In exercise of the powers conferred by Section 181 & 86(1)(e) of the Electricity Act, 2003 and all other powers enabling in this behalf the Nagaland Electricity Regulatory Commission hereby makes the following Regulations, namely NERC (Rooftop Solar Grid Interactive System Net/Gross Metering) Regulations, 2019.

Short Title, Commencement:

1. These Regulations shall be called the NERC (Rooftop Solar Grid Interactive System Net/Gross Metering) Regulations, 2019 (hereafter referred to as RTS Regulations, 2019).
2. These Regulations shall come into force from the date of publication in the official gazette of the State of Nagaland and shall remain in force unless otherwise reviewed/amended.
3. These Regulations supersede the NERC (Rooftop Solar Grid Interactive Systems based on Net Metering) Regulations, 2016.
4. Words and expressions used in these Regulations and not defined herein but defined in the Electricity Act, 2003 (hereinafter referred to as ‘the Act’), as amended from time to time, shall have the meaning as assigned to them under the Act.

Definitions and Interpretations:

• In these Regulations, unless the context otherwise requires:
• “Act” means the Electricity Act, 2003 (36 of 2003) and subsequent amendments thereof;
• “Agreement” means an agreement entered into by the distribution licensee with the person;
• “Billing Cycle or Billing Period” means the period for which regular electricity bills are prepared for different categories of consumers by the Distribution Licensee.
• “Commission” means the Nagaland Electricity Regulatory Commission constituted under the Act;
• “Consumer” means any person who is supplied with electricity for his own use by a licensee or the Government or any other person engaged in the business of supplying electricity to the public, as per the Act or any other law for the time being in force and includes any persons whose premises are for the time being, connected for the purpose of receiving electricity with a work of a distribution licensee or the Government or any other person as the case may be.
• “Connected load” expressed in KW, KVA or HP, refers to the aggregate of the manufacturer’s rated capacities of all the consuming devices or apparatus connected with the distribution licensee’s service lines on the consumer’s premises which can be operated simultaneously. For the purposed of levy of any charges and for deciding the supply voltage, the connected load shall be determined as per the method prescribed in the NERC (Electricity Supply Code) Regulations, 2012 or any other provisions applicable to the electricity consumer of the Distribution Licensee.

• “Contract Demand” or“ Connected load/Sanctioned Load” means the maximum demand in kW, kVA or HP, agreed to be supplied by the licensee and indicated in the agreement executed between the licensee and the consumer;
• “Distribution Licensee” or “Licensee” means the Department of Power Nagaland granted a license under section 14 (b) of the Act authorising him to operate and maintain a distribution system for supplying electricity to the consumers in his area of supply.
• “Electricity Supply Code” means the NERC (Electricity Supply Code) Regulations, 2012.
• “Eligible consumer” for net metering/Gross metering scheme means a consumer of electricity in an area of supply of the “Distribution licensee”, who intends to set up a grid connected rooftop solar system in the consumer’s premises, which can be self-owned or third party owned, with an intent to offset the consumer’s own consumption or sell the entire electricity to the distribution licensee at the rate prescribed by the Commission.
• Financial Year means the period beginning from 1st April in an English calendar year and ending with the 31st of March the subsequent year;
• “Gross Metering” means the arrangement under which the entire energy generated from rooftop solar system installed at eligible consumer’s premises is delivered to the distribution system without accounting for self consumption / use.
• “Grid” means the low voltage electrical network or the distribution network of the distribution licensee for sales of energy or wheeling of energy.
• “Generation Meter” means an energy meter installed at the point at which electricity generation by rooftop solar system is delivered to the eligible consumer;
• Capacity of the Distribution Transformer (DT) means capacity defined under Regulations 5 of these Regulations;
• “Interconnection point” means the interface of the rooftop solar energy system with the outgoing terminals of the meter / Distribution Licensee’s cut-outs/ switchgear fixed in the premises of the Eligible Consumer.

Provided that, in the case of an Eligible Consumer connected at the High Tension (‘HT’) level, the ‘inter-connection point’ shall mean the interface of the rooftop solar energy system with the outgoing terminals of the Distribution Licensee’s metering cubicle placed before such Consumer’s apparatus;

• “Invoice”means either a Monthly Bill/ Supplementary Bill or a Monthly Invoice/ Supplementary Invoice raised by the distribution licensee.
• “kWp”means kiloWatt peak;
• “Net meter” or“ bi-directional meter” means an energy meter which is capable of recording both import and export of electricity;
• “Net metering” means an arrangement under which rooftop solar energy system installed at an eligible consumer’s premises delivers surplus electricity, if any, to the Distribution Licensee after off-setting the electricity supplied by distribution licensee during the applicable billing period.
• “Obligated entity”means the entity mandated under clause(e) of subsection (1) of section 86 of the Act and identified under Nagaland RPO Regulations.
• “Premises” means Rooftop of a house/ factory/ Ware house/ Government building/ Panchayat Bhavan/ Community centre/ School/ dispensary/ hospital/ place of worship/ parking place/ Group housing society/ Market Society/ market roof top, Residential Campus etc.

• “Rooftop Solar Energy” or “RSE” means the energy generated from the rooftop of eligible consumer using Rooftop Solar (RTS) system;
• “Rooftop solar (RTS) system”or “plant” means the generating station that generates electricity from rooftop solar energy source;
• “Rooftop energy”means the grid quality electricity generated from Rooftop solar energy sources;
• “Renewable Energy Certificate (REC) ”means the certificate issued in accordance with the Central Electricity Regulatory Commission (Terms and Conditions for recognition and issuance of Renewable Energy Certificate for Renewable Energy Generation) Regulations, 2010;

aa) “Renewable Energy Service Company (RESCO)” means an energy service company which owns a renewable energy system and provides renewable energy to the consumer.

Provided that, the distribution licensee may act as a RESCO. However, this business shall be treated as other business of the distribution licensee.;

bb) “Settlement Period” means the period at the end of which Net Metering settlement between the Distribution Licensee and consumer takes place, generally beginning from 1st April in an English calendar year and ending with 31st of March the next year;

cc) “State Nodal Agency”or “SNA”means an entity in the State designated by the State Government to act as the agency to deal with issues related to coordinated development of renewable energy, subsidy approval and distribution to persons developing distributed energy projects, etc.

dd) “Third party owner” means a developer who is generating solar energy on a rooftop but does not own the rooftop but enters into a lease / commercial agreement with the rooftop owner. In case of gross metering arrangement owned by third party, he/she shall enter into an agreement with the Distribution Licensee. However, if a consumer installs rooftop solar system in his premises through a third party and wishes to avail net metering facility, then only the eligible consumer shall enter into an agreement with the Licensee;

• All other words and expressions used in these Regulations although not specifically defined herein above, but defined in the Act, shall have the meaning assigned to them in the Act. The other words and expressions used herein but not specifically defined in these Regulations or in the Act but defined under any law passed by the Parliament applicable to the electricity industry in the State shall have the meaning assigned to them in such law.

Scope and application:

• These Regulations shall apply to the Distribution Licensee, the eligible Consumers of the Distribution Licensee and third party owners of gross metering arrangement of Rooftop Solar (RTS) system in the State of Nagaland.
  • The eligible consumer may install the RTS system which:
• Shall be within the permissible rated capacity as defined under these regulations.
• Shall be located in the premises of the consumer.
• Shall interconnect and operate safely with the Distribution system of the Licensee.
  • These Regulations do not preclude the right of the State authority to undertake the RTS system above 500 Kw through alternative mechanism.

General Principles.

• Subject to the limits and other terms and conditions specified in these Regulations, the eligible consumer(s) of the Distribution Licensee shall be entitled to install RTS system under Net metering or Gross metering arrangement.

Provided that, third party owners who have entered into a lease or commercial agreement for the rooftop in the premises of the eligible consumers, shall also be entitled to install rooftop solar system under gross metering arrangement with the Distribution Licensee, for such capacity which shall be cumulative of the prescribed limits of rooftop solar capacity for each eligible consumer(s) whose rooftop has been leased by the third party owner.

Provided that, third party owners who have entered into a lease or commercial agreement for the rooftop in the premises of a group of consumer(s), shall also be entitled to install rooftop solar system under Net metering arrangement with the Distribution Licensee, for such capacity which shall be cumulative of the prescribed limits of rooftop solar capacity for each eligible consumer(s) of the group whose rooftop has been leased by the third party owner connected with the same Distribution transformer (up to the limit of as defined under these Regulation of DT capacity).

• Provided that, the eligible consumer availing net metering arrangement under these regulations shall not be allowed to apply for gross metering within the same premises.

• Provided that, the eligible consumer or third party owner as the case may be, availing Gross Metering arrangement under these regulations shall not be allowed to apply for Net Metering within the same premises.
  • Provided that, the Distribution Licensee shall, as per eligibility condition specified in these regulations, allow the provision of Net Metering arrangement or Gross Metering arrangement to the consumer(s) or third party owner as the case may be, who intends to install grid connected RTS system.
  • If the eligible consumer(s) installs RTS system under the Net Metering scheme, such eligible consumer(s) shall be entitled to use the power generated from the rooftop solar system at his premises (Self consumption). The surplus power can be injected to the distribution system of the Licensee at the interconnection point.
  • If the eligible consumer(s) or third party owner installs solar rooftop system under the Gross Metering scheme, the entire power generated from such an installation shall be injected to the distribution system of the Licensee (Sale of Power) at the interconnection point.
  • The RTS system must be capable of detecting an unintended islanding condition and must have anti-islanding protection to prevent any feeding into the grid in case of failure of supply/grid. Applicable IEC/IEEE technical standards shall be followed to test islanding prevention measure for grid connected inverters.
  • The consumer(s) may install grid interactive RTS system with or without battery backup. Provided that, the consumer(s) prefers setting up RTS system with battery backup (full load backup/partial load backup), in all such cases, the inverter shall have appropriate arrangement to prevent the battery power to flow into the grid in the absence of grid supply and manual isolation switch shall also be provided.

• The inverter shall have the features of filtering out harmonics and other distortions before injecting the energy into the distribution system. Harmonic Distortion (THD) shall be within the limits specified in the Indian Electricity Grid Code (IEGC)/IEEE technical standards.

Capacity of the Rooftop Solar (RTS) System.

The maximum peak capacity of the grid connected RTS to be installed in a consumer’s premises shall not exceed 100% of the connected/sanctioned load/contracted demand of the consumer.

Provided that, the capacity of the grid connected RTS system to be installed by an eligible consumer(s) or third party owner shall not be less than 1kwp and shall not exceed 500 kWp.

Availing of Central Financial Assistance (CFA)/Incentive based on achievement

The availing of CFA/Incentive, shall be as per the Directive/Guidelines issued by MNRE, Govt of India, as amended from time to time.

Empanelment of Vendors/Agencies for Development of RTS System.

The Distribution Licensee or State Nodal Agency (SNA) shall invite expression of interest for empanelment of vendors/manufacturer of solar panel/system integrators for supply, installation, testing and commissioning of RTS system as per the MNRE guidelines.

The list of empanelled vendors shall be uploaded in the website of the Licensee for consumers to

have the option of installing their RTS system through any of these empanelled vendors.

• Capacity of Transformer. The maximum cumulative capacity of RTS system to be allowed in the area fed from a Distribution transformer (DT) or any other transformer from which power is fed to the eligible consumers shall not be more than 100% of that DT or any other transformer.

Procedure/Rule for application and grant of Grid connectivity.

• The Procedure/Rule for application and grant of grid connectivity will be framed by Distribution Licensee who shall display the same on their website for intending consumers. The rules shall conform to Regulations, shall be non-discriminatory and shall provide expeditious disposal of the applications.

• The eligible consumer(s) or third party owner herein referred to as applicant who intends to install grid connected RTS system in his/her premises shall apply for RTS connectivity as per procedure/rules frame by the Distribution licensee.

Interconnection with the Distribution System/Grid.

1. The interconnection of the RTS system with the distribution system of the Distribution Licensee shall be made as per the technical specifications and standards for connectivity as specified by the Central Electricity Authority.

1. The cost of evacuation system and interconnection of the RTS system with the distribution system shall be borne by the eligible consumer(s) or third party owner, as the case may be. Information related to technical & interconnection standards are given at Annexure-I of these Regulations.
   1. The Distribution Licensee shall ensure that:
2. The interconnection of the RTS system with the distribution system conforms to the specifications, standards and provisions as provided in the Central Electricity Authority (Technical Standards for connectivity of the Distributed Generation Resources) Regulations, 2013 as amended from time to time.
3. The interconnection of the RTS system with the distribution system of the Licensee conforms to the relevant provisions of the Central Electricity Authority (Measures Relating to Safety and Electric Supply) Regulations, 2010, as amended from time to time.
4. The interconnection of the RTS system with the distribution system of the Licensee conforms to the Regulations and provisions framed under Section 53 of the Electricity Act, 2003 and subsequent amendments thereof.
5. In the case of Net Metering, an inter-connection agreement as per Annexure-II(A) is signed between the parties, whereas, in the case of Gross Metering, inter-connection agreement as per Annexure-II(B) is signed between the parties.

1. The interface point shall remain same irrespective of the installed capacity of RTS system. The connectivity levels at which the RTS system shall be connected with the Distribution system shall be as provided in the NERC (Electricity Supply Code) Regulations, 2012 or the voltage level at which the consumer has been given supply by the distribution licensee.

1. The eligible consumer shall be responsible for safe operation, maintenance and rectification of any defect of the RTS system up to the inter connection point, beyond which the responsibility of safe operation, maintenance and rectification of any defect in the distribution system including the Meter/Net or Gross meter, as the case may be, shall rest with the distribution licensee.

1. The distribution licensee shall have the right to disconnect the RTS system at any time without notice in the event of threat/damage from such RTS system to its distribution system to prevent any accident or damage. As prescribed under regulation 10.5, the distribution licensee may call upon the consumer to rectify the defect within a reasonable time.

Metering Arrangement

1. All the meters installed at the RTS system shall comply with the CEA (Installation  and  Operation of Meters), Regulations, 2006 and subsequent amendments thereof.

1. The appropriate meter(s) at the premises of the consumer shall be procured, installed and maintained by the Distribution Licensee at the cost of the eligible consumer. However, if the eligible consumer wishes to procure the appropriate Meter(s), he may procure such meter(s) and present the same to the Distribution Licensee for testing and installation.

1. The location of appropriate meter(s) shall be in accordance with the CEA (Installation and Operation of Meters), Regulations, 2006 with amendments from time to time.

1. The installation of check meters shall be mandatory for rooftop solar system having rated capacity more than 50 kWp. For installation having capacity up to 50 kw, the eligible consumers or distribution licensee whosoever desires, may install check meter at their own cost. In any case, the distribution licensee shall own the check meter. The check meter shall be installed after the inverter of the RTS system.

1. The specification and standards of the check meter shall be the same as or better than the consumer meter installed at the premises of the eligible consumer.

1. All the meters installed shall be jointly inspected and sealed on behalf of both the parties, Provided that, the meter reading taken by the Distribution Licensee shall form the basis of commercial settlement.

Work Completion and Commissioning:

1. The time-line for completion of project shall be as prescribed by MNRE guidelines.

1. RTS System more than 10KW:

On receiving the completion report from the Vendor,  the licencee shall inspect/verify and commission the RTS system after obtaining safety approval from the Chief Electrical Inspector.

1. RTS System of 10KW and below:

On receiving the completion report from the Vendor, the Licensee shall inspect/verify and commission the RTS system.

Energy Accounting and Settlement (Net Metering):

1. The Distribution Licensee shall undertake meter reading according to regular billing cycle.
   1. For each billing period, the distribution licensee shall record readings as below:
      1. The quantum of electricity injected (exported) into distribution system (grid) from RTS system.
      1. The quantum of electricity supplied (imported)  by the distribution licensee to the eligible consumers.
      1. Net billed electricity, for which a payment is to be made by the eligible consumers.
      1. The excess electricity (electricity credit), if any, to be carried over to the next billing period after excluding credit from the previous billing (if any).
      1. The quantum of electricity generated by the RTS system shall be accounted towards RPO Compliance;
   1. If the electricity injected by the RTS system exceeds the electricity consumed during the billing period, such excess injected electricity shall be carried forward to the next billing period as electricity credit and shall be adjusted in the subsequent billing periods but within the settlement period (i.e. financial year).

1. If the electricity supplied by the distribution licensee during any billing period exceeds the electricity generated by the eligible consumer’s RTS system, the distribution licensee shall raise invoice for the net electricity consumption after taking into account any electricity credit balance remaining from the previous billing periods;

1. In case the consumer is under the ambit of time of day tariff, as determined by the Commission from time to time, 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 excess generation over consumption in any time block in a billing cycle shall be carried foward to the corresponding time block in the subsequent month for adjustment purpose.

1. The excess injected electricity measured in kilo-watt hour may be utilized only to offset the consumption measured in kilo-watt hour and shall not be utilized to compensate any other fee and charges imposed by the Distribution Licensee/Commission.

1. At the end of each settlement period, any electricity credits which remain unadjusted, such excess electricity shall be considered as inadvertent injection and shall not be paid for by the Distribution licensee and shall be reset to zero at the begining of each settlement period.

1. In case of Group Net Metering, the settlement between the individual consumer in the group and the third party (if involved) will be the responsibility of the group or third party itself and shall be driven by the agreement between them. The third party aggregator shall not be charged by licensee any fixed charges on this account, but shall be charged for imported energy as per prevailing Rules and Regulations.

1. Regardless of availability of electricity credits with the eligible consumers during any billing period, the consumer(s) shall continue to pay the monthly minimum charge (fixed/demand charges, Government levy, etc) approved by the commission.

1. The RTS system under these Regulations, shall be exempted from all wheeling, cross subsidy, transmission and distribution, and banking charges and surcharges.

1. There shall be no deemed generation charges payable to the eligible consumer of the RTS system.

Energy Accounting and Settlement (Gross metering):

1. The Distribution Licensee shall be responsible for billing of the electricity injected by the RTS system into the distribution grid.

1. The Distribution Licensee shall undertake meter reading according to regular billing cycle.

1. The Distribution Licensee, shall reimburse the eligible consumer or the third party owner as the case may be, for the quantum of injected electricity by RTS system during the billing period by way of ‘Solar Injection Compensation’.

Provided that, the rate at which the solar injection compensation to be paid by the distribution licensee to the eligible consumer or third party owner as the case may be, shall be at the rate (feed in tariff) approved by the commission.

Provided that, the billing period and due date of the bills shall be the same as that of the eligible consumer(s) in whose premises the RTS system has been installed.

Provided also that, the Licensee shall reimburse the eligible consumer(s) or third party owner of the RTS system as the case may be, within the due date of the electricity bill of the consumer in whose premises the RTS system has been installed.

1. The quantum of the electricity generated/injected by the RTS system shall be accounted towards RPO Compliance.

1. Rebate/delayed payment surcharge of the Solar Injection Compensation as the case may be, shall be levied.

1. There shall be no deemed generation charges payable to the eligible consumer(s) or third party owner of the RTS system.

Solar Renewable Purchase Obligation (Solar RPO).

1. In case of net metering scheme, the quantum of solar electricity generation by eligible consumer, who is not defined as obligated entity from the RTS system, shall qualify towards compliance of Renewable Purchase Obligation (RPO) for the Distribution Licensee in whose area of supply the eligible consumer is located.
   1. In case of gross metering scheme, the total quantum of solar electricity injected into the grid by eligible consumer, who is not defined as obligated entity, shall qualify towards deemed Renewable Purchase Obligation (RPO) for the Distribution Licensee in whose area of supply the eligible consumer is located.

Eligibility to participate Renewable Energy Certificate (REC) Mechanism.

1. Nothing contained in these Regulations, shall apply to the Rooftop Solar generator intending to sell power under the Renewable Energy Certificate Mechanism and he/she shall be free to sell power under such mechanism as per the provisions of Central Electricity Regulatory Commission (Terms and Conditions for recognition Energy Generation) Regulations, 2010 and subsequent amendments there of.

1. The eligibility for Renewable Energy Certificate and issuance of such renewable energy certificate shall be as per the eligibility criteria specified under Central Electricity Regulatory Commission (Terms and Conditions for recognition and issuance of Renewable Energy Certificate for Renewable Energy Generation) Regulations, 2010 and subsequent amendments thereof.

Power to give directions.

The Commission may, from time to time, issue such directions and orders as considered appropriate for the implementation of these Regulations.

Power to relax.

The Commission may, by general or special order, relax any of the provisions of these Regulations on its own motion or on an application made before it by an interested person for reasons to be recorded in writing and after giving an opportunity of hearing to the parties likely to be affected.

Power to amend.

The Commission may, from time to time add, vary, alter, suspend, modify, amend or repeal any provisions of these Regulations.