an advisory to clarify the Rooftop Solar Scheme regarding which many vendors are in confusion.

 It stated that “it is clarified that no vendor has been authorised by the Ministry. This scheme is being implemented in the state only by Discoms. The Discoms have empaneled vendors through a bidding process and have decided rates for setting up a rooftop solar plant.” The ministry released the advisory after receiving many complaints that some rooftop solar companies and vendors were setting up rooftop solar plants by claiming that they were authorised by the ministry.