Gujarat allows Net Metering for rooftop solar systems of 1KW to 1MW

The Gujarat Electricity Regulatory Commission (GERC) has revised the Gujarat Electricity Regulatory Commission (Net Metering Rooftop Solar PV GridInteractive Systems) Regulations, 2016. According to the new Gujarat Electricity Regulatory Commission (Net Metering Rooftop Solar PV Grid Interactive Systems) (Third Amendment) Regulations, 2022, net metering will be permitted for rooftop solar systems with capacities ranging from 1 kW to 1 MW. Rooftop solar systems with capacities ranging from 10 kW to 1 MW will be eligible for gross metering.

Residential rooftop solar projects will be permitted under the new regulations, regardless of the sanctioned load. Consumers can takeadvantage of the program’s incentives. For captive consumers and projects set up under third-party sale within the permissible limit, there will be no capacity restrictions up to the sanctioned load demand. If a rooftop project set up under the gross metering mechanism by a residential or government consumer is located on their property, the
DISCOM will purchase ownership or legal possession of the property under the Policy for Development of Small Scale Distributed Solar
Projects, 2019.

Solar project installation will be permitted up to the sanctioned load for projects established under the renewable energy certificate (REC) the mechanism for captive use or third-party sale. The capacity of solar projects built to meet renewable purchase obligation (RPO) requirements will be permitted regardless of their sanctioned load.

• RESIDENTIAL AND GOVERNMENT PROJECTS:

Rooftop solar projects installed on residential consumers’ rooftops will be permitted, regardless of the sanctioned load. A developer can also
set up a solar project on the rooftop of a residential customer to generate and sell power to another consumer on the same premises under a
third-party sale. In this case, the developer and consumer must enter into a lease or power sale agreement.

DISCOM must purchase power at 2.25 ($0.029)/kWh for the first five years from the project’s commissioning in the case of self-owned systems
and SURYA Gujarat project consumers. Following that, they should purchase it at 75% of the simple average of the tariff discovered and
contracted under GUVNL’s competitive bidding process for non-park-based solar projects in the preceding six months from the project’s
commercial operation.

For projects set up for third-party sale, DISCOM must purchase the power at 75 percent of the simple average tariff discovered and contracted
under GUVNL’s competitive bidding process for non-park-based solar projects in the six months preceding the project’s commercial operation.
The same must be fixed for the duration of the contract. GUVNL will declare such rates on a six-monthly basis, and they will be applicable under
the agreement that Soleos will execute with the consumer. Residential consumers will not be charged any bank fees for using solar power.

• CAPTIVE PROJECTS:

There will be no capacity restrictions in this category. The captive consumer must make use of the energy produced by such a project. Annual
documentation must be submitted to prove ownership of the captive solar generating project and annual energy consumption from it.

In the case of solar projects set up for captive use by HT or EHV consumers, energy set-off will be permitted between 7.00 and 18.00 hours on
the same day. After the specified period, the surplus energy should be purchased by the respective DISCOM.

The energy set-off period for solar projects set up by LT demand-based consumers for captive use will be between 7.00 and 18.00 hours. The
surplus energy not consumed by the customer during the period after set-off should be compensated by the respective DISCOMs using the
surplus injection compensation (SIC) rates.

Surplus injection compensation rates for projects established by micro, small, and medium (MSM) manufacturing enterprises will be 2.25
($0.029)/kWh for the first five years following project commissioning. They must later purchase it at 75% of the simple average tariff
discovered by GUVNL for non-park-based solar projects in the six months preceding the project’s commercial operation. The tariff will be in
effect for the duration of the agreement.

For projects set by non-MSMEs, the surplus injection compensation rate will be 75% of the simple average tariff discovered and contracted
under GUVNL’s competitive bidding process for non-park-based solar projects in the six months preceding the project’s commercial operation.
The same will apply for the duration of the agreement.

Solar energy consumed by demand-based consumers will be subject to banking charges of 1.50 ($0.019)/kWh. Banking charges of 1.10
($0.014)/kWh will apply to MSME manufacturing units and other than demand-based consumers. Government buildings will not be levied with
banking fees.

• THIRD-PARTY SALE OF PROJECTS:

The sale of electricity to third-party consumers by the owner of a solar power project will be considered a third-party sale. Developers can also install projects on consumers’ rooftops to generate and sell power through a lease or power purchase agreement.
Energy set-off will be permitted between 7:00 and 18:00 hours of the same day for solar rooftop projects set up by HT/EHV consumers and LT demand-based consumers. After the specified period, DISCOMs should purchase any surplus energy.

DISCOMs must compensate the consumer for any excess energy not consumed during the set-off period at 75% of the simple average of the
tariff discovered by GUVNL for non-park-based solar projects in the six months preceding the project’s commercial operation. The same will
remain constant for the duration of the contract.

Solar energy consumed by demand-based consumers will incur banking charges of 1.50 ($0.019)/kWh. A banking charge of $1.10
($0.014)/kWh will be applied to MSME units other than LT demand-based consumers. Government buildings will not be subject to banking
fees.

Rooftop solar projects under the REC mechanism can be established in accordance with the Central Electricity Regulatory Commission’s
administrative procedures for registration and accreditation (CERC).

The energy accounting for projects established under the REC mechanism should be done in 15-minute time blocks.

Surplus energy after being set off on a 15-minute time block basis should be compensated by DISCOMs at 65 percent of the simple average of
the tariff discovered by GUVNL for non-park-based solar projects in the preceding six months from the project’s commercial operation in the
case of projects set up for captive or third-party sale under the REC mechanism. The tariff will be in effect for the duration of the agreement.

A tariff of 65 percent of the simple average tariff for solar projects located outside of solar parks in the six months preceding the signing of the
PPA will apply to DISCOMs agreeing to purchase electricity under the REC mechanism. The tariff will be in place for the duration of the
agreement.

There will be no banking fees. Cross subsidy surcharges and additional surcharges, as determined by the Commission, will be applied to
projects set up for third-party sale. Transmission and wheeling charges and losses will be assessed based on the project’s location and point of
consumption.

PROJECTS SET FOR RPO COMPLIANCE:

Customers will be able to create projects to meet their RPO requirements regardless of contracted demand. Energy accounting for such
projects must be done in 15-minute increments.

DISCOM will consider purchasing surplus solar energy from captive or third-party solar projects to fulfil its RPO. The DISCOM will compensate
the excess energy injected into the grid at 75% of the simple average of the tariff discovered and contracted through a competitive bidding
process conducted by GUVNL for non-park-based solar projects, and this compensation will be valid for the duration of the agreement. There
will be no banking fees to pay.

When power wheeling or transmission for captive consumption is permitted with open access permission, the transmission charges and
losses, wheeling charges, and unit losses that apply to regular open access consumers will be applied.

CROSS SUBSIDY SURCHARGE AND ADDITIONAL SURCHARGE:

Cross subsidy surcharges and additional surcharges will not apply to captive projects. The cross subsidy surcharge and additional surcharge
will be the same for projects set up for third-party sale as they are for regular open access consumers.

GERC reiterated in February that DISCOMs procuring surplus energy from rooftop solar projects must use the state’s average power purchase
cost of 4 ($0.053)/kWh as the ceiling for the fiscal years 2020–21.

Cost-benefit

The homeowner can conduct a cost analysis and determine the amount of electricity required to be profitable. This could encompass both the quantity of power that can be sent to the grid to produce more cash and satisfy the homeowner’s power needs.

Rooftop solar systems are becoming increasingly popular as a source of electric power since they are renewable and abundant during the day. Implementing an appropriate rooftop solar system with careful planning can result in an endless supply of electric power with low recurrent costs.

Is solar energy a good fit for your home?

This is unquestionably the most important item to understand before installing solar panels. So, how can you know if your home is solar-ready? Here’s a list of “indicators” to look for when determining whether your home is solar-ready:

Solar panels don’t perform well in the shade, thus there should be very little of it. It’s best if there’s a lot of direct sunshine. So, if your property is in the shadow of a skyscraper or was built next to a colosseum, you might want to consider moving before going solar!

How much would you save on your electricity bill if you go solar? Solar doesn’t always work out well for everyone. You should have a power bill of at least $300 every quarter and utilise at least half of your energy during daylight hours to get the most out of your solar panels. This is more of a guideline than anything else. In general, the higher your electricity expense, the more benefit solar panels will provide.

The direction of the roof isn’t important right now. It is, nonetheless, critical. You should have a large North-facing roof to get the most out of solar panels (if you live in Australia). East-West cooperation is also possible. Especially for setups with an overloaded inverter.

Which Solar Panels and Inverters Should You Purchase?

There are numerous brands of solar panels and inverters to choose from. When selecting a solar panel or inverter, keep the following guidelines in mind:

Panels of solar energy:

Choose a business that has been in operation for a long time.

Avoid panels that try to pass themselves off as European or have special qualities.

Get a few quotations and choose a reasonable price and an excellent product rather than paying top dollar.

Inverter:

If you plan on staying in the house for a long time, pay top dollar for a high-quality product.

If you’re buying for a rental property or won’t be staying long, go for a low-cost panel.

What should your contract contain?

The contract you sign should include all the financial, ownership, and performance requirements. Because these systems can contain web-enabled equipment, you should also check to see if someone is collecting data on your home’s energy production and consumption, and who has access to it.

Conclusion

Going solar is a major step. Everything changes when you become aware of how much energy you consume. Your attitude toward energy usage shifts. Not only does it make you feel good about not having to pay those dictator power corporations wads of cash every quarter, but it also makes you feel good about doing something nice for the environment.