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The major challenge is frequent change in rooftop solar policy and regulation by states. In November 2019, Maharashtra Regulator published Draft Regulations in which it proposed to allow net-metering to only for the residential consumer(s) of less than 10kW capacity. In the final regulations published, it reversed its position and allowed net-metering to all categories of consumers but proposed Grid Support Charges (GSC) for such net-metering systems. Such decisions do adversely impact investor sentiments in the rooftop solar sector in the State.
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Challenges And Solutions in India’s Rooftop Solar Policy And Regulation WWW.SUPRABHA.ORG
In the year 2015, India increased its target for renewable energy to 175 GW out of which 40GW was assigned to the Rooftop Solar PV segment. Unfortunately, the rooftop solar sector saw very sluggish growth, with total installations reaching only about 6 GW as of June 2020. WWW.SUPRABHA.ORG
The slow growth in the segment is attributed to various reasons: •Regulatory hurdles •Lack of uniform regulations •Lack of mandatory notifications / state policies •High cost of financing •Reluctance from DISCOMs to provide approvals •Multiple approvals stakeholders •Availability of net meters •No single window clearance, etc. from multiple The major hurdle lies in the variations in model net metering regulation rooftop solar and sometimes between DISCOMs in the same state. WWW.SUPRABHA.ORG
For example, in Uttar Pradesh, regulations allow net metering only for residential consumers and not for commercial & industrial consumers. Maharashtra allows categories of consumers subject to a cap of 1MW. Some states have laid caps on generation from rooftop systems, for example, Rajasthan has put a cap on generation, i.e., 4.8 units per kW and in case of excess generation at the end of the year, only residential consumers are given monetary compensation. net-metering to all WWW.SUPRABHA.ORG
The second major challenge is frequent change in rooftop solar policy and regulation by states. In November 2019, Maharashtra Regulator published Draft Regulations in which it proposed to allow net-metering to only for the residential consumer(s) of less than 10kW capacity. In the final regulations published, it reversed its position and allowed net-metering to all categories of consumers but proposed Grid Support Charges (GSC) for such net-metering systems. Such decisions do adversely impact investor sentiments in the rooftop solar sector in the State. Third major issue is with the definition of third party owned systems. While Gujarat has not allowed third party owned system in its solar policy, Maharashtra has permitted such ownership to only leased systems. A few other states have their own interpretation of third party owned systems. WWW.SUPRABHA.ORG
Such non-uniformities and frequent regulatory changes bring significant uncertainty to the sector thereby hindering the progress of the grid connected rooftop investment into the sector. Uniformity in policy and regulations shall attract more investment and help the country reach the target of 40 GW. solar segment and SUPRABHA TA program worked closely with the Forum of Regulators and supported them to finalize and release the Model Regulations for Grid Interactive Distributed Renewable Energy Sources (GDRES) during April 2019. The TA Program is currently striving to achieve uniform regulations that would help reduce uncertainty in the sector. SUPRABHA is also assisting MNRE in implementing utility driven business models in multiple states. WWW.SUPRABHA.ORG
Contact Us SUPRABHA TA Program EY LLP, WorldMark 1, Aerocity District, New Delhi – 110037, India Phone: +91 11 66718000 Email: info@suprabha.org Website: https://www.suprabha.org/ Follow Us WWW.SUPRABHA.ORG
