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Net Metering – Madhya Pradesh

To be considered for Net Metering policy – Madhya Pradesh

(1) These regulations (regulations, rules, and procedures) may apply to Madhya Pradesh by the Madhya Pradesh Electricity Regulatory (energy in Energy systems and Associated for Net Metering – Madhya Pradesh

(2) They shall extend to the whole of the state of Madhya Pradesh.

(3) They shall come into force from the date of their publication in the official gazette of Madhya Pradesh.

Definitions: for Net Metering – Madhya Pradesh-

(1) In these Regulations, unless the context otherwise requires, – “Act” means the Electricity Act, 2003 (No. 36 of 2003) and later amendments thereof;

(a) “Agreement” means an agreement entered into by the Distribution licensee and the prosumer or consumer;

(c) “Billing cycle” means the time for which bills are raised; (d) “Billing period” indicates the period for which regular electricity bills as stipulated the Commission, are prepared for different types of consumers by the licensee;

(e) “Commission” means the Madhya Pradesh Electricity Regulatory Commission, constituted under the Act; (f) “Consumer” means a consumer as defined in the Act;

(f) “Consumer” means a consumer as specified in the Act;

(g) “Contract demand” means the maximum load in kilowatt (‘kW’) or kilovolt ampere (‘kVA’) or Horse Power (‘HP’), as the case may be, agreed to be supplied by the Distribution Licensee and contracted by the customer, indicated in the agreement;

(h) “Distribution licensee” or “licensee” shall mean a licensee authorized to operate and\maintain a distribution system for distributing energy to the consumers in his area of\supply;

I “Electricity Supply Code” means the Madhya Pradesh Electricity Supply Code, 2021 and\subsequent amendments there to for Net Metering – Madhya Pradesh;

(j) “Eligible Consumer” means a consumer of electricity in the area of supply of the\sDistribution Licensee, who intends to use a renewable energy system in his premises to\soffset all or part or no part of the own’s electrical requirements, given that such systems can\be self-owned or third party leasing such system to the consumer;

(k) “Financial year” or “year” denotes the time commencing from first day of April as per\sEnglish calendar year and concluding with the thirty first day of the March of the next year;

(l) “Gross metering” means an arrangement under which all energy generated by Renewable Energy Generating System installed at prosumer’s premises, is purchased by the Distribution Licensee and the Distribution Licensee raises the bills on the prosumer for his\consumption at the approved Retail Supply Tariff, after giving credit for total generated\electricity at the discovered tariff as per the provisions laid down in these regulations;

(m) “Interconnection Point for net metering arrangement” indicates interconnection of Renewable Energy generating system with the outgoing terminal of the meter in the premises of the\prosumer:

Provided that, in case prosumer is connected at the High Tension (HT) level, the “Interconnection Point” shall denote the interface of the Renewable Energy Generating System with the outgoing terminal of the Distribution Licensees’ metering equipment.

(n) “Interconnection Point for Gross Metering Arrangement” means the interface of the Renewable Energy Generating System with the incoming terminal of the meter in the premises of the consumer: Provided that, in case prosumer is connected at the High Tension (HT) level, the “Interconnection Point” shall mean the interface of the Renewable Energy Generating System with the incoming terminal of the Distribution Licensees’ metering equipment;

(o) “Invoice” means a Monthly Bill / Supplementary bill or a Monthly invoice/Supplementary invoice raised by the distribution licensee; 

(p) “kWp” means kilo Watt peak; 

(q) “Net metering” means an arrangement under which a Renewable Energy Generating System with Net Meter installed at a prosumer’s premises, delivers surplus electricity, if any, to the Distribution Licensee after setting off the quantum of electricity supplied by such Licensee during the applicable Billing Period;

 (r) “Obligated Entity” means the entity mandated under clause (e) of Sub-Section (1) of Section 86 of the Act to fulfill the renewable purchase obligation and which is identified under the Madhya Pradesh Electricity Regulatory Commission (Cogeneration and Generation of Electricity from Renewable Sources of Energy), (Revision-II) Regulations, 2021, as amended from time to time; (s) “Premises” means any land, building or structure or part thereof or combination thereof, wherein a separate meter or metering arrangement has been made by the licensee for measurement of supply of electricity; 

(t) “Prosumer” means a person who consumes electricity from grid and can also inject electricity into the grid for distribution licensee, using same point of supply, as applicable in case of net metering or gross metering arrangement;

(u) “Renewable Energy Generation Meter” means an energy meter used for measuring the\energy generated by Renewable Energy generating system for the purpose of accounting\sand billing for gross metering arrangement and for the purpose of determining RPO in the\snet metering arrangement;

(v) “Renewable Energy Generating System” is the Renewable Energy power system that\uses Renewable Energy for conversion into electricity with or without energy storage and\which is owned and/or controlled by such prosumer and which is located on premises owned\by prosumer;

(w) “Retail Supply Tariff Order” in respect of a licensee means the most recent order issued for Net Metering – Madhya Pradesh by the Commission for the licensee outlining the fees to be charged by the licensee to the numerous types of users for their supply of electrical energy and services.

(x) ‘Storage’ indicates energy storage system utilizing methodologies and technologies like Solid State Batteries or any other device, to store various sources of energy and to deliver the stored energy in the form of electricity;

(y) “Settlement period” indicates the time at the end of which Net Metering or Gross metering arrangement’s settlement of the net credited units or the credited carried forward amount, as the case may be, between the Distribution Licensee and the prosumer takes place, generally beginning from the first day of October as per English calendar year and ending with the thirtieth day of September of the next year;

The other terminology and expressions used herein but not specifically specified in these Regulationsor in the Act, but defined under any law established by the Parliament related to the power industry in the State, shall have the same meaning as granted to them under such law.

Scope and Application for Net Metering – Madhya Pradesh:- 

1. These Regulations would apply to: 

(a) Net Metering Arrangements 

(b) Gross Metering Arrangements 

2. These Regulations shall be applicable to all Grid interactive Renewable Energy generating systems. Provided that, existing prosumers who are already availing the facility of Net Metering and have installed capacity above 500 kW shall continue to get the benefit of net metering facility under these Regulations. 

General Conditions of Net Metering Arrangements and Gross Metering Arrangements for Net Metering – Madhya Pradesh:- 

1. Net Metering Arrangement or Gross Metering Arrangement, as the case may be, shall be permitted by the Distribution Licensee on a non-discriminatory and Distribution Transformer-wise ‘first come, first serve’ basis to the Eligible Consumers who intend to install a Renewable Energy Generating System connected to the Network of such Distribution Licensee Provided that the inter-connection of such system with the network of the Distribution Licensee shall be undertaken in accordance with the standards and norms\specified in the Central Electricity Authority (CEA) (Technical Standard for Connectivity\of the Distributed Generation Resources) Regulations, 2013 or as may be specified in\future.

2. The Eligible Consumer of all categories may install the Renewable Energy Generating System under the Net Metering Arrangement up to 500 kW capacity.

3. The Eligible Consumer of all categories may install the Renewable Energy Generating System under the Gross Metering Arrangement maximum up to 1 MW.

4. The prosumer can either avail facility of net metering arrangement or gross metering\arrangement under these Regulations within the same premises.

5. The minimum size of the Renewable Energy Generating System that can be set up under\sNet Metering Arrangement and Gross Metering Arrangement would be 1 kW.

6. The capacity of the Renewable Energy Generating System to be installed at the Eligible Consumer’s premises shall not exceed the Contract Demand (in kVA) of the Consumer, as applicable.

7. Eligible Consumers with pending arrears with the Distribution Licensee shall not be\eligible for Net Metering Arrangement or Gross metering Arrangement under these Regulations.

8. The eligible consumers having net metering arrangement or gross metering arrangement\sunder these regulations shall not be able to enjoy the facility of Open Access under MPERC (Terms and conditions for Intra-state open access in Madhya Pradesh), Regulations, (Revision -I), 2021. 

9. Third party sale shall not be allowed.

Capacity of Distribution Transformer for Net Metering – Madhya Pradesh : – 

The Distribution Licensee shall update distribution transformer level capacity available for connecting Renewable Energy systems under net metering or gross metering arrangement, as the case may be, on yearly basis and shall provide the information on its website in the format as specified under Annexure-3. Provided that the cumulative capacity allowed at a particular distribution transformer of Distribution Licensee shall not exceed 70% of the rated capacity of the distribution transformer. Provided that in case of HT/EHT Consumer, the installed capacity of the Renewable Energy system under Net Metering or Gross Metering Arrangement shall not be more than 70% of the rated capacity of the transformer of the distribution/transmission licensee catering supply to such consumer

Interconnection with the Grid for Net Metering – Madhya Pradesh :-

1. The Distribution Licensee shall ensure that the inter-connection of the Renewable Energy Generating System with its Network conforms to the specifications, standards and other provisions specified in the CEA (Technical Standard for Connectivity of the Distributed Generation Resources) Regulations, 2013, the CEA (Measures relating to Safety and Electric Supply), Regulations, 2010, and the Madhya Pradesh Electricity Grid Code 2019 (Revision II) or as may be specified in future.

2. The voltage level for connections with the grid shall be as defined in the Madhya Pradesh Electricity Electricity Code 2021 or the voltage level at which the prosumer has been granted supply by the distribution licensee.

3. The purchaser, who installs renewable Energy generating system, shall be responsible for the safe operation, maintenance and rectification of defect of its system up to metering arrangement beyond which the responsibility for safe operation, maintenance and rectification of any defect in the system shall rest with the Distribution Licensee. Total-to-total Voltage Harmonic Distortion (THD) shall be within the limits established in the Indian Electricity Grid Code (IEGC)/IEEE technical standards.

Energy Accounting and Settlement for Net Metering – Madhya Pradesh:-

Net Metering Arrangement:-

1. The Distribution Licensee shall execute metre reading of the bi-directionwithout batteryll prosumers, according to the normal billing cycle.

2. For each Billing Period, the Distribution Licensee shall make the following\sinformation available on its bill to the prosumer:

a. Quantum of electricity injected by RE system in the grid in the billing period, showing opening and closing balance. The electricity delivered by the distribution licensee in the billing period, showing opening and closing balance. Quantum of Net billed electricity;

d. Excess electricity carried over from the last billing period. Excess electricity carried forward to the next billing period. Units used by the Distribution Licensee for RPO compliance;

3. The energy exported by the Renewable Energy Generating System shall be offset against the energy consumption of the prosumer from the Distribution Licensee in the following manner:

a. If the quantum of electricity units exported exceeds the quantum imported during the Billing Period, the excess quantum of electricity units shall be carried forward to the next Billing Period as credited units of electricity. If the quantum of electricity units imported by the prosumer during any Billing Period exceeds the quantum of electricity units exported, the Distribution Licensee shall raise its invoice for the electricity consumption after adjusting the credited units. In such case where the prosumer is under the ambit of time-of-day tariff, the electricity consumption in any time block (e.g., peak hours, off-peak hours, etc. shall be first compensated with the electricity generation in the same time block.

Any cumulative excess generation over and beyond the consumption in any other\stime block in a billing cycle shall be accounted as if the excess generation occurred\sduring the off-peak time block;

d. Provided that the net billed units under Regulation 7(A) clause 3(a), 3(b) and 3(c) shall satisfy the guaranteed minimum consumption criteria or minimum energy charges criteria, as case may be, of the Retail Supply Tariff order for the respective category of consumer else charges determined for guaranteed minimum consumption criteria or minimum energy charges, as case may be, in Retail Supply Tariff shall be applicable.

4. The payment towards unadjusted net credited units of electricity at the conclusion of settlement period shall be payable by the Distribution licensee by 15th November of the current financial year, at the rate equivalent to the lowest tariff rate discovered in the solar / wind bidding, as the case may be, for the State of Madhya Pradesh in the prior Financial Year. In case no rate is discovered in the prior financial year, the lowest tariff rate discovered in the latest previous financial year shall be considered.

Provided that in case of Renewable Energy Plants other than wind or solar, the relevant rate shall be Average Power Purchase Cost as decided by the Commission for such period in its Retail Supply Tariff Order for Distribution Licensee.

Provided that, at the beginning of each Settlement Period, the cumulative amount of injected electricity carried forward shall be re-set to zero.

5. In circumstances where the Fixed Charges are determined based on used units as per Retail Supply Tariff Order, the Fixed Charges shall be computed based on electricity units imported from the Grid.

6. The Distribution licensee in addition to consumer tariff shall be eligible to raise invoice for any other charges as approved by the Commission and any tax/duty/cess imposed by the Government on the net billed units.

7. The prosumer whose entitlement as a consumer of the licensees is discontinued or he is not settling his dues to the licensee, shall not be entitled to receive due amount of the adjustment/credit till the time past dues and other charges as applicable are paid.

8. In case of any disagreement in billing it shall be addressed under the rules of Madhya Pradesh Electricity Regulatory Commission (Establishment of Forum and Electricity Ombudsman for redressal of grievances of the consumers) (Revision – II) Regulations, 2021 as modified from time to time.

9. An illustrated example for energy accounting and settlement under net metering arrangement is provided as Annexure-1.\s7B Gross Metering Arrangement:

1. The Distribution Licensee shall execute metre reading of both, the Renewable Energy Generation Meter and the Consumer Meter, for all prosumers, according to the regular billing cycle.

2. For each Billing Period, the Distribution Licensee shall make the following \sinformation available on its bill to the prosumer:

(a) Quantum of Renewable Energy generation recorded in the Renewable Energy Generation Meter, showing opening and closing balance;\s(b) Quantum of electricity units consumed by the Consumer from licensee’s system in the billing period, showing opening and closing balance;\s(c) Amount of billing credit, if any, in the billing period, showing opening and closing balance;\s(d) Units from Renewable Energy generation used by the Distribution Licensee for RPO compliance.

3. The Distribution Licensee shall purchase complete electricity generated from the renewable energy generating system at the rate equivalent to the lowest tariff rate discovered in the solar / wind bidding, as the case may be, for the State of Madhya Pradesh in preceding Financial Year. In case no rate is discovered in that financial year, the lowest tariff rate discovered in the latest prior financial year shall be considered.

Provided that in case of Renewable Energy Plants other than wind or solar, this rate shall be the appropriate Average Power Purchase Cost as set by the Commission for such period in its Retail Supply Tariff Order for Distribution Licensee in force.

4. The energy supplied by the distribution Licensee during the billing period shall be billed as per the tariff schedule for respective category of consumer and the terms and conditions of the Retail Supply Tariff Order read with provisions under the Madhya Pradesh Electricity Supply Code, 2021, as amended from time to time:

Provided that, the Distribution Licensee shall also be eligible to raise invoice for any other costs as approved by the Commission and any tax/duty/cess levied by the Government.

5. The Distribution Licensee should prepare a net bill comprising of the amount payable by Distribution Licensee as per Regulation 7B (3) above and amount payable by prosumer as per Regulation 7B (4) above for each billing period:

Provided that, if the net bill amount for a billing period is payable by the prosumer, then the same shall be paid by the prosumer within the due date of the bill.

Provided also that, if the net bill amount for a billing period is due by Distribution Licensee, then the same shall be carried forward in the bill for next billing period as credited amount. No interest shall be payable by Distribution Licensee on such credited carried forward amount.

6. At the end of each Settlement Period, the credited carried forward amount payable by the Distribution Licensee, shall be paid to the prosumer latest by the 15th November of the current Financial Year.

7. The prosumer whose entitlement as a consumer of the licensees is discontinued or he is not settling his dues with the licensee, shall not be entitled to receive due amount of the adjustment/credit till the time past dues and other charges as applicable are paid.

8. In case of any dispute in billing it shall be addressed following the rules of the Madhya Pradesh Electricity Regulatory Commission (Establishment of Forum and Electricity Ombudsman for redressal of grievances of the consumers) (Revision — II) Regulations, 2021 as applicable.

8. Renewable Purchase Obligation: -\sThe quantum of energy injected by the prosumer from the Renewable Energy system under net metering or gross metering arrangement shall qualify towards compliance of Renewable Purchase Obligation (RPO) for the Distribution licensee.

9. Applicability of other charges: -\sThe Renewable Energy system under net metering or gross metering arrangement, as the case may be, whether self-owned or third party owned installed on prosumer premises, must be exempted from banking charge, wheeling costs, cross subsidy surcharge and additional surcharge.

10. Metering Arrangement: -\s1. All metres placed at the Renewable Energy Generating System shall comply with the CEA (Installation and Operation of Meters) Regulations, 2006 and subsequent revisions thereof. All metres shall feature Advanced Metering Infrastructure (AMI) (AMI)

facility with RS 485 (or higher) communication port or any other advance communication facility for Net Metering – Madhya Pradesh

2. The Net Metering or Gross Metering Arrangement shall include a single-phase or a three-phase Meter, as may be required, located at the same point of inter-connection to the Distribution system within the premises of the prosumer.

3. In case of Net Metering arrangement, the existing metre in the premises of the prosumer shall be replaced by the bi-directional metre at the cost of the prosumer, in accordance with the provisions of the Madhya Pradesh Electricity Supply Code Regulations 2021 as modified from time to time.

4. In case of Gross metering arrangement, the existing consumer metre in the premises of the prosumer shall be continued for accounting and settlement for the units imported from the grid.

5. If the prosumer is within the ambit of Time-of-Day (‘ToD’) Tariff, the Renewable Energy Generation Meter and the consumer Meter or the bi-directional metre installed (as the case may be), shall be capable of recording ToD generation and consumption respectively.

6. The Distribution Licensee shall be responsible for the testing, installation, and maintenance of the metering equipment, and its conformance to the applicable standards and specifications.

7. The prosumer shall obtain, at his own cost, a Renewable Energy Generation Meter complying to the applicable CEA Regulations.

8. The bi-directional metre or the Consumer metre (in case of Gross metering) and the Renewable Energy Generation Meter shall be located close to the entrance within the premises so as to make it easily accessible to the metre reader.

9. The metres installed shall be jointly inspected and sealed on behalf of both the parties and shall be tested or checked in the presence of the prosumer and representatives of the Distribution licensee. The prosumer shall be fully informed in advance to be present, if he desires to, at the time of testing.

11. Processing of application and application fee: –

The distribution licensee shall simplify the procedure for setting up of RE generation system at consumers’ premises. In this regard, the licensee shall\s(a) Create an online site for receiving applications from customers for installation, interconnection and metering of distributed Renewable Energy systems or devices, at their premises, and update the same on a regular basis.

(b) Prominently display on its website and in all its offices, the following namely: -\s(i) detailed standardised procedure in details for installation and commissioning of roof top Renewable Energy system;\s(ii) a single point of contact to facilitate the consumers in installation of roof top Renewable Energy system from submission of application form to commissioning;\s(iii) address and telephone numbers of offices where filled-up application forms can be submitted;\s(iv) Complete list of documents required to be furnished along with such applications;\s(v) applicable charges to be deposited by the applicant;\s(vi) empaneled list of service providers for the benefit of consumers who want to install roof top Renewable Energy system through service providers; and\s(vii) financial incentives to the consumers, as applicable under various schemes and programmes of the Central and State Governments.

(c) The Distribution licensee shall make the form available on its website and through physical copy at its local offices for Net Metering – Madhya Pradesh

(d) The consumer of the premises shall submit the application to connect its Renewable Energy system to the distribution system of the licensee in the specified form as Annexure-2 to the Regulation along with processing fee of Rs. 1000 (Rupees One Thousand Only) at the local office of the concerned Distribution licensee or online through Web portal of Distribution Licensees.

(e) In case, the application form is submitted in hard copy, it will be accepted and acknowledgement with the registration number for that application shall be generated and sent to the applicant immediately. The hard copy shall be scanned and uploaded on the website as soon as it is received. In case, the application form is received online through web portal of the distribution licensee, the acknowledgement with the registration number shall be generated on submission of application. Application shall be deemed to be received on the date of generation of acknowledgement with registration number; and the application tracking mechanism based on the unique registration number shall be provided by the distribution licensee through web-based application or any other mode to monitor the status of processing of the application like receipt of application, site inspection, metre installation and commissioning etc.

(f) Within 20 days, the licensee shall complete the technical feasibility study and shall communicate to the applicant through email/SMS/post, the sanction / rejection of the application, as the case may be, along with the estimated amount to be deposited and the copy of agreement to be executed by the consumer.

(g) On receipt of full payment, the Distribution Licensee shall approve the application and intimate the same to the applicant by providing a Letter of Approval (LoA) via email/SMS/post, within thirty (30) days from the issuance of acknowledgement of the application.

(h) During the time period from the feasibility study till the completion of installation, in case, there is any requirement of upgradation of distribution infrastructure like augmentation of service line, distribution transformer capacity, etc., for installation of the required capacity of Renewable Energy system, the same shall be carried out by the distribution licensee or consumer, as the case may be in accordance with Madhya Pradesh Electricity Regulatory Commission (Recovery of Expenses and Other Charges for providing electric line or plant used for the purpose of giving supply) Regulations, (Revision-I) 2009 and its subsequent amendments and revisions.

I After installation of Renewable Energy system, the prosumer shall submit the installation certificate to the distribution licensee. The licensee shall complete

signing of connection agreement, installation of metre and successful commissioning of the renewable energy system within thirty days from the date of submission of the installation certificate. Formats of the connection agreement and installation certificate shall be placed on the web portal of the distribution licensee within the thirty days of notification of these regulations.

(j) The consumer shall have the option of purchasing the requisite meter himself, which shall be tested and installed by the distribution licensee.

(k) The timelines as specified above in these Regulations shall be adhered to by the distribution licensee. In case of delay, the licensee may seektake approval from the Commission in specific cases along with justification for the same.

(l) In case of any delay on the part of the distribution licensee without any just cause, the Licensee shall be liable to pay compensation to the consumer at a rate of Rs. 500 (Rupees five hundred only) per day for each day of default.

(m) The distribution licensee shall pass on the financial incentives to the prosumers, as may be provided under various schemes and programmes of the Central and State Governments.

(n) In case of any billing dispute, the prosumer may approach to the Electricity Consumer Grievance Redressal Forum of the concerned Distribution licensee.

12. Penalty or Compensation for Net Metering – Madhya Pradesh

In case of failure to meet the timelines prescribed under these Regulations, the distribution licensee shall be liable to pay compensation to the consumer as specified under Regulation 11 (l) above.

13. Connection Agreement for Net Metering – Madhya Pradesh

The Distribution Licensee and prosumer shall enter into a Net Metering Connection Agreement or Gross Metering Connection Agreement, as the case may be, after approval of connectivity of the Renewable Energy Generating System with the distribution Network by the distribution licensee but before the start of actual generation from the System.

14. Power to give directions: -\sThe Commission may from time to time issue such directions and orders as considered appropriate for the implementation of these Regulations.

15. Power to relax: -\sThe Commission may by general or special order, for reasons to be recorded in writing, and after giving an opportunity of hearing to the parties likely to be affected may relax any of the provisions of these Regulations on its own motion or on a petition filed before it by an interested person.

16. Power to amend: -\sThe Commission may from time to time add, vary, alter, suspend, modify, amend or abolish any provisions of these Regulations.

17. Repealed and Savings for Net Metering – Madhya Pradesh

1. The Regulations namely “Madhya Pradesh Electricity Regulatory Commission (Grid Connected Net Metering Regulations) 2015 and its all changes thereto, are hereby superseded.

2. Nothing in these Regulations shall be interpreted to limit or otherwise impair the inherent power of the Commission to make such orders as may be required to meet the goals of justice or to prevent abuse of the process of the Commission.

3. Nothing in these Regulations shall bar the Commission from adopting, in conformity with the provisions of the Electricity Act, 2003 (36 of 2003), a procedure, that is at variance with any of the provisions of these Regulations, if the Commission, in view of the special circumstances of a matter or class of matters and for reasons to be recorded in writing, deems it necessary or expedient for dealing with such a matter or class of matters.

4. Nothing in these Regulations shall, expressly or impliedly, bar the Commission from dealing with any matter or exercising any power under the Electricity Act, 2003 (36 of 2003), for which no Regulations have been framed, and the Commission may deal with such matters, powers, and functions in a manner it thinks fit.

Please find the link to the official document released by the Government of Madhya Pradesh:

http://www.mperc.in/04022022-Draft_MPERC-Grid-Interactive-RE-System-Regulation-2022.pdf

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