Applicability of central financial assistance under Rooftop Solar Programme Ph-II for virtual net-metering projects
The Ministry of New and Renewable Energy (MNRE) recently issued a clarification regarding the applicability of central financial assistance under the Rooftop Solar Programme Phase-II for virtual net-metering projects. This clarification is a much-needed step in promoting the use of solar energy in India and is expected to benefit many individuals and businesses.
Before delving into the details of the clarification, let’s first understand what virtual net-metering is. Virtual net-metering is a system that allows multiple consumers to share the benefits of a single solar power system. It is commonly used in situations where the solar power system is installed on a building that has multiple occupants, such as an apartment complex, and the occupants wish to share the benefits of the system.
Under the Rooftop Solar Programme Phase-II, the central government provides financial assistance to individuals and businesses for the installation of rooftop solar power systems. However, until recently, it was unclear whether virtual net-metering projects were eligible for this financial assistance.
The recent clarification from the MNRE makes it clear that virtual net-metering projects are indeed eligible for central financial assistance under the Rooftop Solar Programme Phase-II. This clarification is expected to encourage the adoption of virtual net-metering projects, which can help reduce the cost of solar power systems and increase their utilization.
The clarification is especially important for residential and commercial buildings that have limited rooftop space. In such cases, virtual net-metering allows multiple occupants to benefit from a single solar power system, making it an economically viable solution for everyone involved.
It is worth noting that the clarification applies only to virtual net-metering projects that are implemented through a distribution company (DISCOM) or an energy service company (ESCO). It is also applicable only to projects that are installed on buildings owned by the central government, state governments, public sector undertakings, or other government organizations.
Overall, the recent clarification from the MNRE is a positive step in promoting the use of solar energy in India. By making central financial assistance available for virtual net-metering projects, the government is encouraging the adoption of this innovative system, which can benefit a wide range of individuals and businesses. It is hoped that this clarification will help to increase the utilization of solar power in India and contribute to the country’s efforts to reduce its carbon footprint.