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Further to its drive of making solar power affordable and encouraging people to install solar power systems, Haryana has implemented yet another amendment to its net-metering regulation. This amendment is an incentive to boost the acceptance of grid synchronised solar power systems in Haryana.

The amended clause is as follows:

In order to promote Solar Power generation in Haryana through net metering, the licensees shall provide incentive on the power generated through rooftop solar system. Incentive at the rate of 25 Paise per unit shall be given during the FY 2015-16 on the solar power generated to the extent the same is admissible for off-setting consumer’s consumption as per Regulation 9.1. The incentive payable shall be given by way of adjustment in the energy bill in each billing cycle. The incentive payable under these Regulations shall be reviewed by the Commission every year alongwith ARR/Tariff petition for that year and the incentive payable accordingly for FY 2016-17 onwards. Provided that the amount of incentive paid by the licensees during the FY 2015-16 shall be made revenue neutral by the Commission while issuing Order on the ARR/Tariff petition of the licensees for the FY 2016-17.

 

What this clause effectively means is that for every unit of electricity generated, the user would be paid a rebate of 25p, which in turn would be adjusted in the final bill. This should prove to a great incentive for consumers, in addition to the subsidy. End users say that staff of DHBVN seems blissfully unaware about net-metering and the method to process applications. A senior officer in HERC (the regulatory body in Haryana) said that DHBVN is bound by law to process applications for net-metering, and strict action could be taken against stalling the process. Dr.Tripathy of the MNRE mentioned that every citizen in Haryana has the right to take up solar power systems and utilize the benefits from net-metering.

The benefits of this amendment would be something like the following:

Cost of a typical 3kW solar system = Rs.2.64 lakhs

With a 15% subsidy, the cost of the system = 2.24 lakhs

The breakeven period for the mentioned solar power plant would be approximately 4 years – post, which the user’s cash flows would become positive. The user would move from 2.2 lakhs (with the subsidy) to Rs.10.7 lakhs in a span of 20 years – a gain of approximately Rs.12.9 lakhs. These amounts present a conservative scenario – the breakeven period could come down by at least a year or two, if the following benefits offered in Haryana, were taken into consideration.

  • 15% subsidy for non-commercial users (the above figures too depict household solar)
  • A rebate of 25p, on electricity sent back to the grid
  • Commercial entities seeking to ‘go solar’ could benefit from the accelerated depreciation and a larger sized system – leading to an even lowered breakeven period

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