Issues faced by developer for net metering

1. ISSUES FACED BY DEVELOPER
FOR NET METERING
BY:-
Ankur Tyagi
MBA 14TH BATCH

2. CONTENT
• Net Metering
• Issues & challenges for Net Metering
• Net Metering policies of Maharashtra, Andhra
Pradesh, Karnataka, Madhya Pradesh
• Way forward

3. Metering Arrangement
Metering
Arrangements
Gross
Metering
Net
Metering
Rooftop solar projects
operates under two kinds
of metering arrangement

4. Gross Metering
• In Gross metering arrangement ( popular in Germany)
entire energy generated by the system is fed directly into
the grid and system owner benefited by sale of power to
the utility at a pre-defined feed-in-tariff (FiT)
• In Gross feed in setup utilities install two meters on the
consumer premises to separately measure the total
electricity exported and imported. Bills are generated
based on difference between the two, given the retail
consumption tariff and the feed in tariff.
• Gujarat, Andhra Pradesh, Goa & Uttar Pradesh allow gross
metering for rooftop solar plant
• Gross metering is more successful where solar tariff is
higher than conventional tariff.

6. Net Metering
• Net Metering (popular in US & Japan) primarily allows self
consumption of generated power while enabling the sale or
banking of additional generation with discom.
• In net feed in model a single bidirectional meter is deployed,
electricity generated by solar panels is consumed within
consumer premises and any excess is exported to the grid and
any deficit is drawn from the grid. The bidirectional meter
measures the net exports and imports to generate electricity
bills.
• Andhra Pradesh, Uttar Pradesh , Maharashtra, Delhi etc. allow
net metering for rooftop solar plant
• Net metering is more successful where solar tariff is equal or
lower than conventional tariff otherwise require financial
incentives/ subsidy.

9. Advantages of Net Metering
• Reduce consumer bills
• Eliminates battery requirement- reduce storage loss & cost
• Low gestation time
• Saving in Transmission & Distribution Losses
• No requirement of land
• Improvement of tail end grid voltage
• Reduction in system congestion
• Local employment generation
• Increases grid reliability by lowering transformer loading and back up
supply
• Improved power quality especially voltage profile with associated reactive
power support by inverters
• Deferring grid investment & costlier peak power purchase cost
• Help in Climate Change mitigation by promoting clean energy
development.

10. ISSUES FACED BY DISCOMS
• Revenue loss to utilities :-
― Reduction in sales volume
― Difficulty in fixed cost recovery due to shifting of consumer to low consumption slab
― Difficulty in recovery of cross subsidy charges due to migration of high paying consumers to
solar rooftop
• Problem with Grid management as solar generation is variable peak in afternoon while peak
load is in evening. Grid treated as backup power source.
• Technical issues like power quality, phase imbalance etc.
• Reactive Power overcompensation due to oversize capacitor banks
• Safety issue due to Islanding during O & M of grid
• Non Coverage of RTPV in TOD system
• Increase in administrative burden (application, registration, technical feasibility study,
inspection, connectivity, metering & billing etc.)
• Increase in financial burden as DISCOM require to pay consumer and invest in grid
upgradation
• Higher wear and tear of Distribution system equipment.
• Higher transaction effort and cost in terms of metering, inspection and certifications.

11. • Metering & Energy Accounting
• Interconnection Arrangement
• Commercial Settlement Process
• Applicability of Regulatory Instruments
ISSUES FACED BY DEVELOPERS WRT
DISCOMs

12. Metering & Energy Accounting
• Non availability of standard, model for Net metering schemes
• Absence of standard Net meter specifications, specifically with
respect to 1 Ph. Connections. Code of practices for use of different
class of import, export meters and generation meter
• Lack of clarity on role of different entities in bilateral/ tripartite
arrangements in project developed by owner/ third party
• Unawareness and lack of clarity in DISCOMS for policy & regulations
• Improper definition of Net metered consumer related to coverage
of self-owned and/or third party developed projects
• Non availability of provisions towards TOD settlements as to how to
align energy settlement under Net metering with the existing
framework

13. Interconnection Arrangement
• Inadequate (Aged) LT level & HT level distribution system (most of DS are
very old and designed for unidirectional flow)
• No proper Grid Management system at Discom level
• Inadequate availability of Net Meters in market
• Power quality already an issue with Discoms
• Low Reliability- Load shedding & Power Outage is very huge ( Loss of PV
Generation as inverter works on reference voltage of Grid)
• Cap on RTPV installation wrt to connected load and total consumption
• Cap on RTPV cumulative installation capacity wrt Distribution Transformer
Capacity ( not an issue at low penetration)
• High capacity rooftop to be connected at HT level that incurs extra cost on
transformers, switchgears and system losses with increase in project
completion time
• Safety Concern due to unintentional islanding or reverse flow of power
• Issue with testing facilities and quality assurance

14. Safety Concern
For the safe system operations of an interconnected distribution
generation following is important:
• Self islanding in the event of Grid faults i.e. protection from
distribution system faults
• Auto cut-off from Grid in the event of internal PV system
breakdown ; Cease to feed power to Grid
• Prevention of feeding power to Grid in the event of Grid
fault/System Break down (Anti- Islanding )
• Protection to People (Public & Utility workers) and Property
• Protection from abnormal Voltage & Frequency levels
• Protection while synchronization with Grid
• Protection against injection of Harmonics, DC supply & Flicker etc.
to the Grid

15. Commercial Settlement Process
Commercial settlement in net metering depends upon:
• Definition of eligible consumer
• Generation capacity limits
• Interconnection voltage
• Energy Accounting
• Net metering settlement period
• Restrictions on level of overall or local Grid penetration
• Renewable Purchase Obligation (RPO)
• Application of other charges & incentives (fixed charge,
connectivity charge, TOD, ABT, GBI) etc.

16. • Cumbersome & Long Approval Process
• Inadequate commercial settlement process
(Discoms Billing Process)
• Weak Financial conditions of Discoms- Not
able to pay pre decided Net Metered Tariff
• Lack of trained manpower for rooftop system
in Discoms
Commercial Settlement Process

17. Applicability of Regulatory
Instruments
• Non availability of clearly defined technical standards and guidelines for Grid
connectivity, metering, safety and security etc. are major barriers in
implementation of such projects
• Current Regulatory framework also lack in addressing the charges related to
wheeling, open access, Cross subsidy etc.
• Indian standards for installation & testing etc. is must in line with international
equipment standards issued by International Electro technical Commission (IEC)
• Unrealistic Net Metering Tariff
• No carry forward of energy allowed to next financial year
• Cap on credited energy adjustment during peak time/seasons
• Cross Subsidy in Tariff structure- Residential, Agriculture & Domestic consumer are
less interested in Rooftop
• Focuses more on self-consumption and energy banking instead of selling power to
utilities.
• REC Mechanism not eligible
• RPOs are not mandatory

18. Other Issues
• High upfront cost involved in putting up solar
panels on rooftops
• Lack of awareness among consumers
• Reluctance by Discoms due to loss of revenue
by decrease in sales, shifting of consumer in
lower consumption slab, reduction in fixed
cost recovery.

19. Technical Issues
• Safety of Utility work personnel due to unintentional Islanding ( Anti
Islanding Function)
• Safety of PV system from grid faults
• Quality of Power being injected in the grid (Harmonics, Flicker, DC
injection, Voltage & Frequency range, Reactive Power Support ,
LHVRT & LHFRT, Power frequency droop characteristics etc.)
• Phase Imbalance
• Reverse Power Flows & associated loss of voltage regulation
• Issues related to protective equipment , earthing and metering
( Above all are not an issue with modern solar inverters with
appropriate protection)

20. Regulation for Rooftop Solar Grid Interactive
Systems’ based on net metering
1. Cumulative capacity targets for a distribution licensee and at
particular distribution transformer level;
2. Consumer eligibility and individual project capacity;
3. Interconnection with the grid;
4. Energy accounting and settlement (including treatment of excess
power injected during peak hours and a cap on power generation
through rooftop solar for individuals);
5. Solar renewable energy (RE) purchase obligation (whether rooftop
solar qualifies for obligation of utility);
6. ƒApplicability of banking, wheeling, and cross-subsidy for third
party owned rooftop systems;
7. ƒEligibility to participate under the Renewable Energy Certificate
(REC) mechanism;
8. Metering arrangement.

21. Net Metering Policy
Net Metering Policy of Andhra Pradesh, Madhya
Pradesh, Maharashtra & Karnataka

22. Andhra Pradesh Madhya Pradesh Maharashtra Karnataka
Policy Yes-Net Metering Draft-Net Metering Yes- Net Metering Yes-Gross Metering & Net Metering
Eligibility All Consumers All Consumers All Consumers All Consumers
Capacity limit at Distribution Transformer Level 60% 15% 40% 80%
Generation Cap of Total Consumption 100% Not Specified Not Specified Not Specified
Capacity limit of Connected Load Not Specified Not Specified 100% Not Specified
Individual Project Capacity & Interconnection Voltage
Standards
1 KWp to 1 MWp
0.5 to 250 KWp
230/240 V (< 3 KWp)
400/415 V (2 KWp to 112 KWp )
11 KV (50 KVA to 300 KVA)
33 KV (100 KVA to 10000 KVA)
≤ 1 MWp
230/240 V (< 8 KWp)
400/415 V (< 150 KWp)
11 KV & above (> 150 KWp)
≤ 1 MWp
230/240 V (< 5 KWp)
400/415 V (5 KWp to 50 KWp )
11 KV & above (> 50 KWp)
Grid Interconnection, Safety, Standards
CEA (Technical Standard for connectivity
of the Distributed Generation Resources)
Regulations, 2013 andS CEA ( Measures
relating Safety and Electric supply),
Regulations, 2010 and the APERC (State
Grid Code) Regulations
CEA (Technical Standard for connectivity
of the Distributed Generation Resources)
Regulations, 2013 and CEA ( Measures
relating Safety and Electric supply),
Regulations, 2010 and the MPERC (State
Grid Code) Regulations
CEA (Technical Standard for connectivity of
the Distributed Generation Resources)
Regulations, 2013 and CEA ( Measures
relating Safety and Electric supply),
Regulations, 2010 and the MERC (State Grid
Code) Regulations
CEA (Technical Standard for connectivity of
the Distributed Generation Resources)
Regulations, 2013 and CEA ( Measures
relating Safety and Electric supply),
Regulations, 2010 and the KERC (State Grid
Code) Regulations
Metering Arrangement
Net Meter, Time of Day Metering
Installed by SPDCL/EPDCL & Cost borne
by consumer
CEA (Installation and Operation of
meters) Regulations 2006
Net Meter, Time of Day Metering
CEA (Installation and Operation of
meters) Regulations 2006
Net Meter, Time of Day Metering
Installed by MSEDCL & Cost borne by
consumer
CEA (Installation and Operation of meters)
Regulations 2006
Net Meter, Time of Day Metering
Installed by BESCOM & Cost borne by
consumer
CEA (Installation and Operation of meters)
Regulations 2006
Energy Accounting & Settlement
1.Treatment of excess Energy
2.Treatment of Solar Energy Supplied during Peak
Hour 3.Price for Financial Settlement
4.Settlement Period
1.Carry forwarded to next month &
financial settlement
2.Not Specified
3.Average Cost of Supply (ACoS) (Rs.
5.33/unit SPDCL & Rs. 5.49/unit EPDCL
4.Monthly
1.Carry forwarded & no financial
settlement
2.Not Specified
3.Not Applicable
4.Not Specified
1.Carry forwarded & financial settlement for
10 % of unit generated
2.Not Specified
3.Average power purchase cost (APPC)
4 Yearly
1.Carry forwarded & financial settlement
2.Not Specified
3.As Determined by KERC (Rs.5.20 to
7.08/Unit without subsidy) & (Rs. 4.63 to
6.03/unit with Subsidy)
4.Yearly
Banking Charges 2% NA NA NA
Solar RPO
Both Consumed power by consumer &
Purchased power by Discom
Both Consumed power by consumer &
Purchased power by Discom
Both Consumed power by consumer &
Purchased power by Discom
Both Consumed power by consumer &
Purchased power by Discom
REC Mechanism Not Eligible Not Eligible Consumer Not Eligible Not Eligible
Application Fee Rs. 25 (Online) Rs. 2000 (Online) Rs. 1000 (Online)
Rs 500 (5 kWp), Rs 1000 (5–50 kWp), Rs
2,000 (>50 kWp) (Online/Offline)
Technical feasibility study Within 07 days of Application Within 15 days of Application Within 07 days of application
Approval for installation Within 15 days of Technical Scrutiny Within 30 days Within 07 days of Technical Scrutiny
Within 03 days of submission of technical
details
Installation Within 3 Months of Approval Within 6 Months of Approval Within 6 Months of Approval Within 6 Months of Approval
Testing & Commisioning & Synchronization Within 10 days of Installation Within 15 Days of Installation Within 15 days of Installation Within 03 days of reciept of all documents
NET METERING POLICY

23. Interconnection Process (BESCOM)

24. Way Forward
• Success of Net Metering Depends on support by Discoms and incremental tariff
available to consumers
• Regulations can be tweaked and revised but the key challenge is in
implementation
• There is a need for clear implementation guidelines for utility staff to enable
interpretation of the rules
• There is need for establishment of single window clearance mechanism and
uniform well designed application forms that will help to reduce timeline for
approval and make process simpler for consumer
• Thus discoms need to be brought on board to support net metering as most of
discom view net metering framework as being unfavorable to their business.
• The government must create an incentive structure such that the benefit from
rooftop solar are shared with the utilities.
• The government must create an incentive structure such that residential, domestic
and agriculture consumer move more toward rooftop PV system ( multi benefit
reduce losses and cross subsidy)

25. Way Forward
• Globally, major PV installations have been on rooftops in countries like Germany, Japan and USA.
Given the global trend, high solar irradiation, growing energy demand & power deficit issue and
abundance of rooftops for SPV systems installation, SPV rooftop system seems a logical alternative
choice to meet India’s energy requirements.
• Solar power has already achieved parity with commercial power tariffs for industrial and
commercial segment in many states in India. However, SPV rooftop installations are at very nascent
stage in India with total installed capacity of 1GW (approx on sep. 2016) as against targeted SPV
rooftop installations of 40 GW by 2022 and hence, capital subsidy alone may not be the solution to
achieve targeted installations but comprehensive solar solutions is the need of the hour.
• Implementation of SPV rooftop systems can be accelerated if solar solutions are easily available and
accessible as a complete package; easy financial assistance is available and there is increasing
awareness amongst consumers about its economic/environmental benefits. Promoting SPV rooftop
for self-consumption could be the most important step towards popularising SPV rooftop. Large
participation across the consumer segment may be achieved through creating awareness about
benefits supported by synchronisation between stake holders i e Government nodal agencies,
consumers and system integrators.
• Furthermore, government policies should also put emphasis on encouraging power generation
through decentralised SPV rooftop systems at the point of consumption rather than only providing
capital subsidy. One of the ways could be through providing generation based incentives for end-
users including the house hold segment which can drive growth of SPV rooftop systems without
putting any additional burden on distribution and transmission infrastructure while at the same
time achieving targets for renewable energy installations.

26. THANK YOU