KERC Mulls Setting Generic Rooftop Solar Tariff Under RESCO model

The Himachal Pradesh Electricity Regulatory Commission (HPERC) has issued a draft order for rooftop solar grid-interactive systems based on net metering. The Order is called the Himachal Pradesh Electricity Regulatory Commission (Rooftop Solar PV Grid Interactive System based on Net Metering) Order, 2019.

This order will apply to those domestic consumers who have a letter of approval to install rooftop solar PV grid-interactive systems based on net metering issued after November 15, 2018, and who have subsequently installed these systems.

Key Highlights

  • The distribution company (DISCOM) will compute the per kWh rate payable to domestic supply consumers for the energy credits at the close of the settlement
  • The rate will be equal to 30 percent of the weighted average per kWh rate at which the DISCOM has purchased power from the ground-mounted solar PV projects up to 5 MW capacity located in the state during the calendar year ending December 31.
  • This tariff will be subject to the provisions of the HPERC (Rooftop Solar PV Grid Interactive System based on Net Metering) Regulations, 2015 and the orders issued by HPERC on this matter.
  • The DISCOM will work out the weighted average rate for purchase of energy in respect of each calendar year and upload on its website.
  • The DISCOM will pay customers, for the electricity credits, if any, remaining unadjusted at the end of the settlement period during the useful life of 25 years of the rooftop solar PV system.

“We will be calculating the average purchase rate until December by the DISCOMs and then average it out. 30 percent of that average will be paid to the rooftop solar in the particular settlement period after adjusting the surplus”, said K.L. Gupta, Executive Director (Tariff)  at HPERC.

The draft order will be taken into consideration after the expiry of 14 days from the date of publication in the official gazette of Himachal Pradesh. As of now, the draft order is up for comments and suggestions.

The HPERC has been proactive to make net metering a success in the state of Himachal Pradesh. To facilitate the growth of rooftop solar in the state, in October 2018, HPERC had issued the first amendment to HPERC (Rooftop Solar PV the Grid Interactive System based on Net Metering) Regulations, 2015.

Saumy Prateek Saumy is a senior staff reporter with covering business and energy news since 2016. Prior to Mercom, Saumy was a copy editor at Thomson Reuters. Saumy earned his Bachelors Degree in Journalism & Mass Communication from the Manipal Institute of Communication at Manipal University. More articles from Saumy Prateek.