Opinion & Analysis

The amendment to Electricity (Rights of Consumers) Rules, 2020 provides multiple options in addition to net metering, which will balance out the concerns of all the stakeholders.

The adoption of local, community-based energy solutions like rooftop solar and batteries can help make the energy grid more flexible and reliable. Home solar and batteries will enable the growth of ‘prosumers’ who produce and share energy, as well as consume it.

The Ministry of Power has issued a draft amendment to Electricity (Rights of Consumers) Rules, 2020, which allows net metering for rooftop solar systems of loads up to 500 kW or up to the sanctioned load, whichever is lower and net billing (gross metering) or net feed-in for above 500 kW.

The Indian power sector is set for a revolution with the proposed market-based economic dispatch (MBED) mechanism. MBED aims to establish a uniform pricing framework that prioritizes the least cost and most efficient generators while backing down more expensive ones, thereby creating a national merit order.

Through various initiatives and schemes, the Indian government has created a conducive environment for industry stakeholders to expand domestic manufacturing. The industry should seize the opportunity to ramp up capacity and manufacture emerging technologies such as monocrystalline (mono-Si), bifacial and half-cut cells, micro-inverters, and tracking equipment, all of which promise further solar efficiency gains over the coming years.

The idea behind introducing the Approved List of Models and Manufacturers (ALMM) was to have a quality benchmark for solar modules. However, in its current form, it is more of a non-tariff barrier for foreign manufacturers and limits solar developers in terms of the choice of module wattage and make.  

As PV waste is set to rise rapidly in the coming decades, India needs to invest in efficient recycling technologies and devise a clear-cut policy for the safe disposal of PV waste. Guidelines for stringent quality checks and validation for both imported and locally produced solar panels are also needed to avoid early-loss solar waste.

The Production-Linked Incentive (PLI) scheme in batteries and solar will help India graduate from a passive recipient to an active driver in the global clean-tech story.

With the draft National Electricity Policy (NEP) 2021, India is providing the right policy direction for this decade of the energy transition. Yet, there is room for further improvement. 

Modules represent 45 to 55% of the project capex. In a very competitive market like India, independent power producers have lower margins, and even a modest increase in module prices will put more pressure on them.