TNERC Introduces Comprehensive Draft Regulations For Solar PV Generating Systems In Tamil Nadu – SolarQuarter

The Tamil Nadu Electricity Regulatory Commission (TNERC) has introduced a new draft regulations for grid-interactive solar photovoltaic (PV) energy-generating systems in 2024. This new regulation aims to replace the previous guidelines set in 2021 and includes several updated provisions to promote the use of solar energy and battery energy storage systems across the state. The regulation seeks to make the implementation of solar energy more efficient and widespread, addressing various stakeholders including consumers, prosumers, generators, and government bodies.

The draft regulation is designed to cover the entire state of Tamil Nadu and applies to all categories of solar energy users. It includes provisions for net metering, group net metering, net billing or net feed-in, gross metering, and virtual net metering. Each of these mechanisms offers different benefits and operational procedures for users based on their needs and capacities.

Net metering is available to domestic consumers and certain service connections under specified tariffs. This mechanism allows consumers to offset their electricity consumption with the energy they generate from their solar PV systems. If they generate more energy than they consume, the surplus is credited to their account and can be carried over to future billing cycles. Consumers also have the option to migrate between net metering and net feed-in mechanisms twice in a financial year, providing flexibility in how they manage their energy consumption and generation.

Group net metering is another innovative feature that allows domestic consumers to adjust the surplus energy generated from one connection against multiple service connections within the same distribution licensee’s area. This mechanism is particularly beneficial for consumers with multiple properties or facilities, as it enables them to maximize the utilization of their solar energy generation across all their properties.

Net billing or net feed-in is available to a broader range of consumers, excluding hut and agricultural categories. Under this mechanism, the monetary value of the imported and exported energy is calculated separately. The exported energy is credited based on a feed-in tariff, while the imported energy is debited based on the applicable retail tariff. This allows consumers to benefit financially from the energy they generate and export to the grid.

Gross metering is an option for new and existing consumers and generators who wish to sell their entire generated solar energy to the distribution licensee. This mechanism is suitable for larger solar installations where the generated power is not used for self-consumption but is entirely fed into the grid. The energy is credited to the generator at a preferential tariff determined by the TNERC.

Virtual net metering is available to government bodies and local authorities. This mechanism allows them to set up solar power plants on their own or leased open land and adjust the generated energy against their consumption or the consumption of subsidized categories. This can be a CAPEX model, where the entire cost is borne by the government or local body, or a RESCO model, where the cost of the plant is borne by a Renewable Energy Service Company.

The draft regulation also outlines the technical and operational requirements for the installation and maintenance of grid-interactive solar PV systems. It includes provisions for metering arrangements, ensuring that all meters comply with the necessary standards and have advanced metering infrastructure capabilities. The regulation mandates the installation of bidirectional meters for net metering, net billing, and virtual net metering mechanisms to record both the import and export of electricity.

Additionally, the regulation stipulates the responsibilities of the distribution licensee and the consumer/prosumer/generator in maintaining and operating the solar PV systems. The distribution licensee is responsible for the testing, installation, and maintenance of the metering equipment, while the consumer/prosumer/generator is responsible for the safe operation and maintenance of their solar PV systems.

In case of any meter defect or failure, the regulation provides guidelines for determining the electricity generated during the period the meter is defective. This ensures that consumers and generators are fairly compensated for their solar energy generation even in the event of technical issues.

The TNERC has invited comments and suggestions from the public on this draft regulation, emphasizing the commission’s commitment to stakeholder engagement and transparent regulatory processes. The regulation is expected to drive significant growth in the adoption of solar energy in Tamil Nadu, contributing to the state’s renewable energy targets and promoting sustainable energy practices.

By introducing these comprehensive guidelines, the TNERC aims to create a robust framework that supports the expansion of solar energy, enhances energy security, and reduces the carbon footprint of the state. The draft regulation is a significant step towards making Tamil Nadu a leader in renewable energy and setting an example for other states to follow.

Please view the document here for more details.

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