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Net Metering – Karnataka

In place of the originally suggested cap of 10 kW, the Karnataka Electricity Regulatory Commission (KERC) has proposed net metering for rooftop solar installations up to 500 kW.

The KERC has proposed general pricing of Rs. 2.84/kWh for large-scale projects between 1 kW and 2 MW, and Rs. 3.82/kWh for residential rooftop solar systems between 1 kW and 10 kW.

The Commission had proposed general prices of 2.84 ($0.0391)/kWh for installations between 1 kW and 2 MW, and 3.82 ($0.0526)/kWh for residential rooftop solar systems between 1 kW and 10 kW. (large-scale). The proposed tariffs were one of several recommendations made in the discussion paper, and they were valid for the control period between financial year (FY) 2022 and FY 2024.

Earlier, KERC had suggested allowing gross metering for rooftop solar systems with a capacity greater than 10 kW and net metering for projects with a capacity between 1 kW and 10 kW.

A public hearing on “Determination of Tariffs in Respect of Solar Power Projects (Including Solar Rooftop Photovoltaic Projects) for FY 2022 and FY 2024” has been set for August 4, 2021 by the Commission.

The long-awaited revision to the Electricity (Rights of Consumers) 2020 Rules regarding net metering for rooftop solar installations was published by the Ministry of Power (MoP) last month. The modification allows prosumers to use net metering for loads up to 500 kW or the permitted load, whichever is lower.

The arrangements for net metering, gross metering, net billing, or net feedin would adhere to the rules set from time to time by the State Commission under the most recent Electricity (Rights of Consumers) Amendment Rules, 2021.

According to the general rule, a 100 kWp solar plant, which costs about Rs 50 lakh, can result in savings of Rs 1 lakh per month. (Kilowatts Peak, or kWp, refers to energy produced at its peak performance. 

The solar energy generated can only be used in common spaces that are under the association’s control; it cannot be used in individual apartments because BESCOM’s contract is with the apartment association.) Given subsidies and fluctuating bank rates, this might result in a four-year Return on Investment for the majority of flats.

A tiny subcommittee from Vishnu’s flat conducted installation alternatives study. He says, “We chose Hyde Source through a transparent process based on the preferences of the majority of owners after shortlisting three vendors.”

Getting the community’s support is crucial, says Satish Mallya of Century Saras in Yelahanka. Our first challenge was persuading every owner of a flat to invest in it because we calculated that building the plant would cost Rs 30 lakh, according to Satish.

Late in 2018, the Managing Committee formed a group of technical and financial specialists to investigate the concept. On June 5th, the solar power facility owned by Century Saras was officially opened.

The majority of the total maintenance fees for the apartment (20–25%) are made up of high common area power bills. Their shared spaces used 8122 units of energy on average per month, and their last BESCOM bill was about Rs 75,000. According to Satish, the rooftop solar system will “save around 80–83 percent of the apartment’s energy costs, and the investment will be returned in 4.5 years.”

India now has 37 GW of installed solar power, or around 10% of the nation’s total electricity capacity. Karnataka continues to be the Indian state that produces the most solar energy. Karnataka now has a 7,100 MW installed solar power capacity, which is consistent with recent developments.

Applicability for Net Metering – Karnataka

Benefits under the policy shall be available to all solar power projects (solar PV and solar thermal) constructed in the state of Karnataka.

• Grid-connecting, large-scale utility projects.

Any Individual, Firm, Society, Institution, or Registered Company, including Public Utilities, shall be entitled to apply for the development of solar power projects under this policy.

• Rooftop projects and grid connectivity.

Everyone who owns a home, a business, an institution, a government facility, or an industrial unit is entitled to install a solar power plant as long as it doesn’t exceed the allowed capacity. Public utilities and other interested firms and registered companies may also set up roof-top projects on the roofs of third parties.

• Off-Grid initiatives.

Any person may establish projects outside of the grid.

A framework for regulation for Net MeteringKarnataka

The Electricity Act of 2003 requires the Karnataka Electricity Regulatory Commission to establish renewable energy rates, make rules governing the percentage of renewable energy that ESCOMs must acquire, and establish fees for wheeling, banking, and cross-subsidy costs. Regulations set forth by the CERC and KERC will control the requirements for obtaining certification in order to get Renewable Energy Certificates.

The terms of this policy, including the Acts passed by the GOI, shall be subject to any orders, rules, or other dispensations issued from time to time by the State Commission. If there is a conflict between any of the articles of this policy, the orders or regulations issued by KERC will control.

In accordance with the goals of the Tariff Policy of 28 January 2016 and the targets set by MNRE to the State, the Government of Karnataka is working to attain a minimum of 8% contribution from solar sources out of total energy consumption, excluding hydro energy, by March 2021. The goal for grid-connected roof top generating projects is up to 2,400 MW, with a minimum of 6,000 MW to be installed by March 2021. Solar energy would be capped at 200 MWs per Taluk from all sources of generation, with the exception of projects installed on solar roof tops. The Solar Policy identifies numerous categories of projects that will be awarded on a first come, first served basis, with projects under the State programme receiving priority.

The idea combines captive consumption with a power exchange with the utility.

The excess energy injected by solar rooftop PV systems that are net-connected to a distribution company’s grid must be paid for by the ESCOMs at a rate set periodically by KERC.

Metering must adhere to the CEA (installations and operation of metres) Regulations 2006, the Grid Code, the Metering Code, and any other pertinent rules that may be periodically published by KERC/CERC.

ESCOMs will specify detailed guidance on the requirements for network connectivity. The administration of the programme (including registration, approval, metering protocols, safety protocols, and standards) shall fall under the purview of the relevant ESCOMs.

State fiscal benefits and MNRE subsidies must go through a nodal agency.

□ The distribution licensee’s metre reading will serve as the foundation for all financial transactions.

The project site and installation locations may be chosen based on the total amount of energy needed at the location and the amount of usable space available for the installation of rooftop solar PV systems. o Site Requirement & Interconnection Voltage

Export and import metres must be fitted in order to perform net metering in karnataka

Government of India incentives: Various concessions allowed by Ministry of New & Renewable Energy viz central excise duty & customs duty exemptions shall be allowed to project developer.

Please find the link to the official document released by the Government of Karnataka:-




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