MERC Adds Virtual Net Metering in Rooftop Renewable Energy System Rules

Open Access Charges and Losses are exempted until rooftop solar capacity reaches 5,000 MW

September 6, 2024

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The Maharashtra Electricity Regulatory Commission (MERC) has included virtual net metering provisions in the Grid Interactive Rooftop Renewable Energy Generating System (Second Amendment) Regulations, 2024.

Residential consumers in multi-storied buildings are allowed to set up renewable energy generating systems at any place within the same distribution licensee area of supply and source renewable energy generated from such systems under virtual net metering arrangement.

The virtual net metering provisions will help consumers of multistorey residential buildings who find installing rooftop solar in common spaces difficult.

However, to promote virtual net metering in its initial roll-out phase, the Commission has exempted open access charges and losses until the rooftop solar capacity reaches 5,000 MW. After crossing the 5,000 MW, open access charges will apply for new installations using the wheeling facility.

As per the new provisions, the Commission placed restrictions that the total capacity of such renewable energy generating system does not exceed the total capacity eligible to each participating consumer.

The Commission has consciously restricted virtual net metering to residential consumers in multi-storied buildings. Other consumers may opt for net or group metering facilities under these regulations or green energy open access.

The Commission has also reworded the renewable energy meter to renewable energy generation meter in the draft regulations.

In housing complexes, the Commission suggested that instead of taking separate connections for the rooftop energy generating system, one of the existing connections can act as a net-metering connection, and surplus energy from that connection can be adjusted against other participating consumers in a pre-specified ratio.

The Commission also added that the residential housing society or apartment owners’ association could set up grid-connected microgrids within their area of operation, including renewable energy systems with or without energy storage to serve multiple residential consumers for optimizing emergency use of diesel-based electricity generation.

The Commissions may also introduce time-of-the-day tariffs under which prosumers are incentivized to install energy storage for utilization of stored solar energy by them or to feed into the grid during peak hours.

Recently, MERC ordered the Maharashtra State Electricity Distribution Company to compensate a developer for the increased cost of the project due to the basic customs duty on solar cells and modules.

The Commission also approved Maharashtra State Electricity Distribution Company’s petition to procure 5,000 MW of solar and 1,600 MW of thermal power.

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