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Net Metering – Himachal Pradesh

In compliance to HPERC (Rooftop Solar PV Grid Interactive System based on Net Metering) Regulation, 2015 notified on dated 31st, July 2015 (herein after called regulations) for encouraging solar power generation to harness vast solar potential in the state, HPSEBL  (Himachal Pradesh State Electricity Board)  is pleased to formulate instructions on net metering for grid interactive Roof Top Solar Photo Voltaic Power Plants. The salient features of the policy are detailed below. All the consumers of the HPSEBL  (Himachal Pradesh State Electricity Board) who intend to set up roof top solar PV plants in their premises shall be eligible to do so with project capacity ranging from minimum 1 kWp upto 1 MWp (AC side) with/without battery back-up support. Those consumers, who have already installed Roof Top Solar PV System before commencements of these regulations, shall also be eligible subject to compliance of these regulations. The electricity generated from such a system shall be used to meet the rooftop owner’s internal electricity needs while the excess generation shall be fed into the grid on net metering basis.

Capacity of Rooftop Solar PV Systems;

 1) All eligible consumers of electricity in the area of supply of the distribution licensee can participate in the rooftop solar net metering arrangement, in accordance with the provisions of these of these regulations.

 2) The maximum peak capacity of the rooftop solar system to be installed by any individual consumer covered under two parts tariff shall not exceed 80% of the sanctioned contract demand and such maximum limit in case of an individual consumer, covered under single part tariff shall be 30% of the sanctioned connected load’ Provided that the capacity of Roof Top Solar PV system to be installed by an eligible consumer shall not exceed the following limits:-

Provided further that the cumulative capacity to be allowed in the area, fed from a distribution transformer or any other transformer from which power is fed to the eligible consumer, shall not exceed 30%, or any other percentage as may be fixed by the Commission ,of the rated capacity of such transformers(s): Provided further that in case of multiple applications from the consumers covered by a transformer for participation in the scheme, the connectivity with the grid interactive rooftop solar PV system shall be allowed on first come first serve basis.

Operation and Maintenance: 

The solar plant should comply with the relevant standards specified by the MNRE/BIS and CEA/HPERC. The responsibility of operation and maintenance of the solar photo voltaic (SPV) generator including all accessories and apparatus lies with consumer. The design and installation of the rooftop SPV should be equipped with appropriately rated protective devices to sense any abnormality in the system and carry out automatic isolation of SPV from the grid. The inverters used should meet the necessary quality requirements and should be certified for their quality by appropriate authority; the protection logics should be tested before commissioning of the plant. The automatic isolation or islanding protection of SPV should be ensured for, no grid supply and low or over voltage conditions and within the required response time. Adequate rated fuses and fast acting circuit breakers on input and output side of the inverters and disconnect/isolating switches to isolate DC and AC system for maintaining should be provided. The consumer should provide for all internal safety and protecting mechanism for earthing, surge, DC ground fault, transients etc. To prevent back feeding and possible accidents when maintenance works are carried out by HPSEBL  (Himachal Pradesh State Electricity Board) personnel, double pole/ triple pole with neutral isolating disconnect switches which can be locked by HPSEBL  (Himachal Pradesh State Electricity Board)  Personnel should be provided. This is in addition to automatic sensing and isolating on grid supply failure etc and in addition to internal disconnects switches. In the event of HPSEBL  (Himachal Pradesh State Electricity Board) LT/HT supply failure the consumer has to ensure that there will be no solar power being fed to the LT/HT grid of HPSEBL (Himachal Pradesh State Electricity Board). The consumer is solely responsible for any accident to human beings/ animals due to back feeding from the SPV plant when the grid supply is off. The HPSEBL  (Himachal Pradesh State Electricity Board) reserve the right to disconnect the installation at any time in the event of damage to its grid, meter etc or to prevent accident or damage. The consumer shall abide by all the codes and regulations issued by the HPERC to the extent applicable and in force from time to time. The consumer shall comply with HPERC/HPSEBL/CEA requirements with respect to safe, secure and reliable function of the SPV plant and the grid. The power injected into the grid shall be of the required quality in respect of wave shape, frequency, absence of DC components etc.

The consumer shall restrict the harmonic generation within the limit specified in the agreement or specified by the CEA. The SPG (individual homes/ commercial establishment) may establish LT grid interactive solar power plant in the rooftop or elevated surface with the following options 

a) Grid interactive solar PV system without battery b) Grid interactive solar PV system with battery backup However, in both the options features as per above shall be available so as to ensure islanding of SPV system and prevent back feeding to grid system of HPSEBL (Himachal Pradesh State Electricity Board). The inverter standard shall be such that it should not allow solar power /battery power to extend to HPSEBL’s  (Himachal Pradesh State Electricity Board) LT grid on failure of supply, irrespective of the LT connectivity options.

Energy Accounting and Settlement:- 

The procedure for billing and energy accounting shall be as under:- 

1) The accounting of electricity generating, consumed and injected by the Rooftop Solar system under these regulations shall become effective from the date on which the said system is treated as commissioned as per sub regulation (5) of regulation 7 of HPERC (Rooftop Solar PV Grid Interactive Systems based on Net Metering) Regulations, 2015 

2) Billing shall be done on the basis of the net flows recorded by the Net Meter over the billing period subject to provisions contained in the regulation (10) of HPERC Regulations. 

3) In the event, the eligible consumer exports energy, on net basis, to the distribution system during a billing period, the energy so exported on net basis, shall be carried forward in shape of electricity credit to the immediately next billing period, forming part of the settlement period. 

4) In the event, the eligible consumer imports energy, on net basis and after adjusting the electricity credits if any, carried forward from the immediately preceding the billing period, from the distribution system during a billing period, the distribution licensee shall recover energy charges for such chargeable energy so drawn (i.e. chargeable net energy) at the applicable rates of energy charges as per Regulation (10)

 5) The distribution licensee shall make payment to the eligible consumer , by way of adjustment in the electricity bills, for the electricity credits, if any, remaining unadjusted at the end of the settlement period, at the rates mentioned in Regulation (10).

 6) There shall be no carried forward of any electricity credit, pertaining to a settlement period beyond that settlement period. 

7) The distribution licensee shall effect in the bill the energy units exported or imported, by the consumer as well as the electricity credits brought/carry forward or adjusted as the case may be, during the billing period and the amount payable by the eligible consumer for each component of tariff (i.e. Energy Charges and Demand Charges etc.).

8) In case the eligible consumer is under the ambient of time of day tariff, as determined by the Commission from time to time, the net flows of electricity over the billing period shall be recorded separately for the respective times of day and the energy accounting shall be carried out separately for each Time of Day (ToD) and the net flows during any time period, including the electricity credit if any, shall not be adjusted against the flows or the electricity credit, pertaining to any other time of the day even at the stage of settling the unadjusted electricity credits as per sub-regulation (5). Provided that incase of consumer availing open access, the energy accounting shall also be done in accordance with open access regulations on the basis of flows and deviation for the respective time blocks in which open access is availed and the same shall be duly accounted for while raising bills.

 9) For the energy to be billed or settled as per the provisions under sub-regulation 4, 5 and 8, the distribution licensee shall raise bills or carry out necessary out necessary adjustment, as the case may be, in the following manner and the following rates :-

i) Energy Charges :- a) The quantum of energy for which the energy charges are to be recovered by the distribution licensee for a billing period as per sub-regulation (4), the distribution licensee shall recover energy charges for such chargeable energy so drawn (i.e. chargeable net energy) at the applicable rates of energy charges as per sub-regulation (9). Provided that where different rates of energy charges are applicable for different times of the day (normal, peak and night hours etc. ) as per the applicable tariff, the energy accounting shall be done separately for each time of day as per sub-regulation (8) and energy charges shall be recovered at respective rates for respective quantum of chargeable net energy. 

b) For the quantum of energy to be settled for any time of the day at the end of the settlement period in accordance with sub-regulation 5 & 8, the distribution licensee shall pay, by way of adjustment of amount in future electricity bills, at

c)the fixed rate of Rs.5.00 per kWh of the energy to be settled in case of consumer covered under single part tariff and at a fixed rate Rs. 4.50 p. per kVAh in case of consumer covered under two parts tariff. Provided that if the amount of subsidy or grant or both, available to eligible consumer from Government agencies exceeds 50% of the capital cost of the rooftop solar PV system, the aforesaid rates of Rs. 5.00 per kWh and Rs. 4.50 per kVAh, as applicable, shall be reduced to 50%; Provided further that the Commission may, by order, revise the aforesaid rates of Rs. 5.00 per kWh and Rs. 4.50 per kVAh, as and when it finds it expedient to do so; Provided further that in the event of revision of such rates as per the second provision of this sub-regulation, such revised rates shall be applicable only for such cases in which letter of approval is yet to be issued in accordance with the [provisions contained in sub-regulation 7]

ii)Demand Charges:- The licensee shall recover the demand charges, including the additional demand charges for peak load hours and the contract demand violation charges, from the consumer as per the provisions of the applicable tariff; Provided that actual net demand of power, drawn from the distribution system, during any demand period ( time block of 30 months or any other time block as per the tariff order) shall be considered as the actual demand of the consumer in that demand period; Provided further that average demand for any time of day block of the billing period shall also be worked out on the basis of the net import, if any, of energy by the eligible consumer during the billing period ( but without adjustment of electricity credits) from the distribution system in respect of respective times of the day over the billing period.

iii)Other Charges :- Any other charges as per the applicable tariff shall be charged to the consumer at par with other consumers of similar category who are not generating any Roof Top PV power under this scheme.

iv) The licensee shall not be required to pay any charges to the eligible consumer for any deemed generation in case non-evacuation of power due to non availability of grid or any such reason.

v) In case the applicable tariff provides for billing on kVAh basis, the net import or export of energy and electricity credits etc. shall also be accounted in kVAh.

vi)The distribution licensee shall, in addition to applicable tariff, also be eligible to raise invoice for any other charges as allowed by the Commission.

10) The distribution licensee shall also take the reading of solar meter for recording total solar power generated by Solar PV system of consumer for its Renewable Power Purchase Obligation (RPPO).

11) All the rules, regulations and conditions, applicable to the consumers of the distribution licensee for the applicable category, shall also be applicable to the eligible consumer.

Penalty or compensation :-

In case of failure of net metering system, the provisions of penalty or compensation shall be applicable as per the provisions of the Himachal Pradesh Regulatory Commission (Distribution Performance Standards) Regulation, 2010.

 8) Applicability of Other Provisions :- The provisions of HP Electricity Supply Code, HP Electricity Distribution Code, HP Grid CODE and tariff orders issued by the Commission from time to time, shall be applicable, in respect of matters, not specifically dealt in these regulations. In case of any dispute in billing, the consumer can approach the Dispute Settlement Committee, Consumer Grievances Redressal Forum and Electricity Ombudsman in accordance with HPERC Regulations. All charges on net electricity consumed from HPSEBL (Himachal Pradesh State Electricity Board) shall be livable as usual. All the instructions, rules and regulations applicable to the consumers of the HPSEBL  (Himachal Pradesh State Electricity Board) for the applicable class/category including but not limited to the tariff rates, Payment schedule, Late payment surcharge, connected load/ contract demand, Load surcharge, peak load restrictions, security consumption deposit etc. shall also be applicable to the Roof Top Solar plant owner as a consumer of HPSEBL  (Himachal Pradesh State Electricity Board).

1. Eligibility for Net Metering – Himachal Pradesh

 1.1 Eligibility for net – metering shall be as specified in the Himachal Pradesh Electricity Regulatory Commission (Rooftop Solar PV Grid Interactive System based on Net Metering) Regulation, 2015. First Party is required to be aware, in advance, of the standards and conditions his system has to meet, for being integrated into grid/distribution system. 

2. Technical and Interconnection Requirements for Net Metering – Himachal Pradesh

 2.1 First Party agrees that his Solar PV generation plant and net – metering system will confirm to the Standards and requirements mentioned in the following Regulations, codes . LOA and any other relevant provisions and also that he shall be continued to be governed by all such regulations, codes and other relevant provisions; I) The Central Electricity Authority (Technical Standards for connectivity of the Distributed Generating Resources) Regulations, 2013; ii) The Central Electricity Authority (Installation and Operation OF meters), Regulation 2006; iii) The Himachal Pradesh Electricity Distribution Code, 2008. iv) The Himachal Pradesh Electricity Supply Code, 2009 & further amended in 2014. v) any other provision applicable to the electricity consumer of the distribution licensee. 

2.2 First Party agrees that he has installed or will install, prior to connection of Photovoltaic System to Second Party’s distribution system, an isolation device (both automatic and 17 

2.3 inbuilt within inverter in case of Solar PV Generation and external manual relays) and agrees for the Second Party to have access to and operation of this, if required and for repair —— ———(Name of Discom.)——————-and maintenance of the distribution system.

 2.4 First party agrees that in case of a power outage on Second Party’s system, Photovoltaic System will shut down, automatically and his plant will not inject power into distribution system. 2.5 All the equipments connected to distribution system must be compliant with relevant international (IEEE/IEC) or Indian standards (BIS) and installations of electrical equipment must comply with the Central Electricity Authority (Measures of Safety AND Electricity Supply) Regulation, 2010. 

2.6 First Party agrees that licensee will specify the interface/interconnection point and metering point. 

2.7 First Party and Second Party agrees to comply with the relevant CEA regulations in respect of operation and maintenance of the plant, drawing and diagrams, site responsibility schedule, harmonics, synchronization, voltage frequency, flicker etc. 2.8 Due to Second Party obligation to maintain a safe and reliable distribution system, eligible consumer agrees that if it is determined by the Second Party that First Party’s Photovoltaic System either caused damage to and/or produce adverse effects affecting other consumers or Second Party’s assets, First Party will have to disconnect Photovoltaic System immediately from the distribution system upon direction from the Second Party and correct the problem at his own expense prior to a reconnection.

3. Clearance and Approvals for Net Metering – Himachal Pradesh

 3.1 First Party agrees to obtain all the necessary approvals and clearances (environmental and grid connection related) before connecting the Photovoltaic System to the distribution system.

 4. Access and Disconnection for Net Metering – Himachal Pradesh

 4.1 Second Party shall have access to metering equipment and disconnecting means of Photovoltaic System, both automatic and manual, at all times. 

4.2 In emergency or outage situations, where there is no access to a disconnecting means, both automatic and manual, such as a switch or breaker, Second Party may disconnect service to the premises. 

5. Liabilities 

5.1 First Party and Second Party will indemnify each other for damages or adverse effect from either party’s negligence or intentional misconduct in the connection and operation of Photovoltaic System or Second Party distribution system.

 5.2 Second Party and First Party will not be liable to each other for any loss, profits or revenues, business interruption losses, loss of contract or loss of goodwill, or for indirect, consequential incidental or special damages of the said liability, loss or damage arising in contract, or otherwise.

5.3 Second Party shall not be liable for delivery or realization by First Party for any fiscal or other incentive provided by the Central/State Government beyond the scope specified by the Commission in its relevant order. 

6. Commercial Settlement 

6.1 All the commercial settlement under this agreement shall follow the Net – Metering Regulations and relevant Orders of Himachal Pradesh Electricity Regulatory Commission. 

7. Connection Costs for Net Metering – Himachal Pradesh

7.1 The First Party shall bear all costs related to setting up of Photovoltaic System including metering and interconnection costs. The First Party agrees to pay the actual cost of modifications and upgrades to the service line required to connect the Photovoltaic System in case it is required. 

8. Termination of Net Metering – Himachal Pradesh

8.1 The First Party can terminate the agreement at any time by providing the Second Party with 90 days prior notice. 

8.2 Second Party has the right to terminate Agreement on 30 days prior written notice, if eligible consumer breaches a term of this Agreement and does not remedy the breach within 30 days of receiving written notice from Second Party of the breach. 

8.3 The First Party agrees that upon termination of this Agreement, he must disconnect the Photovoltaic System from the Second Party distribution system in a timely manner and to the Second Party’s satisfaction.

Please find the link to the official document released by HPSEBL (Himachal Pradesh State Electricity Board) – https://himurja.hp.gov.in/wp-content/uploads/2018/09/Guidelines-for-Solar-Power-Plant-Roof-Top-by-HPSEBL.pdf



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