MERC proposes a draft second amendment to the 2024 regulation on interactive rooftop renewable energy systems on the grid

A significant move towards sustainable energy use is underway in Maharashtra with a draft amendment to existing guidelines for interactive rooftop renewable energy systems. This second amendment allows both individual and collective configuration of renewable energy systems such as solar panels in the same electricity distribution area, thereby increasing availability and utility.

Under the amended regulations, each individual customer can install a renewable energy system anywhere in the territory of his or her distribution licensee. This flexibility allows for the production of renewable energy through solutions such as virtual grid metering. Virtual grid metering is particularly innovative because it allows energy produced in a renewable system to be shared between multiple consumers. For example, members of a housing association can collectively install and use one renewable energy system. The total capacity of this system is only the sum of what each participating consumer is entitled to, ensuring fair and equitable distribution and use.

Moreover, these updates streamline the technical and bureaucratic processes associated with configuring new systems. Any residential installation up to 10 kW no longer requires a technical feasibility study, speeding up approval times. For larger setups, the policy establishes a timeline for completing feasibility studies, emphasizing efficiency and responsiveness on the part of distribution licensees.

For energy accounting, the changes detail a clear methodology. The energy generated is first used to cover consumption in appropriate time blocks of the billing cycle. Excess energy is treated differently depending on the time of day the consumer uses energy, ensuring credits are accrued fairly. At the end of the financial year, any unadjusted credits are handled according to specific guidelines, maintaining transparency and accountability in energy billing.

These modifications not only facilitate the adoption of green energy, but also reflect a regulatory environment that supports innovation and consumer choice in energy sources. The updates anticipate the future growth of the sector and aim to build infrastructure to support rooftop solar installations of up to 5,000 MW, marking a significant commitment to renewable energy in Maharashtra.

The Maharashtra Electricity Regulatory Commission (MERC) has made these rules under the powers conferred under Section 61 and Section 86(1). 3 read with section 181 of the Electricity Act 2003 (36 of 2003). Additionally, these regulations are consistent with paragraph 5.3 of the Tariff Policy of 2016 and other implementing powers. Following its previous publication, MERC has adopted the Maharashtra Electricity Regulatory Commission (Interactive Rooftop Renewable Energy Generation Systems) (Second Amendment) Rules, 2024, which amends the Principal Rules issued in 2019 and the First Amendment in 2023.

One of the important suggestions contained in these amendments is the emphasis on virtual network metering. This system is beneficial for individual customers who may not have adequate space for individual installations. By enabling many individual customers, including housing associations, to create a common renewable energy system, the regulations promote collective energy production and consumption. This will make the benefits of renewable energy more widespread and accessible.

Another key suggestion is to simplify the process for residential installations up to 10 kW. By removing the requirement for a technical feasibility study for smaller installations, the changes aim to reduce administrative burdens and speed up the rollout of rooftop solar systems. This change is expected to encourage more residential consumers to invest in renewable energy, contributing to the state’s overall sustainability goals.

In addition, the changes include clear and detailed guidelines for energy billing. This approach ensures that energy production and consumption are accurately recorded and excess energy credited appropriately. This transparency is crucial to building consumer confidence and promoting the widespread use of renewable energy systems.

Overall, these regulatory updates reflect the proactive approach of the Maharashtra Electricity Regulatory Commission to support and expand the use of renewable energy. Addressing technical, administrative and financial aspects, the amendments aim to create an enabling environment for the development of the renewable energy sector in Maharashtra. The state’s commitment to increase rooftop solar capacity to 5,000 MW underscores its commitment to sustainable energy and reducing its carbon footprint.

More details can be found in the document below.

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