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The Maharashtra Electricity Regulatory Commission (MERC) recently issued the Second Amendment to its Grid Interactive Rooftop Renewable Energy Generating Systems Regulations, 2024, which primarily focuses on incorporating Virtual Net Metering (VNM) and aligning with updated consumer rights rules. This amendment aims to make rooftop solar energy more accessible and flexible, especially for residential consumers, and addresses technical and regulatory challenges that have emerged since the original regulations were implemented.
Virtual Net Metering is a significant addition in this amendment. It allows multiple residential consumers, such as those in multi-storied buildings or housing societies, to collectively use a single renewable energy generating system located within the same distribution licensee’s area of supply. This system can be installed on a common rooftop or any other common area and is designed to cater to the energy needs of all participating consumers. Under VNM, the energy generated is credited to the electricity bills of the participants based on a pre-agreed ratio. This approach is particularly beneficial for consumers in buildings where installing individual rooftop solar panels is impractical due to space constraints or other limitations.
Several stakeholders, including the Maharashtra State Electricity Distribution Company Limited (MSEDCL) and private entities like Adani Electricity Mumbai Limited (AEML), raised concerns during the public consultation process. A key issue highlighted was the potential overlap of VNM with existing Green Energy Open Access policies, which could complicate regulatory frameworks and affect grid operations. There was also concern that allowing VNM without proper regulatory oversight could lead to the proliferation of renewable energy developers acting as de facto electricity providers without adhering to the same regulatory standards. To address these concerns, the Commission clarified that while VNM will be promoted initially, certain limitations will apply, such as setting a cap on total rooftop solar capacity eligible for exemptions on open access charges until it reaches 5000 MW in Maharashtra.
The amendment also introduces measures to support the operationalization of VNM. For example, the Commission has outlined specific rules for energy accounting and settlement under VNM. The energy generated by the renewable system will first be used to offset the consumption of each participating consumer in the same billing cycle, with any surplus being carried over to the next cycle as energy credits. However, this surplus is treated as if it occurred during off-peak hours for consumers under a Time of Day (ToD) tariff and normal hours for those not under ToD. This ensures a fair distribution of benefits and aligns with the overall grid management strategies.
Another significant aspect of the amendment is the enablement of microgrids at the housing society level. This provision allows societies to set up a grid-connected microgrid encompassing renewable energy systems, with or without storage, integrated with backup generators. Such systems aim to optimize the use of renewable energy within the society and reduce dependency on the main grid during power outages, ultimately lowering fossil fuel consumption.
The Commission has also addressed the potential financial impacts of these regulations on distribution licensees. For instance, while the amendment encourages the adoption of renewable energy, it recognizes the need to protect the financial health of distribution companies by ensuring fair cost recovery mechanisms. Therefore, while some charges are exempted initially to promote rooftop solar adoption, the Commission has indicated that these exemptions will be revisited once the aggregate rooftop solar capacity reaches the specified threshold.
The introduction of Virtual Net Metering and other provisions under the Second Amendment represent a significant step towards more flexible and inclusive renewable energy regulations in Maharashtra. By enabling broader participation and addressing various stakeholder concerns, the MERC aims to facilitate the growth of rooftop solar installations while maintaining grid stability and ensuring fair cost distribution among all consumers. This approach reflects a balanced regulatory strategy that seeks to advance renewable energy adoption while managing the complexities of grid integration and market fairness. |
