New Net Metering Order for Rooftop Solar Systems in Himachal Pradesh

The order applies to residential consumers

April 4, 2019


The Himachal Pradesh Electricity Regulatory Commission (HPERC)  has issued an order for rooftop solar grid-interactive systems based on net metering.

Last month, it had issued a draft order called the Himachal Pradesh Electricity Regulatory Commission (Rooftop Solar PV Grid Interactive System based on Net Metering) Order, 2019. The final order is similar to the draft order.

This order applies to those domestic consumers who have a letter of approval to install rooftop solar PV grid-interactive systems based on net metering issued after November 15, 2018, and who have subsequently installed these systems.

The DISCOM will calculate the per kWh rate payable to domestic supply consumers at the close of the settlement period based on net metering. This will be equal to 30 percent of the weighted average per kWh rate at which it has purchased power from the ground-mounted solar PV projects of up to 5 MW capacity in the state.

The eligible domestic consumers will be paid the mentioned tariff for the electricity credits if any remaining unadjusted at the end of the settlement period during the life of 25 years of the rooftop solar PV system.

“The distribution licensee will work out the weighted average rate for the purchase of energy with respect to each calendar year and the rate payable for each completed settlement period by 15th day of the month of February in each year i.e., about 45 days immediately preceding the close of the relevant settlement period for which the rate is to be determined,” the order said.

Several other states have also introduced net metering guidelines for solar rooftop consumers in the past few months.

Recently, Tamil Nadu issued a net metering order under which an eligible consumer can install the maximum capacity of the solar rooftop, up to 100 percent of the contracted demand, with the distribution licensee.

Similarly, Rajasthan has amended its net metering regulations passed in the year 2015 for rooftop solar. According to the amendment, if the electricity injected by a domestic category consumer exceeds the electricity consumed during the billing period, the excess injected electricity above 100 units will be paid by the DISCOM at the rate of ₹3.14 (~$0.04)/kWh.

Uttar Pradesh’s net metering regulation has made it clear that both net-metering and gross-metering of the electricity generation by a consumer, which is not an obligated entity, will qualify towards compliance of renewable purchase obligation (RPO) for the DISCOM.

Even with all the developments, the net metering policy continues to be a drag on India’s rooftop solar sector. Its implementation has been rocky on the ground and many states are hesitant to provide a robust environment for rooftop solar as DISCOMS do not want to sacrifice premium customers who pay a higher tariff.

Nitin is a staff reporter at and writes on renewable energy and related sectors. Prior to Mercom, Nitin has worked for CNN IBN, India News, Agricultural Spectrum and Bureaucracy Today. He received his bachelor’s degree in Journalism & Communication from Manipal Institute of Communication at Manipal University and Master’s degree in International Relations from Jindal School of International Affairs. More articles from Nitin Kabeer