The Karnataka Electricity Regulatory Commission (KERC) has clarified that if a rooftop solar consumer switches from a net metering arrangement to a gross metering arrangement and carries out wiring modifications, the distribution companies (DISCOMs) must execute a Supplemental Power Purchase Agreement to formalize the change.

In a July 2022 order, the Commission said that the net metering facility for rooftop solar consumers would not be available if they use power from other sources or captive sources through an open access mechanism. Such consumers could choose either a gross metering arrangement or set up a captive project for self-consumption.

However, several open-access consumers complained that the Bangalore Electricity Supply Company (BESCOM) issued a circular last June contradicting the Commission’s directions, resulting in discrepancies in claiming the shortfalls.

Taking note of the complaints, the Commission noted that DISCOMs cannot alter the billing arrangement from net metering to gross metering under existing power purchase agreements (PPA) without adhering to their terms.

In its latest order, the Commission said BESCOM must issue monthly electricity bills for the gross energy exported to the grid on the scheduled meter reading date. The DISCOM must also pay for the gross energy exported per the tariff agreed to in the PPA within 30 days of issuance of the bill.

It said that the import of energy recorded in the existing bi-directional meter during the billing period for electricity consumption must be billed as per the retail tariff and deducted from the amount payable towards gross energy exported.

The Commission said BESCOM must pay interest per month at the rate as per the PPA if payments are delayed beyond 30 days of the bill for the gross energy exported.

If a rooftop solar consumer opts for a captive project for self-consumption by installing a reverse power relay or executing the wheeling agreement, the existing PPA under net metering will be terminated.

The Commission warned BESCOM that its officers would be held accountable and action would be taken against them if the order was not implemented.

In May, the Karnataka government announced a series of measures to expedite the implementation of rooftop solar projects following recommendations from an expert committee.

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