New consumer rights rules may hit rooftop solar capacity addition

By financial express

The latest rules regarding the consumer rights laid down by the Union power ministry is seen to impede the pace of capacity addition of the rooftop solar in the country by disincentivising commercial and industrial users from installing such power generation capacities in their premises.

While such consumers were earlier earning around Rs 7/unit by selling the surplus power generated from their rooftop solar plants to the state-run power distribution companies (discoms), under the new mandate they will be billed through “gross metering”, and compensated at rates close to the average power purchase cost of discoms which ranges around Rs 3.5– Rs 4/unit.

The national solar energy federation of India has requested power minister RK Singh to amend the provision on gross metering for larger rooftop consumers, pointing out that “investment to the tune of Rs 1,500 – 2,000 crore is either under contract or under commissioning phase” for such rooftop capacities and the new mandate “will create uncertainty and impact the ongoing projects”.

Out of the total solar capacity of 36,910 MW, only 3,402 MW currently comes from rooftop solar. The government aims to have 40,000 MW of rooftop solar capacity by 2022.

financial express
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