Haryana net metering

Haryana incentivised to go solar: Net-metering amendment

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Haryana has come out with another amendment in its net-metering regulations which acts as an incentive for the uptake of grid-synchronous solar in Haryana (refer to point 9 in the amendment).

The clause is as follows:

In order to promote Solar Power generation in Haryana through net metering, the licensees shall provide incentive on the power generated through rooftop solar system. Incentive at the rate of 25 Paise per unit shall be given during the FY 2015-16 on the solar power generated to the extent the same is admissible for off-setting consumer’s consumption as per Regulation 9.1. The incentive payable shall be given by way of adjustment in the energy bill in each billing cycle. The incentive payable under these Regulations shall be reviewed by the Commission every year alongwith ARR/Tariff petition for that year and the incentive payable accordingly for FY 2016-17 onwards. Provided that the amount of incentive paid by the licensees during the FY 2015-16 shall be made revenue neutral by the Commission while issuing Order on the ARR/Tariff petition of the licensees for the FY 2016-17.

This means that for every unit of generated electricity, in addition to an adjustment in the bill, you will be paid a 25 paisa rebate which would be adjusted in the bill. This comes as a great incentive to consumers especially along with the subsidy.

There is some feedback that we have received from end customers that DHBVN does not seem too aware about net-metering and how to process applications. On speaking with a senior officer in HERC (the regulatory body in Haryana), we were told that DHBVN is legally bound to process net-metering applications could be taken action against on stalling the process. As MNRE’s Dr. Tripathy rightly said at the Solar Summit in Gurgaon, it is every citizen’s right Haryana to go solar and take benefit of net-metering.

Let’s see what the benefits look like graphically.

Cost of a typical 3 kW solar system= 2.64 lakhs

With subsidy of 15%, the system cost= 2.24 lakhs

Cash flows residential

The breakeven period for such solar power plant would be approximately 4 years beyond which the consumer’s cashflows would be cash positive. The consumer will go from 2.2 lakhs (with subsidy) to 10.7 lakhs in 20 years- an effective gain of 12.9 lakhs.

This is the most conservative scenario. The breakeven period would reduce by a year or two, when we take into consideration the following benefits being offered in Haryana:

  • A subsidy of 15% for non-commercial entities (in the above case, we have analysed a case for solar in a household)
  • 25 paisa rebate on feeding electricity back to the grid
  • A commercial entity that wants to go solar can take benefit of both accelerated depreciation and a bigger system size which would lead to a smaller breakeven period

If you think it’s time to enquire about solar, do give us a call (+91-11-41620247) or click here to get a free proposal.

Tanya Batra

Tanya keeps a close track of policy updates in the field of Rooftop Solar in India and likes to write blogs on its application for the end customer