MERC (Maharashtra Electricity Regulatory Commission) has given the best Diwali gift to the complete solar fraternity. Long waited solar policies are being cleared with swag.
On 16th December 2023, in its Gazette notification, MERC has given a green signal to its futuristic solar policies. The pointers of the policy are as follows:
- Net-Metering limit increased to 5MW.
- Postponing Grid-support charges.
- Green open access permissions.
- Group open access permissions.
- Group Net-Metering.
- Introduction to Net-Billing arrangement.
- Refunding the amount for long deposited solar units with Grid.
With these 7 policies, MERC has given a pleasant shock to all the renewable energy stake holders. We at Chirayu Power has analyzed the complete policy and are happy to give you brief information about the updates. Let us discuss all the policy updates point by point and in a simple, understandable manner.
- Net-Metering limit increased to 5MW.
As per the previous policies, maximum capacity of 1MW of solar rooftop was permissible under Net-Metering arrangement. Even if an industry or a facility has available space and a requirement of more power, the policy has restricted them with the maximum capacity of 1MW.
Since many years, we are being requesting MERC to enhance the limit of net metering. With the new policy, MERC has increased this limit to 5MW. i.e., Any facility which has ample space available on the rooftop (or ground or in the vicinity), can go for solar system of up to 5MW under new solar policy.
It has also been cleared by the MERC that the AC capacity of the solar system will be considered for giving permissions. Let us understand this with an example. If a facility wants to install a solar panel of 2400kw with solar inverters of 2000kw, then the solar capacity (as per MERC policy) will be 2000kw (2MW). Hence, that individual need to take permissions for 2000kw only and not for 2400kw. With the increased limit of 5MW, facilities can install solar panels of 5500/5600kw with AC capacity (solar inverters) of 5000kw (5MW).
This is very positive news for the state of Maharashtra as getting cost-effective power in bulk will be possible. As we know, the Levelized-Cost-of-Electricity (LCOE / Landed cost of power) generated from solar system is less than Rs. 2/unit (as compared to the grid power of Rs. 8 to 18 Rs/unit), multiple industries will be able to reduce their fix expense by installing solar power plant for their captive use.
- Postponing Grid-support charges.
In the notification issued by MERC in 2020, a scary charge, known as Grid Support Charge was introduced. In the said policy, it was stated that, When the solar rooftop systems in Maharashtra (aggregate capacity) reaches the threshold of 2000MW, this Grid-Support-Charges (GSC) will be discussed and will be applied. The total installed capacity in the state is about to reach the threshold and hence, the complete solar fraternity was talking about Grid Support Charges.
MERC had said that the charges would be in the range of Rs 1 to Rs 4 per unit which could have dampened the spirit of renewable energy. With the new policy, this GCS are postponed till the state reaches the installed rooftop capacity of 5000MW.
All the stake holders cheered this positive policy update from MERC. Now the state can rapidly grow its renewable power without the worry of GSC.
- Green open access permissions.
Open access is an arrangement, where a consumer can set up a solar power plant at any location in the state, give the generated electricity (from power plant) to MSEB (Maharashtra DISCOM) and can get into a PPA (Power purchase agreement) saying: the quantum of energy given from the power plant should be settled from the electricity consumed at the consumers premises.
There are many conditions for such open access working. As per the Solar open access policy of 2016 (amended in 2019), Open access can only be applied by consumers having contract demand (from DISCOM) of more than 1MVA. i.e., Only the consumers having huge load can take advantage of this policy.
With the new amendment, MERC has opened the doors of open access for the majority of consumers. It is stated that, if a consumer has a contract demand (or sanction load) of more than 100kw, then the consumer can opt for open access facility. This is something which has been waited by many consumers in the state.
Now all the facilities which have limited rooftop state, can get cost-effective power through this open access policy. Few of the examples would be Malls, Skyscrapers, Hospitals, Theaters, Offices etc. All the premises which cannot install rooftop system due to dusty or acidic environment or due to any such conditions, can now go for this Green open access. Few of the examples would be cement industries, Metal industry, Daal industry, Powder industry, Ginnings, Explosive manufacturer etc.
Chirayu power appreciates MERC’s bold and helpful step. We expect to see more green energy solutions in the state.
Be connected for our 2nd blog in this series where we will discuss group open access, group net-metering, net-billing and all such positive policy updates.
One thing is clear, though the Indian Cricket Team has lost the 2023 World-Cup, MERC has still decided to play on front foot and to make Maharashtra “Electrically Self-Sufficient”.
For any update, clarification, suggestion, do write to us and we would love to discuss.
