Gujarat Electricity Regulatory Commission’s (GERC) Draft Regulations for Net Metering: A Detailed Analysis of the Fourth Amendment (2024)

Introduction:

The Gujarat Electricity Regulatory Commission (GERC) has taken a significant step towards promoting solar energy adoption with the release of its draft regulations for the fourth amendment (2024) on net metering for rooftop solar photovoltaic (PV) grid interactive systems.[1] This amendment introduces a comprehensive set of changes aimed at streamlining the installation process, clarifying cost responsibilities, and expediting project timelines. By addressing key challenges and simplifying procedures, the GERC aims to create a more favourable environment for the widespread adoption of rooftop solar in the state.

Explanation:

• Revised System Strengthening Charges:

A central focus of the amendment is the revision of system strengthening charges. The GERC recognizes the importance of a robust distribution infrastructure to accommodate the growing number of rooftop solar installations. To this end, the draft regulations stipulate that the distribution licensee (DISCOM) will bear the costs of upgrading distribution infrastructure for rooftop solar systems up to 6 kW. This is a significant move that could incentivize smaller installations by reducing the financial burden on consumers.

For systems exceeding 6 kW, the responsibility for system strengthening charges shifts to the consumer. The charges will be calculated based on per kW rates for new/additional loads at low tension (LT) for state-owned DISCOMs and Torrent Power Limited. This ensures a fair distribution of costs, where consumers with larger installations contribute to the necessary infrastructure upgrades.

• Streamlined Timelines for Project Implementation:

The amendment introduces a detailed timeline for various activities involved in the installation of rooftop solar systems. These timelines cover registration, approvals, technical feasibility reports, connectivity agreements, system strengthening, and commissioning. By setting clear deadlines for each step, the GERC aims to expedite the overall project implementation process and reduce delays.

For instance, the DISCOM is required to issue a technical feasibility report within 10 days of receiving a letter from the head office. Similarly, the consumer must complete the project work within six months of signing the connectivity agreement. These timelines bring clarity and predictability to the process, benefiting both consumers and DISCOMs.

• Simplified Process for Smaller Rooftop Solar Systems:

Recognizing the potential of smaller rooftop solar systems, the amendment simplifies the installation process for systems up to 10 kW. These systems will be deemed accepted without the need for a technical feasibility study. Additionally, any necessary load enhancement will be carried out by the DISCOM, further reducing the burden on consumers.

This simplification is expected to encourage the adoption of rooftop solar among residential and small commercial consumers, who may have been deterred by the complexities and costs associated with larger installations.

• Additional Amendments and Clarifications:

The draft regulations also include several other amendments and clarifications. The connectivity agreement has been revised to align with the new system strengthening charges. The DISCOM is mandated to provide information on available transformer capacity to facilitate informed decision-making by consumers. Additionally, the GERC has clarified the process for obtaining commissioning certificates from the Gujarat Energy Development Agency (GEDA).

Conclusion:

The GERC’s draft regulations for the fourth amendment on net metering demonstrate a clear commitment to advancing solar energy adoption in Gujarat. By addressing financial concerns, streamlining processes, and simplifying procedures, the amendment aims to make rooftop solar more accessible and attractive to a wider range of consumers. The revised regulations are expected to stimulate investment in rooftop solar, contribute to the state’s renewable energy targets, and reduce reliance on conventional power sources.

[1] https://gercin.org/wp-content/uploads/2024/05/FINAL-Draft-on-GERC-Net-Metering-Rooftop-Solar-PV-Grid-Interactive-Systems-Fourth-Amendment-Regulations-2024.pdf