GERC Announces New Rooftop Solar Guidelines

The Gujarat Electricity Regulatory Commission (GERC) has recently amended its regulations concerning rooftop solar PV systems. This update is a part of its effort to align State regulations with the Electricity (Rights of Consumers) Amendment Rules, 2024, issued by the Ministry of Power (MoP).

The amendments aim to streamline the rooftop solar installation process, clarify financial responsibilities, and ensure consistency with national regulations while addressing stakeholder concerns raised during the public hearing held on June 6, 2024 on the Draft GERC (Net Metering Rooftop Solar PV Grid Interactive Systems) (Fourth Amendment) Regulations, 2024.

Stakeholders voiced concerns regarding the cost implications for rooftop solar systems. Some argued that the system strengthening charges for capacities exceeding 6 kW should be reconsidered. A representative from the solar industry commented, “The current provisions could place a financial burden on consumers with systems larger than 6 kW, which might discourage adoption.” Additionally, stakeholders sought clarity on the technical feasibility requirements, especially for systems up to 10 kW. They suggested aligning the regulations with the simplified procedures under the PM Surya Ghar Muft Bijli Yojana, which only requires submission of an installation certificate.

Considering stakeholders' views, the Commission finalised regulations stating that under the new guidelines, rooftop solar projects with capacities up to 6 kW will not incur additional system strengthening charges, as these costs will be covered by the distribution licensee. The Commission states, “The system strengthening charges incurred by the licensee shall be included in the Annual Revenue Requirement (ARR) of such licensees for rooftop systems up to 6 kW.” This provision ensures that consumers with smaller installations are not burdened with extra costs for network upgrades.

For systems exceeding 6 kW, consumers will be required to bear the cost of any necessary system strengthening. The Commission affirmed, “LT/HT (low tension/high tension) consumers are liable to pay the system strengthening charges for aggregate solar rooftop project capacity above 6 kW as per the provisions made in these Regulations.”

Regarding the procedural timelines, the Commission clarified that while the time limits specified in the new regulations differ from the GERC Standard of Performance Regulations, they align with the Ministry of Power’s rules. The Commission pointed out, “The time limit specified in these Regulations is with consideration of aligning the time limit specified in MoP Rules for carrying out various activities by distribution licensee for granting approval for connectivity of the Rooftop Project.”

Dwelling on the issue of technical feasibility for smaller systems, the Commission confirmed that systems up to 10 kW will not require a technical feasibility study. The draft stated, “Technical feasibility is not required in case of Solar Rooftop projects capacity up to 10 kW." 

It may be said that the Commission's decisions aim to balance consumer protection with practical implementation, promoting the adoption of rooftop solar systems while ensuring clear cost responsibilities and streamlined procedures.