This blog is in continuation of our previous blog where we have started discussion about all the revolutionary renewable energy policies introduced by MERC in Maharashtra. You can read our previous blog by clicking HERE.

In the previous blog, we have discussed about the following:

• Net-Metering limit increased to 5MW.
• Post ponding Grid-support charges.
• Green open access permissions.

There are a total of 7 changes that we wish to enlighten about. Let us start this journey.

• Group open access permissions:

 

 

In the previous blog, we have discussed about green open access. In Group open access (GOA), a group of consumers can join hands together and can get into Group open access. The main point in this GOA is that all the consumers (forming GOA) should have sanction load / contract demand lower than 100kw.  The aggregate contract demand (or sanction load) of all the consumers under GOA should be more than 100kw or more.

In this group, if any individual consumer has a sanction load / contract demand of more than 100kw, then that individual needs to apply separately under Green open access (as discussed earlier). It is also to be marked that, all the individuals in this GOA should belong to (having their premises in) same circle of DISCOM.

While applying for GOA, the group needs to define the load proportion of all the individuals falling under the group. i.e. consumers need to define the percentage (%) in which they will be using the electricity generated from this GOA. Our of 100% electricity, which consumer will be using what percentage of electricity needs to be defined while applying for GOA.

Now individuals like flat owners, shop keepers etc. who do not have roof space (or do not have sufficient space) can get into this GOA and can take advantage of lower tariff electricity through GOA. The detailed circular for this GOA is yet to be come. We believe that this GOA is going to be a game changer for all the stake holders.

 

• Group Net-Metering

 

 

Net metering has been known to the state since 2015. Net metering is an arrangement where an individual can install solar system within its premises and can generate electricity for its own use. The quantum of electricity generated via this renewable energy solution will be first consumed by the load and excess electricity will be deposited with the DISCOM. This deposited electricity can be utilized by the same individual during the off-peak zone or in the months to come.

Group Net-Metering (GNM) is an extension to the previous net metering. In GNM, if a consumer has multiple facilities (multiple premises), then that consumer can install renewable energy solution in anyone premises (which have ample space) and can take advantage of excess generated electricity in other premises too.

Few conditions for this GNM are as follows:

1. All the premises which need to be covered under this GNM should be under the same circle of DISCOM.
2. The facility (premises) in which this renewable energy solution is being installed will be known as the primary unit. Those facilities (other than primary unit) who will be taking advantage of electricity generated from this GNM will be know as satellite units (or satellite connections)
3. All those facilities which need to be covered under GNM should have same name. Now the clarification is due from MERC that if all the consumers should have same business name or should have same promoters etc.
4. The electricity generated from one premises will be first settled with the load requirement of that premises first (where renewable energy system is installed). For the primary unit, the system will work just like the old net-metering arrangement. Only the excess electricity (unused excess units from primary unit) will be used to settle the load of other premises (satellite connections falling under GNM).
5. Excess electricity from the primary unit will be treated as an “Off-Peak Zone” electricity and can only be settled with “Off-Peak Zone” electricity requirements of satellite connections.

There are lot of clarifications needed on this GNM and we expect that soon, MERC and MSEDCL will provide us with those clarifications.

 

• Introduction to Net-Billing arrangement.

 

 

In the previous circulars, three kinds of arrangements were present in the state of Maharashtra for Roof-top renewable energy system, and those are:

1. Net Metering arrangement.
2. Gross Metering arrangement.

• Behind the Metering arrangement.

This Net-Billing arrangement will be an extension to “Behind the Metering arrangement”. In Net-Billing, if a consumer installs a renewable energy system in its premises, then firstly, the generated electricity will be consumed for the load (just like behind the meter arrangement).

In Net-Billing, excess electricity can be sold to DISCOM (which was not possible under behind the metering arrangement). The DISCOM will purchase excess electricity from the renewable energy solution at a “Generic Tariff” defined every year by the DISCOM.

This is going to be very advantageous for those facilities who are under “Behind the Metering Arrangement”. Now, those consumers will not have to reduce the electricity generation (of renewable energy system) if the load requirement of the premises is lower than the electricity generation. Now, they can sell excess electricity and can take advantage of it.

In this new policy, the net metering limit has already increased to 5MW. But those facilities who have much more load than 5MW will benefit from this policy of Net-Billing amendment.

 

• Refunding the amount for long deposited solar units with Grid.

 

 

It has been observed that many consumers who have installed renewable energy solution in their premises (under net-metering arrangement) are depositing excess electricity with the DISCOM. This may happen if the premises load requirement reduces due to market fluctuations, capacity reduction, wrong assessment of renewable energy requirement etc.

As the excess units are getting deposited regularly, these consumers are not able to take advantage of excess units. Hence, MERC in its new notification has concluded that:

50% of the credit amount shall be paid through electronic transfer to the consumer within 60 days of the end of the third financial year. Similarly, the balance 50% amount shall be credited in the second electricity bill after the end of such third financial year.

MERC has also put a condition that those consumers whose deposited units have continuously increased for the last 3 years will only be able to take advantage of this scheme. Also, if the DISCOM fails to make the said payment to the consumer within 60 days of its due, then the DISCOM will have to pay the penalty of Rs. 500 per day for such a delay.

This refund policy of MERC will benefit those who were deprived of renewable energy benefit.

These are a few of the updates / clarifications given by MERC in its gazette notification of 16^th November 2023. Please let us know what you feel about all these updates. Is any of this update benefits you? Write to us if you need any clarification / suggestion from the expert team of Chirayu Power.

Also let us know if you want our team to provide details on any of the renewable energy policy, its working, about the technology etc. We are looking forward to your positive comments. Let us grow together and make this work, a greener place to live.