The Andhra Pradesh Electricity Regulatory Commission (APERC) has issued the draft ‘Grid Interactive Solar Rooftop Photovoltaic Systems Under Net/Gross Metering Regulations, 2023,’ under which the net metering upper cap for rooftop solar projects has been reduced from 1 MW to 500 kW, and the gross metering upper cap has been increased from 1 MW to 5 MW.

As per Mercom Research, prosumers with a higher contract demand of up to 5 MW have an alternative for moving toward a gross metering mechanism instead of open access.

The maximum capacity at a single location has been capped at 5,000 kW under the gross metering arrangement.

The cumulative capacity of all grid-connected rooftop solar systems under net metering and gross metering arrangement connected to a particular distribution transformer should not exceed 80% of its rated capacity.

The proposed regulations will apply to all grid-connected rooftop solar systems with or without battery energy storage systems (BESS) installed and commissioned in the areas of the state’s distribution companies (DISCOMs).

The capacity of a grid-connected rooftop solar systems under net metering or gross metering arrangement to be installed at the premises of any individual prosumer should not be less than 1 kW.

Any consumer wishing to install grid-connected rooftop solar systems, with or without BESS, under multiple services of an individual consumer or group net metering framework must ensure that the system’s capacity is at least 5 kW.

The draft regulations have been issued to address the various issues raised by the consumers and the DISCOMs to align the state regulations with the Government of India rules and promote distributed renewable energy generation.

The regulations also include rules for eligibility, application process, feed-in tariffs, charges, and energy settlement.

Eligibility

All registered companies, government entities, partnership companies, and individuals who are the consumers of the state DISCOMs are eligible for setting up grid-connected rooftop solar systems with or without BESS.

Application

The consumer should submit an application fee of ₹1,000 (~$12.19) for capacities up to 5 kW, ₹5,000 (~$60.98) for capacities above 5 kW, and up to 100 kW, ₹10,000 (~$121.97) for capacities above 100 kW and up to 1,000 kW, and ₹100,000 (~$1,219) for capacities above 1,000 kW.

Feed-in Tariff

As per the proposed regulations, for domestic prosumers, the applicable feed-in tariff will be the one determined by the Commission for the year in which the rooftop solar system has been commissioned and will be applicable for 25 years. For other categories, the feed-in tariff will be for 12 years.

According to Mercom Research, the present draft policy has laid the implementation of the feed-in tariff for domestic prosumers for 25 years and for other categories kept for 12 years, leaving behind the commercial and industrial consumer segment vulnerable after 12 years from the date of commissioning.

Whenever the feed-in tariff is not decided for any financial year, the latest feed-in tariff will be applicable until a feed-in tariff for that particular year is determined.

The feed-in tariff will be 50% of the average pooled power purchase cost of the financial year as determined by the Commission, during which the rooftop solar system has been commissioned under net metering.

Also, the feed-in tariff will be 75% of the average pooled power purchase cost of the financial year, during which the rooftop solar system has been commissioned under gross metering in low tension (LT) supply.

The feed-in tariff will be 70% of the average pooled power purchase cost of the financial year, during which the rooftop solar system has been commissioned under gross metering in high tension supply up to 1,500 kW of project capacity.

Further, the feed-in tariff will be 65% of the average pooled power purchase cost of the financial year as determined by the Commission, during which the rooftop solar system has been commissioned under gross metering in HT supply for capacity from 1,501 kW to 5,000 kW.

The feed-in tariff will be 100% of the average pooled power purchase cost of the financial year as determined by the Commission during which the rooftop solar system has been commissioned under gross metering in HT/EHT supply if it supplies the power during the day with battery storage as per the requirement of the DISCOMs.

According to Mercom India Research, the gross metering mechanism linked with the battery storage for estimating the feed-in tariff will promote the energy storage renewable purchase obligation in addition to the maintenance of grid stability.

Transmission and Wheeling Charges

No transmission and wheeling charges and losses will be applicable for prosumers under gross metering or net metering, wherever the injection of energy from the rooftop solar systems and consumption are at the same point of the grid.

In other cases, 5% of energy injected into the grid by rooftop solar systems will be collected and adjusted towards transmission and distribution charges and losses.

Completion Time for the Projects

Rooftop solar systems with a capacity of up to 100 kW should be installed within three months from the date of the agreement.

Further, the time period will be six months for capacities from 101 kW up to 1,000 kW and one year for capacities from 1,001 kW up to 5,000 kW.

In case of any delay beyond three months, a one-time extension of another three months for systems up to 1,000 kW and six months for capacities from 1,001 kW to 5,000 kW will be provided, after which the agreement will be terminated.

Energy Settlement and Billing

The energy settlement and billing will be done on a monthly basis. The DISCOM should show the energy units exported and imported and the net energy units billed to the prosumers in their bill for the respective billing period.

Energy Settlement Under Net Metering

The energy exported from rooftop solar systems will be adjusted against the consumption of energy from the DISCOM in every billing month. In the case of different rooftops belonging to a single owner in a city or town, the combined energy exported from the rooftop solar systems will be adjusted against the combined consumption recorded in various multiple connections of the same consumer.

If energy import/consumption exceeds energy export in a billing month, prosumers will be responsible for paying for the net energy at the applicable retail supply tariff determined by the Commission. Conversely, if there is an excess of energy export over energy import in a billing month, the Discom will make monthly payments for the surplus energy at the Feed-in Tariff set by the Commission.

Energy Settlement Under Gross Metering

The compensation for energy exported from the rooftop solar systems will be calculated based on the feed-in tariff determined by the Commission. This amount will be offset against the total billing demand for energy consumption by the prosumers from DISCOM in each billing month.

In July last year, the state’s New and Renewable Energy Development Corporation (NREDCAP) issued the levelized tariff for the empanelment of bidders to implement grid-connected rooftop solar systems in Andhra Pradesh under the renewable energy service company model for 25 years.

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