Chhattisgarh DISCOMs to Procure Excess Energy from Distributed Solar Projects at ₹1/kWh

New state regulations for distributed solar projects will be effective from April 1, 2019


The Chhattisgarh State Electricity Regulatory Commission (CSERC) has issued terms and conditions for distributed solar projects in the state. These regulations will come into force from April 1, 2019.

The new regulations will apply to consumers willing to set solar energy project under net metering directly or through RESCO mode. While the minimum capacity of a project must be 1 kW, the maximum limit has been set at 1 MW.

Key Highlights

  • For solar generators of total capacity 10 kW and above, connectivity with distribution system of the licensees will be carried out by the distribution licensee after getting permission from the chief electrical inspector (CEI).
  • For solar PV generators with a total capacity less than 10 kW, connectivity with distribution system of the licensees will be carried out by distribution licensee after getting permission from the chartered electrical engineer.
  • The cumulative capacity of distributed solar energy projects allowed to be interconnected with the distribution network will not exceed 100 percent of the feeder or distribution transformer capacity.
  • Distributed solar energy projects of capacity 10 kW and above will need to have full-fledged communication interface and data acquisition system.
  • Any consumer in the area of the DISCOM will be eligible to establish distributed solar energy projects, under net metering on a first-come-first-serve basis.
  • The capacity of project should not exceed the sanctioned load of the consumer.
  • In case a solar distributed energy project is set up at a distant location, open access is not required. These projects will be exempted from wheeling charges, cross subsidy charges and other surcharges.
  • If a project installed at consumer’s premises delivers excess electricity to the DISCOM, the DISCOM will procure such excess energy generated at the end of settlement period at the rate of ₹1 (~$0.014)/kWh.
  • The DISCOM will procure excess energy generated by distributed solar energy projects at the end of the settlement period. The payment amount will be given as credit in the subsequent billing month of the next settlement period of the consumer.
  • No charges for connectivity with the distribution licensee for distributed solar projects coming under these regulations will be levied.

The state commission has also asked that all DISCOMs create in-house distributed solar energy (DSE) cell and submit the compliance report in this regard to the commission within two months from the date of notification of these regulations.

In Chhattisgarh, rooftop solar tenders have been very few and even the deployment rate has not picked up. In May 2018, Chhattisgarh State Renewable Energy Development Agency (CREDA) tendered 50 MW of rooftop solar projects to be installed in the state. In January 2018, CREDA had tendered 2.084 MW of solar PV projects to be established across the nine districts of Chhattisgarh.

With these new regulations, it is expected that solar capacity in the state will gradually gear up to speed.