MP to opt for net metering to encourage solar power use

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BHOPAL: Madhya Pradesh will soon have net metering facility to facilitate sale of solar power produced from rooftops by individual producers. Having taken big strides in green energy field, MP will join the few states in country to have this facility.

Presently Tamil Nadu, West Bengal, Karnataka, Andhra Pradesh, Rajasthan, Punjab and Uttarakhand have adopted net metering.

It is a process through which non-conventional energy generated by individuals in their buildings is first used in the building as per requirement and surplus power is fed into the grid. Consumer gets paid back in terms of energy credits and adjustments in his bill against power transferred to the grid.

This will be hugely lucrative for industries and all commercial consumers as the cost per unit power would be Rs 6.5 only for next 25 years, while average cost of conventional power for same period would be around Rs 9.74/unit, if average annual increase of 3% in power tariff is considered.

Madhya Pradesh Electricity Regulatory Commission (MPERC) has prepared a draft policy on the issue and forwarded it to law department for approval.
“Once we get law department nod it will be notified,” secretary MPERC, Shailendra Saxena told TOI.

As per draft policy, consumers who install rooftop solar power panel could transfer additional or surplus power to the grid which will be adjusted with the bill of consumer.

“Suppose a consumer has a monthly consumption of 1000 units of power and is producing 25% of this from solar power panels installed on his rooftops, then his electricity bill will automatically come down to 750 units. Besides, there would be certain occasions like, in case of commercial establishments, if there is a holiday, power will be produced but not consumed, in that case it will be transferred to the grid,” principal secretary new and renewable energy, Manu Shrivastava said.

Explaining further Shrivastava said, “Now, if this consumer injects 150 units of power in a month into the system due to above mentioned reasons. His power bill will depict a consumption of 750 units but the 150 units injected into grid will be deducted making his overall bill at 600 units”.

Two meters will be installed one will be generation meter and the other would be a bidirectional meter on the connections of the eligible consumers who will install rooftop solar panels.

Consumer will have to pay for only the energy consumed by him, minus the energy transferred by him into the system. These adjustments would be made during a settlement period which would be 12 months, said sources.

“We are hopeful that within a month’s time the policy will be approved and will be notified. In the meantime we have also written to all government departments to go for rooftop installations as they are also commercial premises and they will be able to save a lot of money from net metering,” Shrivastava said.

Source: Economic Times

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