The recent announcement regarding the Amendment to the Electricity (Rights of Consumers) Rules, 2020 is a clear misdirect at the behest of discoms to embellish the real update – the reduction of the net metering cap.
The net metering policy was and is already in effect across the majority of Indian states. However, the ceiling for the same was higher. By implementing the cap of 500 kW, the government has effectively handicapped the rooftop solar segment. The development is bound to adversely impact solar adoption, by the already suffering MSME sector and will limit the rooftop solar segment’s growth.
We expected the policy to clarify the charges applicable for net metering consumers, rather than letting the states decide. The arbitrarily charges that will be imposed are bound to further stent the growth of the rooftop solar segment in the country.
The only silver lining seems to be the introduction of net metering in select states such as Tamil Nadu and Karnataka, if thoroughly implemented. All in all, this policy framework is acting as a mirage, and we can expect multiple exits of relatively smaller solar developers.
Animesh Damani, Managing Partner, Artha Energy Resources, here is expressing his views on the latest announcement about the Amendment to the Electricity (Rights of Consumers) Rules, 2020 on net metering. To view the official Gazette notification of this amendment, click here.
