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Karnataka finally determines tariff for Rooftop Solar PV

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I am all praises to KERC since it passed the new Order to determine tariff for Small Rooftop Solar PV Plants. The feeling that I got after reading this policy was that of satisfaction. Before the commission set any standard for parameters relating to Rooftop Solar Projects, it consulted with one or more parties. The commission has done a fair amount of research before setting any standards. Hence, this Tariff Order issued on May 2nd 2016, surprisingly sounds reasonable.

The Order

Following are the targets that Karnataka aims to achieve by 2018 in the segment of Rooftop Solar Plants.

Year- Wise Target

But, today, I am going to focus on the section on ‘Net-Metering and Gross Metering’. Karnataka is quite unique when compared with Net Metering Regulations of other states. Following are the key highlights:

Simplified by Sunkalp

 

 

 

Parameter

Net-Metering

Gross Metering

Customer Type Commercial and Industrial and all categories except domestic Domestic, Hospitals and Institutions
Installable Capacity 150% of Sanctioned Load 150% of Sanctioned Load
Limits in kW

HT Consumers: 1000 kW

LT Consumers:

–      5 kW for Single Phase

–      50 kW for Three Phase

HT Consumers: 1000 kW

LT Consumers:

–      5 kW for Single phase

–      50 kW for Three Phase

Feed-In mechanism for which tariff is paid Only excess is fed in All energy is fed in

The tariff at which the customer would be paid is as shown in the table below, both for Net-Metering and Gross- Metering:

size wise tariff

Our Analysis

This clears the initial buzz about the DISCOM paying customers INR 9.56 per unit (refer to previous order). But, even the current order, although has revised the tariff, has not updated the subsidy amount to 30% for calculating tariff with subsidy. Perhaps, an amendment will follow.

The Order further, states a provision wherein domestic customers would be allowed to get third party investments for installing a Solar Power System on their Rooftop. It is indicative the benefits will be shared between the Investor and the Roof Owner. This sounds like one of the most logical choice a Roof Owner will make. However, the question remains how many Investors would be willing to invest in such projects. Delving a bit deeper, this makes more sense and has lesser risk for the Investor as compared with PPA projects which sells directly to a domestic customer. So, a few months down the line, we might see uptake of this mechanism.

Karnataka’s new Tariff Order, in my opinion, will create some buzz in the state about Rooftop Solar especially about Gross Metering and Third Party Investment model. Net- Metering as usual does make sense for the Commercial and Industrial segment in terms of reducing their bills. You can get an estimate of your savings by visiting Sunkalp’s Solar Calculator. Solar is set to shine in the state of Karnataka.

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

13 thoughts on “Karnataka finally determines tariff for Rooftop Solar PV

  1. Dear Ms. Tanya Batra,

    I am working for Solar roof installation in Delhi & NCR, I have communicated, E-mailed and met M.N.R.E. authorities including secretary, joint secretaries, directors and scientists since May, 2015. I would like to mention that the 100% exemption in Income Tax may be extended for VAT, CST Service Tax and MAT, as when Government is ready to loose Tax for investment in solar plant installation why only in case of Income Tax. You are requested to see and take the matter in your blogs to the the authorities including Piyush Goyalji and Narendra Modiji and a copy marked to me via my E-mail. Please send your E-mail ID so that I will send few of my E-mails for youe kind oerusal, information, record and further usage.

    Regards.
    K.K.Saxena

    1. Dear Ms. Tanya Batra,

      I am working for Solar roof installation in Delhi & NCR, I have communicated, E-mailed and met M.N.R.E. authorities including secretary, joint secretaries, directors and scientists since May, 2015. I would like to mention that the 100% exemption in Income Tax may be extended for VAT, CST Service Tax and MAT, as when Government is ready to loose Tax for investment in solar plant installation why only in case of Income Tax. You are requested to see and take the matter in your blogs to the the authorities including Piyush Goyalji and Narendra Modiji and a copy marked to me via my E-mail. Please send your E-mail ID so that I will send few of my E-mails for youe kind oerusal, information, record and further usage.

      Regards.
      K.K.Saxena

  2. Nice blog Tanya. Its really helpful. I am interested in the North-Eastern states of India and would like to know is there any tariff policy for the same. Cuz this region is still virgin in the field of Solar Power and I believe there is ultimate possibility of Renewable Energy, specially the Solar.

    looking forward to hear you soon.

  3. Hello Good morning to you Tanya
    This is Darshan Prabhu from Mumbai, heading India operations for an MNC. We have interest in Solar Projects. Some projects are getting offered to us in Karnataka on Triparty basis. I would like know more about the policies. Kindly share your office contact numbers or call us on 9270182350 at the earliest.
    Best regards
    Darshan Prabhu
    9270182350

  4. Dear Tanya,
    Thank you for updating us on rooftop solar policies in Karnataka.I stay in Karnataka and would like to know more about net metering.
    I run a diagnostic centre on the ground floor and have a residence on the first floor.
    1.Do I need to make two separate rooftop solar installations? One for the residence and another for the diagnostic centre?
    2.Can I opt for net metering for my diagnostic centre.If yes- how will I be billed? The amount of power consumed minus the amount of power generated?

    1. Dear Vinay,
      1. You need two separate rooftop solar installations if you have separate meters for the residence and diagnostic center.
      2. Yes you can opt for it. You will be billed the same way which an extra table on units consumed from Solar Energy. Yes, that will subtract units consumed by solar system from your bill.
      Regards,
      Tanya Batra

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