IST-Magazine Net Metering -> Scope & Challenges
| Booming Solar Energy Market in INDIA |
IST E-Magazine | December, 2016
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Net metering concept promises an environment friendly and power efficient electricity evaluation system. It provides an easy option to produce electricity from renewable and also to get connected to the grid at the same time.
In India the allotted transformer capacity for grid-connected solar power plants is between 15 per cent and 30 per cent. Maharashtra as an exception has 40 per cent allotted transformer capacity for solar. The payback period largely depends on the tariff of the particular state. The higher the grid tariff, the lower is payback period.
Also, the question is about how much of your consumption can be offset using solar and how much you are allowed to install. So if you have been thinking that you will install only solar and not consume from the grid at all, that is dependent on your state’s regulations. The allotted transformer capacity is filled on a first-come first-serve basis. So if you are looking to benefit from rooftop solar for reducing your bill, you might want to consider doing this soon. Once the allotted transformer capacity is saturated, you may not be able to connect your system to the grid for a while.
There are two main reasons for the disappointing adoption of net-metering by the consumers: the tariff structure (a policy matter) and grid-reliability (a technical concern). The key requirements for any energy source to connect to the grid is the availability of “anti-islanding protection”. Anti-islanding protection is a way for the inverter to shut itself off and stop feeding power into the grid, when it senses a problem with the power grid, such as a power outage. Both issues are relevant for the residential, commercial and industrial segments.
In India netmetering can have a great future. But since the mechanism is new, we are hitting and identifying the hurdles that are operational, financial and regulatory related. While some countries have provisions of monetary payment for energy fed into the grid, the same cannot be implemented across India. The reason being electricity is a concurrent subject between central and state governments and so we have variation in policies from state to state. But the most important reason is that the financial condition of distribution companies of India is very fragile. A few states are exceptions where these companies are doing really well. Some of them pay for energy fed at Average Power Purchase Cost (APPC) rather than the retail tariff.
This makes sense as rooftop net-metering systems are connected with distribution systems, which eliminates transmission costs and losses. Distribution losses are also reduced and so does the APPC of DISCOMS. While utility scale solar projects are competing really well against utilities, the rooftop segment has been lagging.
What becomes of the latter depends on what actions are taken to address the issues in the present.
Net Metering Impact Customer Bills:
Customer electric bills are based on the electric utility’s cost of providing electric service. In general, every electric customer has an electric meter that records the amount of power delivered by their electric utility. The meter records energy use in kilowatt-hours (kWh). Net-metered customers generally are credited for the electricity they sell to the grid, with their electric meter essentially spinning backwards to provide a credit against the electricity that these customers must buy from their electric utility at night or during other periods when their electricity use exceeds their system’s output. Customers are only billed for their “net” energy use. That means that when rooftop solar or other DG customers generate electricity, they avoid paying for the utility’s power, which is fair because they did not use it. But, they also avoid paying for all of the fixed costs of the grid that delivers power when they need it and/or takes the excess power they sell back to the utility.
Hurdles To Overcome For Net Metering:
Roof top is more expensive than large grid connected power.
Consumer pay for electricity depending on the usage. Even the highest tariff slabs do not cost as much as small scale PV generation.
Improper net metering infrastructure.
Not enough net metering manufacturers.
No performance Guarantee.
Unskilled man power for fixing and maintenance.
Grid compatibility.
Lack of proper monitoring may occur.
Many paper work issues.
Taking money from the govt has always been a problem (if we provide excess power to the grid).
Implementation of this facility will be as per the following guidelines:
Under this facility, consumer will generate solar power for self consumption and feed excess power into the grid.
Net metering is the concept which records net energy between export of generated energy and import of DISCOM energy for a billing month. Alternatively, the meter, having the feature of recording both the import and export values, besides other parameters notified by CEA metering regulations and APTRANSCO /DISCOM procedures in vogue, shall also be allowed for arriving net energy for the billing period.
The net metering facility shall be allowed only for 3 Phase service consumers. Single Phase consumers are not eligible for net metering to avoid imbalance in the phases.
The SPV generator shall pay for the net energy in a billing month as per applicable retail supply tariff decided by regulatory commission to the concerned DISCOM, if the supplied energy by the licensee is more than the injected energy by the solar PV sources of the consumer(s). Any excess/ surplus energy injected in to the grid in a billing month will be treated as inadvertent and no payment will be paid for such energy.
The SPV generator is required to provide an appropriate protection system on their incoming side/ consumer premises with the feature of “Islanding the SPV generator” when grid fails.
The SPV generator shall bear the entire cost of metering arrangement provided including its accessories. The installation of meters including CTs & PTs, wherever applicable, shall be carried out as per the departmental procedures in vogue with prior permission of DISCOMs.
The Solar PV panels proposed to be installed shall meet the requirements of Indian as well as IEC standards.
One can avail any prevalent subsidy offered by Government of India in this regard.
Thus consumers are seeking better incentives and a resolution of technical obstacles before they invest in residential solar PV systems. Policy makers, meanwhile, are coming up with multiple mechanisms to incentivize net-metering adoption from both sides to help distribution companies to improve their financial health and to enable a reliable energy supply. Thus Net-Metering policy has to be implemented systematically and this concept has to get reach to every consumer whatsoever the capacity of plant is.
Reference:
http://www.eai.in/club/users/aathmika/blogs/23849
http://www.bridgetoindia.com/netmeteringisessentialforindiabuthereiswhyitsfailingi/
http://www.eei.org/issuesandpolicy/generation/NetMetering/Docume
https://Straight%20Talk%20About%20Net%20Metering.pdf
