Draft Regulations for Rooftop Solar Systems in West Bengal: Empowering Consumers and Ensuring Grid Stability with 5 kW Capacity Limit

Introduction

The West Bengal Electricity Regulatory Commission (WBERC) has released the draft regulations for “Grid Interactive Rooftop Solar PV System for Prosumers” in 2024, aligning with national renewable energy goals and consumer rights.[1] The proposed regulations are, as they empower consumers to become prosumers, enabling them to produce and consume solar energy while contributing to grid stability. These regulations, driven by the Electricity Act and the Electricity (Rights of Consumers) Rules, 2020, aim to facilitate the integration of rooftop solar systems while ensuring an optimal balance between consumer benefits and distribution licensee interests. A central feature of the regulations is the capacity limit, where prosumers with systems up to 5 kW will enjoy streamlined procedures and consumer rights.

Explanation

Empowering Consumers as Prosumers

One of the key principles behind the draft regulations is recognizing consumers as “prosumers”—those who both consume and produce electricity using grid-connected rooftop solar systems. The proposed rules stipulate that prosumers can inject surplus energy into the grid through metering arrangements like net metering, net billing, or gross metering. This framework empowers consumers by giving them the right to generate renewable energy on their premises, transforming traditional consumers into active participants in energy generation. Prosumers maintain their consumer rights and obligations and have full flexibility to set up rooftop solar systems either by themselves or through service providers.

Metering Mechanisms for Flexibility

The draft regulations outline three metering mechanisms to cater to different consumer needs:

1. Net Metering: Here, the energy exported to the grid is offset against energy consumed from the grid. If a prosumer exports more than they consume, the excess is carried over to future billing cycles.
2. Net Billing: Under this arrangement, the monetary value of energy exported is adjusted against the value of energy consumed. If the exported energy has greater value than consumed, the difference is carried forward in monetary terms.
3. Gross Metering: Prosumers are credited for all the solar energy they generate and export to the grid, with two separate meters tracking the energy generated and consumed.

Each method provides a tailored solution depending on the prosumer’s energy usage and the distribution licensee’s operational requirements. This flexible approach ensures transparency and promotes optimal energy consumption.

Eligibility Criteria for Rooftop Solar Systems

The regulations specify eligibility criteria for net metering, net billing, and gross metering systems. Prosumers with contract demands or sanctioned loads of 1 kW and above can install rooftop solar systems between 1 kW and 500 kW, or up to the limit of their sanctioned load. A capacity limit of 5 kW for streamlined approvals is particularly important, as it aims to simplify the technical feasibility study process for smaller installations, ensuring ease of access to the benefits of rooftop solar.

Feed-In Tariff for Surplus Energy

In net billing and gross metering setups, surplus energy exported to the grid is compensated through a “feed-in tariff” determined by the WBERC. The draft proposes that feed-in tariffs be based on the distribution licensee’s average power purchase cost (PPC) plus savings from avoided transmission and distribution losses. This calculation ensures that both consumers and distribution licensees benefit financially from rooftop solar installations, making it a mutually advantageous arrangement.

For instance, the feed-in tariff for 2024-25 is proposed to be Rs. 3.91/kWh at the Extra High Voltage (EHV) level, Rs. 4.07/kWh at the High Voltage (HV) level, and Rs. 4.62/kWh at the Low Voltage (LV) level. These rates encourage consumers to invest in rooftop solar while also enabling distribution licensees to meet their Renewable Purchase Obligation (RPO).

Grid Connectivity and Stability

The regulations emphasize the importance of grid stability while promoting rooftop solar installations. To ensure this balance, the draft provides guidelines for seamless grid connectivity and proper metering arrangements. Prosumers seeking rooftop solar installations up to 10 kW are entitled to connection approvals without requiring technical feasibility studies, thus encouraging small-scale solar adoption. Distribution licensees are also required to maintain transparency in billing, ensuring consumers can clearly see their energy consumption, export, and any associated charges such as meter rent and electricity duty.

Renewable Purchase Obligation (RPO) Fulfillment

An essential aspect of the draft regulations is their contribution to the state’s Renewable Purchase Obligation (RPO) compliance. Both consumers and distribution licensees benefit from rooftop solar energy in this regard. Prosumers can meet their RPO by consuming energy generated from their systems, while surplus energy purchased by the distribution licensees counts toward the licensee’s RPO fulfillment.

Conclusion

The draft WBERC (Grid Interactive Rooftop Solar PV System for Prosumers) Regulations, 2024, mark a progressive step towards integrating rooftop solar energy in West Bengal, offering substantial benefits to both consumers and distribution licensees. By allowing flexible metering options, fair feed-in tariffs, and simplifying the installation process for systems up to 5 kW, these regulations empower consumers to become energy producers while ensuring grid stability. Through clear eligibility criteria, a consumer-friendly approach to grid connectivity, and the promotion of renewable energy, the WBERC is aligning state regulations with national renewable energy goals, ensuring a cleaner and more sustainable future for all stakeholders.

[1] https://wberc.gov.in/sites/default/files/DraftWBERCGridInteractiveRooftopSolarPVSystemForProsumersRegulations2024.pdf