India : HERC increases incentive on grid connected solar power generation

Gurgaon: In a development that should give a big push to solar power generation in the state, incentive given to rooftop solar plants installed under the state's new solar policy for residential buildings for solar power generation has been quadrupled, from 25p per kWh to Rs1 per kWh.

The order from Haryana Electricity Regulatory Commission (HERC) says starting from August 2016, till March 2017, an incentive of Rs 1/kWh shall be given by the discoms, instead of the 25 paise/kWh offered earlier, during financial year 2016-17.

For rooftop solar systems installed by consumers under the new solar policy (starting April 1, 2016 till July 31, 2016), incentive shall be given at the rate of 25 paise/kWh for the corresponding period. From there on, the incentive shall be applicable at Rs 1/kWh.

"The incentive is assessed by HERC every year. This year, the commission has decided to raise it from 25 paise/kWh to Rs 1/kWh. This is applicable for rooftop solar power plants installed in residential homes," said a senior Haryana Renewable Energy Department (HAREDA) official.

He added the incentive will be capped at 90% of total consumption in any financial year. Buildings of all categories other than residential, will continue to get paid an incentive at 25 paise/kWh. The development has been received well by industry people.

"When a consumer installs a solar power plant, (s)he is bothered about the huge initial capital outlay. Higher incentive will bring down the consumer's return on investment by a great degree, which should encourage more consumers to opt for net metering," said Shubhra Puri, who works in the solar industry.

Using net metering, the user can source his supply from both the discom grid and his rooftop solar plant. If supply from any one stops, the system automatically switches to the other. The meter records how much power was used from which source, and charges the user for the difference.

So far, Gurgaon has 11 active net meters that supply power back to the grid. Of these, only four are in residential buildings. There are 54 pending applications for net metering with the department.

Source :

Smart Grid Bulletin February 2019

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