Uttar Pradesh Rooftop Solar PV : consumer’s perspective

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Uttar Pradesh has acted swiftly in encouraging the uptake of solar by releasing draft rooftop solar PV regulations quickly followed by the final guidelines. An attempt has been made to replicate the Gujarat solar model which comes as a welcome surprise. While reading the final UPERC Regulations for ‘Rooftop Solar PV Grid Interactive Systems Gross/Net Metering’ released on 20th March, 2015, one notices that the state is giving a choice between net metering and gross metering.

Also, clearly indicating how they plan to handle the electricity being fed into the grid by putting a tab of feeding a maximum of 15% into the distribution transformer of that area. The feel one gets after reading the policy is encouraging. The state is trying to do its bit to live up to the dream of 24*7 power promised by the Modi government, in a fairly structured manner. This blog aims to provide a brief analysis from an end consumer’s perspective weighing the pros and cons. To become Sunkalp Energy’s Solar Advisor and take opportunity of this new policy in Uttar Pradesh, contact us.

With the choice given between net-metering and gross-metering, solar has become a very attractive option and is likely to have a high demand in the state. Predicting the same, UPERC has clarified that applications will be accepted on a first come first serve basis with a validity of 180 days. So consumers are likely to face competition in installing solar on their rooftop- a drastic change from the current situation when the uptake is bleak. However, the rate at which the unadjusted energy credits in net-metering are refunded at the end of the financial year is only at ₹ 0.5/unit. This indirectly encourages rooftop owners to install solar just to meet their demand and no more. Hence, those residential consumers who are trying to really earn money of selling solar to the grid- gross metering is the appropriate option. Eligible consumers for gross-metering would be refunded at the following tariff:

Tariff_above 50 kw Tariff_upto 50 kw

 

The policy also provides a big push to developers who want to set up systems on leased rooftops by allowing gross metering from them as well. Gross metering is definitely the way to go for residential consumers. The power fed to the grid will have pre-set tabs. The Distribution Licensees (Pooorvannchal, Madhyanchal, NPCL, Dakshinanchal) within the state shall update their websites with the available capacity for feeding in power on distribution transformers (15% of total) at different locations by June 20th 2015. This would be updated within a month of the start of the following financial years. Till then applications are invited for installation of systems. Any consumer/third party owner can claim accelerated depreciation benefits on the rooftop solar PV system only if they are availing net metering as defined in the regulations. This has the following implication: those who have applied for gross metering are not eligible to claim accelerated depreciation benefits. So for business owners, net-metering is the way to go for tax benefits. Net-metering consumers (non-obligated RPO entities) also qualify towards compliance of RPO for the Distribution Licensee. And since these end consumers are being allowed to sell RECs while producing power from their system as an additional benefit, hence, they would be willing to sell them at floor prices facilitating trading for RECs.

Finally, the application process is simple for consumers. They can refer to the regulations document for details (Page 6-9)]. It has been detailed below in the flowchart. It can take anywhere between 10 days to 5.5 months for the entire process to be completed depending on how fast both parties [end consumer(C) and Distribution Licensee(D) ] act.

Application flowchart

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

26 thoughts on “Uttar Pradesh Rooftop Solar PV : consumer’s perspective

  1. NPCL does not have any details on their site for solar power net or gross metering. Do they have any such scheme for residential users

    1. Dear Surya,
      Yes, net metering scheme for residential customers is available. Let us know if you need any assistance with your net metering application.
      Best,
      Team Sunkalp

  2. want to know what is the mandatory requirement of rooftop solar in Uttar Pradesh for Industries, Commercial, Residential.

    If I have a connected load of 125 Kw then how much the minimum solar requirement for compliances.

    1. Dear Atul,

      Currently rooftop solar is not mandatory in Uttar Pradesh. The great thing is, you can still install solar power to reduce your electricity bill. A wide range of financing options are available as you can get breakeven in as less than 3 years. In fact, an industrial unit should also consider installing solar for tax savings or accelerated depreciation benefit. Let us know if we can help you with your solar requirements in any way- we can send a technician for a free site survey.

      Best,
      Kanika

      1. Hi Team ,

        I am looking for install 10 KW rooftop solar for my house in Sitapur Uttar Pradesh , There are also few of my friends making their mind to install the same at my location , How can we go a head to install and expenses to install rooftop.
        Kindly advise.

        1. Dear Atul,
          Thanks for your interest in Solar. Our Customer Relationship Manager will drop you an email to discuss. You can also call our hotline at 011-41647143 at anytime with questions related to rooftop solar in Uttar Pradesh.

          Best,
          Team Sunkalp

  3. I am trying to install Rooftop Solar PV in Ghaziabad (Uttar Pradesh) I contacted local officer of UPNEDA and Executive Engineer of PVVNL to know about format of application to be submitted for Net Metering and Rooftop Solar PV.

    Both officers did not know and were neither helpful nor willing to share information

    1. Dear Rajiv,

      Sunkalp Energy will be releasing a feature in our Sunkalp Partner App on Android very soon for net metering UP. We will get in touch with you once the feature is released. Please let us know the capacity of the projects that you need net metering assistance with.

      Best,
      Team Sunkalp

  4. I want to setup Rooftop Solar PV systems in Noida for both, my factory and my home. How long does it take to get the approvals and do the setup? How much would they cost? What area would be required? Would net or gross metering be better?

    1. Thanks Rohit for contacting us. Apologize for the delay in responding. Approvals typically should take about a month. We send you a quotation if you want to know the price. It would be great if you can drop me an e-mail about this on my mail ID- tanya@sunkalp.com.

  5. Hello Team,
    I want to setup Rooftop Solar PV systems in “Gaushala” in Sonipat to cater the energy requirement. The ‘Gaushala’ is spread in 2 acres. We have a closed shelter there. The roof of that shelter is approximately 100 by 25 meters. So, Let me know how much capacity of Solar System can be installed over the roof. What are the subsidiaries available for these type of projects. How long does it take to get the approvals and do the setup? How much would they cost?

  6. I am shortly starting a metal packaging factory in Greater NOIDA in a 5000 square feet shed taken on long term lease.
    The power requirement is in the range of about 40 KW. Does it make sense to go in for roof top solar for this purpose.
    Thanks

    1. Dear Vidur,

      It makes complete sense to for a Solar Power system since it can contribute heavily in reducing your electricity bills and safeguarding you from high recurring costs. The pay back can be achieved in 3-4 years beyond which, electricity is free!

      But, how long term is the lease?

      Regards,
      Tanya

  7. Dear Tanya Batra
    Can you be explicit in explaining for being EPC contractor for net metering you need to be channel partner approved by MNRE

    1. Dear Mahendra,

      That is not a mandatory requirement. However, if you wish to outsource this bit to MNRE channel partners, you may.

      Regards,
      Tanya

  8. Dear Tanya,

    Is gross metering only applicable for residential consumer ???
    Is there any capacity restriction to avail gross metering benefits???

    Please let me know in detail about gross metering benefit.

    Thanks
    Shivangi

    1. Dear Shivangi,

      No, it’s applicable to both Residential and Commercial customer. There is a capacity restriction of 1MW. Let me know what details you’re looking for. You may write to me on tanya@sunkalp.com.

      Looking forward to hearing back from you.

      Regards,
      Tanya Batra

  9. Hello – Pls let me know if the gross metering tariff is currently being paid in UP by the Discom? Also, will they be paying Rs 8.37/unit for the next 25 yrs if I install a system this yr?

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