AERC Issues Draft Guidelines for Group and Virtual Net Metering of Renewable Energy
Assam Electricity Regulatory Commission has recently issued draft of the guidelines for group and virtual net metering of renewable energy and sought stakeholders’ feedback by October 3, 2024.
September 18, 2024. By Mrinmoy Dey
This initiative is designed to enhance the use of renewable energy systems by allowing multiple service connections to benefit from energy produced by a single solar PV system, potentially reducing electricity costs and promoting cleaner energy sources.
The guidelines will apply to all consumers in Assam, with special provisions for domestic consumers, government bodies, hospitals, schools, and charitable organizations. This framework aims to make renewable energy systems more financially accessible and technically feasible for larger groups and entities.
“The annual generation of Renewable Energy System or Renewable Energy System with Battery Energy Storage System may be capped as per the normative CUF or PLF as decided by the Commission from time to time for the respective Renewable Energy Technology,” noted the guideline.
The local electricity distribution companies (DISCOMs) are responsible for ensuring network augmentation to support these renewable energy projects. The draft noted, “The capacity of the renewable energy system under Group Net Metering or Virtual Net Metering framework to be installed by any renewable energy generator shall not be less than 1 kilo Watt and more than 1 MW.”
As per procedures laid out in the draft guideline, consumers interested in joining the group or virtual net metering programs must submit an application to the local distribution licensee, along with a non-refundable processing fee of INR 1,000. It will be followed by feasibility analysis, registration and connection agreement.
For energy generation systems, the distribution licensee will install meters that enable remote monitoring of renewable energy output.
In the group net metering setup, any surplus energy produced will be offset against the consumer's energy use, based on a priority list specified by the consumer. This priority list can be updated once a year.
However, in case of virtual net metering, energy credits will be distributed among the participating consumers according to a pre-agreed ratio, with the option to adjust these ratios once per financial year.
The draft further clarified that renewable energy systems installed by March 31, 2024, will be exempt from charges such as wheeling, banking, and cross-subsidies throughout their operational lifespan.
“The quantum of electricity generated under AERC Grid Interactive Rooftop Solar PV System Regulations, 2019 shall qualify towards compliance of Renewable Purchase Obligation (RPO) for the distribution licensee if Renewable Energy Generator is not an obligated entity,” noted the draft.
The draft further mentioned that the tariff at the end of financial year for surplus energy shall be the average power purchase cost (APPC) rate determined in the Tariff order of APDCL.
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