MERC (Net Metering for Rooftop Solar Systems) Regulations, 2015 One Day Workshop on Grid Connected Solar Roof-top Projects in Maharashtra by MEDA Anant Sant, GoMWRD 17 March, 2016

Revised Targets of JNNSM (as on June 2015) Revised targets under JNNSM by five times, reaching 1,00,000 MW by 2022. 40 GW (solar) rooftop and 60 GW through large and medium scale grid connected projects. Expected total investment in setting up 100 GW will be around Rs 6,00,000 crore. 100 GW target is expected reduction of over 170 million tonnes of CO2.

Why Rooftop Solar PV At national level, reduces requirement of land for addition of solar capacities For consumers, it Reduces the dependency on grid power Mitigates diesel generator dependency Long term reliable power source For Discoms, it reduces Day Peak load Demand T&D and conversion losses as power is consumed at the point of generation Most suitable for High End Consumers Max generation during peak usage time Solar power cost is close to the commercial power cost

Roof top Solar PV potential in India According to 2011 Census India has: 330 million houses 166 million electrified houses 76 million houses use kerosene for lighting 1.08 million houses use solar for lighting 140 million houses with proper roof (Concrete or Asbestos / metal sheet) 130 million houses having > 2 rooms Average houses can accommodate 1-3 kWp of solar PV system Large commercial roofs can accommodate larger capacities As a conservative estimate, about 25 GW capacity can be accommodated on roofs of buildings having > 2 rooms alone (considering 20% roofs are available/suitable)

Back ground of MERC (Net Metering for Rooftop Solar Systems) Regulations, 2015 As per the directives of the Commission vide Order in Case No. 86 of 2013, A committee was formed to study technical issues in providing Grid connectivity to small Solar PV projects ( < 1 MW) The committee submitted its report 25 July, 2014. The report was Put up to the Commission The Commission directed to prepare Draft of Regulations on 20 October, 2014. The Draft Regulations finalised after considering the comments received from Public and notified on 10 September, 2015.

Need of separate Regulations for Grid Connectivity of Solar Rooftop PV Connectivity Issues Electricity to be fed into grid at Voltage level below 33 KV No clarity on connectivity norms at these voltages CEA Prepared the CEA (Technical Standards for Connectivity of Distributed Generated Resources), Regulations 2013 in Sept, 2013 to address these issues. Metering issues No regulations for Bidirectional metering i.e. net metering upto 2014. No uniformity in standards, Regulations made by some States. CEA come up with CEA (Installation and Operation of Meters) Amendment Regulations, 2014 on 26 November, 2014 which are applicable to RE plants seeking connectivity with Grid at 415 V.

Need of Regulations…. Cont. Existing RE Regulations are for connectivity at 33kV & above. Existing RE Regulations are applicable for Feed -in-Tariff mechanism . Huge potential for Solar rooftop installation at Residential, commercial complex, office premises, Educational Institute's premises etc. Regulations provide clarity on Technical & Commercial arrangement for Solar Rooftop systems such as connectivity, metering and Energy accounting and settlement etc.

Typical Rooftop Solar System Source: NEPC India Ltd.

Typical Net metering Rooftop Solar system

MERC (Net Metering for Rooftop Solar Systems) Regulations, 2015 Legal Provisions under EA 2003: Sections 61, 66, 86(1) (e) and 181. Who is eligible? Eligible Consumer: (g) “Eligible Consumer” means a consumer of electricity in the area of supply of the Distribution Licensee who uses or intends to use a Solar Photo Voltaic (‘PV’) generating System having a capacity less than 1 MW, installed on a roof-top or any other mounting structure in his premises, to meet all or part of his own electricity requirement, and includes a Consumer catering to a common load such as a Housing Society. Provided that such generating System may be owned and/or operated by such Consumer, or by a third party leasing such System to the Consumer.

MERC (Net Metering for Rooftop Solar Systems) Regulations, 2015 Legal Provisions under EA 2003: Sections 61, 66, 86(1) (e) and 181. A] Technical Arrangement: Net Metering Arrangement: Distribution Licensee shall provide Net metering arrangement on a non-discriminatory and ‘first come, first served’ basis to the Eligible Consumer. Connectivity Standards: As per CEA (Technical Standard for Connectivity of the Distributed Generation Resources) Regulations, 2013. Capacity Limits at Distribution Transformer: Should not exceed 40% rated capacity of Distribution Transformer. (D.T.) Rooftop Solar Capacity limits at Individual Consumers: Should not exceed the Contract Demand or Sanctioned Load of individual consumer and shall be governed by the capacity limits of D.T. specified in point no. iii above.

Contd….. v) Capacity limits for Rooftop Solar system connected at voltage level: In line with MERC (Standards of Performance of Distribution Licensee, Period of giving Supply and Determination of Compensation) Regulations, 2014, shown as follows; Sr. No. Voltage level Threshold limit of Rooftop Solar PV system 1. 230/240 V (1 Ф) Less than 8 kW/40 A 2. 400/415 V (3 Ф) Less than 80kW/100 kVA Less than 150kW/187 kVA (Municipal Corporation areas) 3. 11kV and above >80kW and less than 1000 kVA >150 kW and less than 1000 kVA (Mumbai Metropolitan Region)

Contd….. Interconnection with Distribution Network, Standards and Safety: shall conforms to relevant CEA technical Regulations for Distributed generation, safety Regulations and MERC (State Grid Code) Regulations. Responsibility of Eligible Consumer: Responsible for the safe operation, maintenance and rectification of any defect of the Solar Rooftop system upto the point of Net Meter. ix) Responsibility of Distribution Licensee: a) Connectivity to Eligible Consumer for installation of Rooftop Solar System. b) Specifications, supply, installation, testing and maintenance of the metering arrangement. c) Safe O & M and rectification of any defect in the system, including the Net Meter, beyond the point of Net meter.

Contd….. x) Metering Arrangement: shall have two meters including one bi- directional meter i.e. Net meter. All the meters shall adhere to the Standards as specified in CEA metering Regulations. Net meter shall be supplied by Discom at its cost. xi) Net Metering Connection Agreement: The Distribution Licensee and Eligible Consumer shall enter into the Net metering connection agreement after providing approval for connectivity of Rooftop Solar System with the distribution network but before starting the actual generation. Model Agreement is provided as Annexure in the Regulations.

Contd…… B] Commercial Arrangement: Energy Accounting and Settlement: For each billing period, the Distribution Licensee shall show separately; a) the quantum of units of electricity exported by Eligible Consumer b) the quantum of units of electricity imported by Eligible Consumer c) the Net units of electricity billed for payment by the Eligible Consumer & d) the Net units of electricity carried over to the next billing period. At the end of financial year, any net credited units of electricity, which remains unadjusted, shall be purchased by the Distribution Licensee at APPC* cost. *APPC- Average Cost of Power Purchase as approved by the Commission for that financial year.

Contd….. ii) Solar Renewable Purchase Obligation (Solar RPO): a) Quantum of solar energy consumed by the Eligible Consumer under net metering arrangement shall qualify towards the compliance of Solar RPO of Eligible consumer if it is an Obligated Entity under RPO-REC Regulations. b) Quantum of solar energy consumed by the Eligible Consumer under net metering arrangement shall qualify towards the compliance of Solar RPO of host DISCOM if it is not claimed by Eligible Consumer towards meeting its RPO targets. c) Any surplus/unadjusted units of solar energy purchase by DISCOM at APPC cost shall qualify towards the compliance of Solar RPO of DISCOM. iii) Eligibility to participate under REC mechanism: Eligible Consumer under net metering arrangement shall not be eligible to participate under REC mechanism.

Way Forward Awareness about the provisions of Regulations is needed among the Common Consumers. Distribution Licensees should provide Connectivity to Distribution Network within time lines provided under the Annexure of Regulations. Common Consumers should ensure to procure solar equipment which complies with the standards specified in the Regulations All the concerned stake holders should work together to achieve common goal of development of Solar Rooftop potential as envisaged under JNNSM.

Cost estimation and expected returns for 1 kW Rooftop Solar PV system South facing wall, Roof or Balcony required Approximately 120 sq. ft. space required = 10’ X 12’ System cost without Battery = Rs. 0.75 lakhs MNRE Subsidy @ 15 % = Not considered Estimated generation per day = 4 units per day Estimated sunny day per year = 300 days Estimated net generation = 1200 per year Avoided Cost / Saving = 1200 * Rs. 9# = Rs. 10800 per year Payback without Depreciation benefits = 6.5 years Total estimated Plant life = 25 years # Approximate Industrial / commercial Tariff rate @ Rs. 9.00 /Unit considered

THANK YOU Anant Sant, GoMWRD anantdsant@gmail.com 9423086634