MERC Proposes 2024 Draft Second Amendment Regulation For Grid Interactive Rooftop Renewable Energy Systems – SolarQuarter

In Maharashtra, a significant step towards sustainable energy use is underway with a draft amendment to existing guidelines concerning Grid Interactive Rooftop Renewable Energy Systems. This second amendment enables both individual and collective setups of renewable energy systems, such as solar panels, within the same electrical distribution area, thereby enhancing accessibility and utility.

Under the revised provisions, any residential consumer can install a renewable energy system anywhere within their distribution licensees area. This flexibility allows for the generation of renewable energy through arrangements like virtual net metering. Virtual net metering is particularly innovative as it permits the energy produced by a renewable system to be shared amongst multiple consumers. For instance, members of a housing society can collectively install and benefit from a single renewable energy system. The total capacity of this system is merely the sum of what each participating consumer is eligible for, ensuring fair and equitable distribution and usage.

Moreover, these updates streamline the technical and bureaucratic processes associated with setting up new systems. Any residential installation up to 10 kW no longer requires a technical feasibility study, thus speeding up approval times. For larger setups, the rules specify a timeline for completing feasibility studies, emphasizing efficiency and responsiveness from the distribution licensees.

For energy accounting, the revisions detail a clear methodology. The energy produced is first used to offset consumption in corresponding time blocks within the billing cycle. Surplus energy is treated differently depending on the consumers time-of-day usage pattern, ensuring that credits are calculated fairly. At the end of the financial year, any unadjusted credits are handled according to specific guidelines provided, maintaining transparency and accountability in energy billing.

These modifications not only facilitate the adoption of green energy but also reflect a regulatory environment that supports innovation and consumer choice in energy sources. The updates anticipate future growth in the sector and aim to build an infrastructure that supports up to 5,000 MW of rooftop solar installations, marking a significant commitment to renewable energy in Maharashtra.

The Maharashtra Electricity Regulatory Commission (MERC) has introduced these regulations under the powers conferred by Section 61 and Section 86(3) read with Section 181 of the Electricity Act, 2003 (36 of 2003). Additionally, these regulations align with Clause 5.3 of the Tariff Policy, 2016, and other enabling powers. After previous publication, MERC has enacted the Maharashtra Electricity Regulatory Commission (Grid Interactive Rooftop Renewable Energy Generating Systems) (Second Amendment) Regulations, 2024, which amend the Principal Regulations set in 2019 and the First Amendment in 2023.

One of the significant suggestions provided in these amendments is the emphasis on virtual net metering. This system is advantageous for residential consumers who may not have adequate space for individual installations. By allowing multiple residential consumers, including housing societies, to set up a common renewable energy system, the regulations promote collective energy generation and consumption. This ensures that renewable energy benefits are more widely distributed and accessible.

Another key suggestion is to simplify the process for residential installations up to 10 kW. By removing the requirement for a technical feasibility study for smaller installations, the amendments aim to reduce the administrative burden and accelerate the adoption of rooftop solar systems. This change is expected to encourage more residential consumers to invest in renewable energy, contributing to the overall sustainability goals of the state.

Furthermore, the amendments include clear and detailed guidelines for energy accounting. The approach ensures that energy production and consumption are accurately recorded, and surplus energy is credited appropriately. This transparency is crucial for building consumer trust and promoting the widespread adoption of renewable energy systems.

Overall, these regulatory updates reflect a proactive approach by the Maharashtra Electricity Regulatory Commission to support and expand the use of renewable energy. By addressing technical, administrative, and financial aspects, the amendments aim to create a conducive environment for the growth of the renewable energy sector in Maharashtra. The states commitment to increasing its rooftop solar capacity to 5,000 MW highlights its dedication to sustainable energy and reducing its carbon footprint.

Please view the document below for more details.

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MERC Proposes 2024 Draft Second Amendment Regulation For Grid Interactive Rooftop Renewable Energy Systems - SolarQuarter