NET METERING

Net Metering in Uttar Pradesh – Consumer Guide

Introduction

The power tariffs in Uttar Pradesh (UP) are much higher when compared to the India average. In order to promote the use of rooftop solar systems by energy consumers, the state of Uttar Pradesh announced a friendly Solar Net-Metering policy in March 2015. Under this policy, grid-connected solar PV systems are eligible for solar net-metering or gross-metering.

When you install a solar system, it generates power everyday. Solar net-metering is useful for consumers whose energy consumption on certain days in a week or certain months in a year is nil or quite low as compared to other week days or months, respectively. The solar energy generated during these days is net-metered or exported to the grid/ DISCOM and therefore, the consumer gets the full benefit of the entire power generated from his solar PV system.

How Solar Net-Metering works?

In grid-connected Solar PV systems, the DC output generated by the solar panels is converted into AC (alternating current) output by a solar inverter. This output, from the solar inverter, called solar energy, is connected to the distribution board or switch board of the building or the home and is then consumed by the electrical appliances. If the solar energy produced is more than what the connected loads in the building or home consume, the surplus solar energy is automatically exported (energy export) to the DISCOM’s distribution network (the grid) with the help of a two-way meter. If the solar energy produced is less than the total energy required in the building, then the shortfall energy is automatically supplied by the grid (energy import).

Electricity Bill with Solar net-metering

Electricity Bill with Solar net-metering

Under solar net-metering in Uttar Pradesh, the consumer only pays for the difference in energy imported and the energy exported.

Illustration: If a Consumer in Noida imports 1000 kWh in June billing period and exports 600 kWh in the same period, the Consumer will be charged for only 400kWh. If the import energy in the month of July is 500 kWh and the export again is 600kWh, then the excess 100kWh will be carried over to the next month’s bill or next billing cycle and adjusted there. At the end of the settlement period (usually a 12 month period), any balance and unadjusted carried forward excess export will be paid to the Consumer at a pre-defined tariff (rate/kWh), which will be notified from time to time by the relevant authorities.

Illustration

A case for a Noida-based residential consumer who has almost negligible daytime electricity consumption on weekdays and has a monthly electricity bill of Rs 10,000 sets up a 10kW Solar PV system

(A) Monthly Energy consumption (Import from Grid) 1,441 units (kWh)
(B) Monthly Solar energy generation(Solar energy consumed by consumer) 364 units
(D) Balance solar energy (Exported to Grid) 910 units (1,274 – 364)
(E) New Monthly import from grid 1,077 units (1,441 – 364)

As the net import export, the net billable units = 167 (1,441 - 364 - 910) leading to a reduced monthly energy bill of Rs. 1,776, which is a saving of Rs. 8,224 per month.

Had export been greater than the import, the difference would have been carried forward to the next billing cycle. Any unadjusted units are paid only at the end of the settlement period at a predefined rate, which currently is Rs. 0.50 for Noida.

Category Existing Electricity Connection With Solar Net Metering
Monthly Import from grid (units or kWh) 1,441 1,077
Net billable units 1,441 167
Grid Electricity Bill (Rs) 10,000 776

Who can benefit from Net-Metering?

The solar net-metering policy benefits in UP are available to individual or residential energy consumers, to industries or commercial establishments or to the government owned buildings. Whether you are in Noida/ Greater Noida, Lucknow, Meerut, Kanpur, Allahabad, Ghaziabad, Kanpur or any other city/ town in Uttar Pradesh (UP) you can avail the benefit of Net-Metering. Also, private DISCOMs like Noida Power Company Limited (NPCL) and public sector utility companies like Purvanchal Vidyut Vitran Nigam Limited (PuVVNL), Pashchimanchal Vidyut Vitran Nigam Limited (PVVNL), Dakshinanchal Vidyut Vitran Nigam Limited (DVVNL), Madhyanchal Vidyut Vitran Nigam Limited (PuVVNL) and Kanpur Electricity Supply Company Limited (KESCO) are all required to support and implement net-metering in UP.

Net-metering/ Gross-metering Highlights in UP

Item Policy Remarks
Net metering or Gross metering Both Both Net metering & Gross metering policies are applicable, however only one can be availed
Adjustment at the end of settlement period for any unadjusted units As notified by State Regulatory Commission Tariff notified by the State Regulatory Commission shall be applicable
Applicable tariff for unadjusted units(Rs./kWh) 0.5 Tariff notified by the State Regulatory Commission shall be applicable
Solar System size (kW) Min 1 kWp; Max 1000 kWp
Max Solar System size based on sanctioned load (kW) =100% Sanctioned load 5kW, then max Solar System size 5kW
Discom cumulative capacity of local Distribution Transformer Max 15%
Capping of Solar generation Not applicable Not applicable
Settlement period Yearly Yearly

How to apply for Net-Metering?

  • The eligible consumer who intends to install grid interactive rooftop solar PV system shall make an application to the DISCOM alongwith the application fees.
  • DISCOM shall complete the feasibility analysis for connecting the rooftop solar PV system to the distribution network within 30 (thirty) days from the date of submission of the application.
  • While intimating the feasibility of the connection, the Distribution Licensee (DISCOM) shall also inform the consumer about any additional documents or deficiencies, if any.
  • Upon the receipt of the additional documents and the removal of deficiencies, if any, the DISCOM shall accord its approval within 10 (ten) days from the date of such receipt. Upon the receipt of approval, the consumer shall apply for registration by completing the registration form.
  • DISCOM shall within 15 (Fifteen) days from the receipt of the completed registration form shall register the scheme and assign a registration number, in case the form has no deficiencies.
  • Within 30 days of the issue of the registration number, the DISCOM and the consumer must execute the inter-connection agreement.

What are the Fees involved in application for Net-Metering in UP?

APPLICATION FEES

Sr No. Connected Load / Contract Demand of Eligible Consumer Amount
1 Up to 50 kW / 63 kVA Rs 250
2 Above 50 kW and up to 1 MW Rs 750

The amount of application fee for eligible consumer and third party other than the owner of the premises shall be the amount mentioned above.

REGISTRATION FEES

Sr No. Connected Load / Contract Demand of Eligible Consumer Amount
1 Up to 50 kW / 63 kVA Rs 1000
2 Above 50 kW and up to 1 MW Rs 2500

The amount of registration fee for eligible consumer and third party other than the owner of the premises shall be the amount mentioned above.

View the Uttar Pradesh (UP) Net Metering Policy here

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