Net Metering Policy Maharashtra

November 8th, 2023
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The Maharashtra Electricity Regulatory Commission (MERC) has recently declared the standard tariff for net-meter customers in Maharashtra for the year 2023-24. 

They have set the rate at Rs 3.05 per unit, which means that rooftop solar energy users can sell their extra solar power to local electricity companies at this price. This new tariff is very similar to the previous rate of Rs 3.05-3.10 per unit decided under the PM-KUSUM scheme. The commission sets the price for rooftop solar energy, while competitive bidding is used to determine the long-term prices for other solar and wind power projects.

Maharashtra aims to produce an extra 7500 MW of solar power that will be connected to the grid. Out of this total, 2500 MW will be generated through a collaboration between the Maharashtra State Power Generation Company Ltd and private partners. The remaining 5000MW will be developed by other companies who win the tender.



Although Maharashtra is the 3rd largest state in India, it currently ranks 8th in terms of solar power contribution. However, it has a lot of potential for growth and increasing its capacity for solar power production.

At present, Maharashtra has a total of 1.1 Gw of cumulative solar power capacity. As the Ministry of New and Renewable Energy (MNRE) achieved 175GW of solar installations by 2022, Maharashtra has set an ambitious target of reaching 12 GW of solar power capacity by the same year

Capacity limits at Distribution Transformer level

1. Imagine a Distribution Transformer owned by a utility company with a rated capacity of 1000 kilovolt-amperes (kVA). According to the regulations, the total capacity of all rooftop solar photovoltaic (PV) systems connected to this transformer through net metering should not exceed 40% of its rated capacity, which in this case would be 400 kVA.

2. However, if the Distribution Licensee conducts a thorough load study and determines that the grid can handle more solar energy, they may permit net metering connectivity that exceeds the initial 400 kVA limit based on their findings. For instance, they might allow a total rooftop solar capacity of 600 kVA if the study shows that the grid can safely accommodate it without issues.

Metering Infrastructures

1. All meters must adhere to CEA Regulations, 2006, and any subsequent amendments.

2. Meters should have an Advanced Metering Infrastructure (AMI) feature with an RS 485 or higher communication port.

3. Depending on the system, either a single-phase or three-phase Net Meter should be placed at the point of connection, as determined by the Distribution Licensee.

4. Existing meters at the consumer's premises must be replaced with a Net Meter, with the consumer bearing the cost, following Electricity Supply Code provisions.

5. If the consumer is on a Time-of-Day (ToD) Tariff, the Net Meter should record ToD consumption and generation.

6. The Distribution Licensee is responsible for testing, installing, and maintaining the metering equipment, ensuring it meets the required standards.

7. The consumer must obtain a Renewable Energy Generation Meter at their expense, placed at an appropriate location to measure energy generated.

8. The Renewable Energy Generation Meter maintenance is the responsibility of the Distribution Licensee.

9. Both the Net Meter and Renewable Energy Generation Meter should be easily accessible to the Distribution Licensee for meter reading.

10. For Renewable Energy Generating Systems above 20 kW in a Net Metering Arrangement, a Check Meter (optional for systems up to 20 kW) must be installed by the Distribution Licensee.

11. In the case of Renewable Energy Generating Systems in a Net Billing Arrangement, an additional Check Meter must be installed by the Distribution Licensee for the Renewable Energy Generation Meter.

Electricity Department of Renewable Energy Maharashtra

1.Maharashtra Energy Development Agency

2.Maharashtra Electricity Regulatory Commission

3.Maharashtra State Power Generation Co. Ltd. 

4.Maharashtra State Electricity Board.

5.Mahavitaran or Mahadiscom or MSEDCL (Maharashtra State Electricity Distribution Company Limited)

DISCOM (Distribution Channel)

1.Maharashtra State Electricity Distribution Co. Ltd. 

2.Brihanmumbai Electric Supply Company

3.Spanco Nagpur Discom Limited 

Procedure for Application and Registration

1. The eligible consumer must apply to the Distribution Licensee for connecting their Renewable Energy Generating System to the Licensee's Network. A registration fee is required.

2. The Commission may specify additional fees through the Schedule of Charges of the Distribution Licensee.

3. All applications and fee payments must be done through a web-based processing system using electronic means only.

4. The consumer must provide their email address and mobile number when submitting the application.

5. All communication between the Distribution Licensee and the consumer will be conducted via email and mobile only.

6. Detailed procedures for applying for connectivity are provided in Annexure 1 of the Regulations.

7. There is a model Form and check-list for consumer applications in Annexure 2 of the Regulations.

8. Before rejecting an application for a Renewable Energy Generating System, the Distribution Licensee must notify the applicant of any defects or deficiencies that need to be rectified within 15 days or a longer period if necessary.

9. If approval cannot be granted due to technical constraints, the rejection reasons must be communicated in writing.

10. Applications may be considered based on seniority and capacity availability if the consumer opts for it.

11. The approval for connectivity specifies the maximum permissible capacity and is valid for 6 months from the approval date, with possible extensions.

12. If the consumer fails to set up the system within the specified period, the approval is considered canceled, and they must reapply.

Connection Agreement

Certainly, here's the information rewritten in bullet point format:

- Eligible Consumer's Termination Rights:

  - Terminate Agreement with 90 days' notice to the Distribution Licensee.

- Distribution Licensee's Termination Rights:

  - Terminate Agreement with 30 days' notice if Eligible Consumer breaches terms and fails to remedy within 30 days or as specified.

  - Terminate Agreement with 15 days' notice for non-payment or malpractices.

- Mutual Termination:

  - Agreement may be terminated at any time by mutual consent.



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