KERC Issues New Order on Net Metering for Solar Rooftop PV Systems

In a recent directive issued by the Karnataka Electricity Regulatory Commission (KERC),  recently, the Commission has mandated compliance regarding net metering arrangements for Solar Rooftop Photovoltaic (SRTPV) plants. This decision addresses discrepancies resulting from a circular issued by BESCOM, which contradicted the Commission’s earlier order dated July 18, 2022.

The KERC’s latest order, said, "In the Order dated 18.07.2022, it was ordered that the net metering facility for SRTPV (Solar Rooftop Photovoltaic) plants would not be available to consumers who are using power from other sources or captive sources through an open access mechanism. Such consumers have the option to choose between gross metering arrangements or setting up a captive plant for self-consumption."

The order further clarifies that existing Power Purchase Agreements (PPAs) should not be altered without adhering to the agreement's stipulated terms and conditions.

To ensure adherence, the KERC order stipulates that if an SRTPV consumer transitions from net metering to gross metering, the ESCOM (Electricity Supply Company) must formalise this change through a Supplemental Power Purchase Agreement (SPPA). This agreement will govern the billing procedures for the new arrangement.

Under this agreement, ESCOMs are required to issue monthly bills for the gross energy exported to the grid and to make payments based on the agreed tariff within 30 days of billing. Additionally, the energy imported during the billing period will be billed at the retail tariff, and the payment for the gross energy exported will be adjusted accordingly. If ESCOMs delay payments beyond the 30-day period, they must also pay interest as specified in the agreement.

For those consumers choosing to set up a captive plant, the existing net metering PPA will be terminated. The Commission has emphasised that any deviations from this order will lead to accountability for the relevant officers, with possible actions taken under the provisions of the Electricity Act of 2003.