Net Metering implementation in Indian States

for Rooftop Solar Deployment

- State in Focus : Madhya Pradesh

23 September 2015

Partnership to Advance Clean Energy - Deployment

(PACE-D)

Technical Assistance Program

2

Renewable Energy Energy Efficiency Cleaner Fossil

USD 20 million, five year bilateral

program between the U.S. and India

to accelerate clean energy

deployment (2012-2017)

Being implemented by Nexant Inc.

and a consortium of Indian and U.S.

partners.

Program Overview

3

Program Objective

4

Program Snapshot

5

Tasks under Renewable Energy Component

Institutional Development and

Strengthening of State Policy & Regulatory

Framework for RE Deployment

Improve capacity of SNAs and SERCs, and develop

enabling policy and regulatory environment for market

deployment of RE

Create a RE market via demonstration of techno-

commercially viable pilots in the off-grid/storage domain

and develop a national level apex RE institution

Market-driven RE Technology

Deployment

Technical Assistance and Capacity

Building to Develop and Implement

Innovative Finance Mechanisms

Identify and design innovative financing

mechanisms to facilitate deployment of market-

driven RE

Capacity Building, Training, Outreach,

Dissemination and Sharing of Best

Practices

Improve capacities of stakeholders on policy,

regulatory and technical aspects for large-scale

RE deployment

Regulator Partnership

Build partnerships between regulators in India & the

U.S. to bolster institutional capacity & practices in

market

Microfinance Support Program

Enhance microfinance lending for RE

technologies - particularly for women and energy

access in rural areas

6

Key Outputs under Renewable Energy Component

7

Key Achievements under Renewable Energy Component

Solar Rooftop BESCOM’s Solar PV Rooftop Program

launched [1.5 MW (16.5 MW- pipeline)]

Solar rooftop program for Rajasthan designed

IOCL

• 5MW Rooftop deployment at 3 refineries

• Policy Directive by IOCL - all buildings to

deploy rooftop solar

• Proposed 30 MW rooftop deployment on

refineries, petrol pumps etc.

Indian Railways : 50 MW Solar Rooftop

Program

Solar Rooftop Evaluation Tool – launched

for use by Banks and Developers

4 Solar Rooftop Training Programs

Solar Pumping Grid Connected Solar Pumping with BESCOM:

Design of Pilot under Surya Raitha Scheme : 2 MW (256 pumps; INR 21 Cr)

Shared Service Model for Decentralized Solar Water

Pumping: 0.05 MW

Training & Capacity Building Solar Energy Training Network (SETNET)

Launched with 35 partners

National Workshop on Clean Energy

Regulations & Policies Organized

Microfinance Support Program

Clean Energy Lending Program launched with 7 MFIs

Pilot lending projects initiated with 2 MFI’s - 10000

solar products sold in 3 months

1,234 person hours of training delivered

Renewable Energy Financing Decentralized Distributed Generation Debt Fund

with The Climate Group (corpus Rs. 2.5 Crore)

Green Bonds - IIFCL (500 Cr.), IREDA & Yes Bank

Infrastructure Debt Fund (IDF-MF) with IIFCL ~ Rs.

1000 Cr.

Distributed Renewable Energy Community Fund

with CREDA

PACE-D TA Program - Renewable Energy Achievements

9

Sector Installed by SECI (MW) Installed by States (MW) Total installed (MW)

Commercial 10.9 17.2 28.9

Government 3.0 4.9 7.3

Hospital 1.6 0.5 2.1 Institutional (Schools,

Collages) 2.2 5.1 8.3

Religious institution 0.6 7.5 7.6

Residential 0.0 0.3 0.3

Total 18.35 35.532 54.187

• India’s solar rooftop market potential

~124 GW

• India has set an ambitious target of 40

GW by 2022

• 13 States have notified Solar Policy’s

supporting grid connected rooftop

systems

• 19 states/ UTs have notified regulations

for net metering/feed-in-tariff mechanisms

India’s solar rooftop journey has just started - the sector has the potential for rapid scale

up – right now the sector is still in infancy

Policy and Regulation

Program Design

Process Design and Standardization

Financing

Capacity Building

Knowledge Creation

Programmatic approach : working on policy advisory, program and process

design, capacity building of key stakeholders and knowledge creation

Rajasthan and Karnataka

Indian Oil & Indian Railways

BESCOM & JVVNL

(IREDA & TATA Cleantech)

NISE/ BESCOM/ JVVNL

MNRE & GERMI

• Identifying opportunities (IOCL & IR - Refineries, retail outlets and stations/ workshops)

• Defining potential/ location of sites – 3 refineries (IOCL), 4 workshops/ stations (IR)/ 500 retail outlets

• Feasibility Analysis and Business Case Development (IOCL/ IR)

• Allotment of Incentives/ deployment support (IOCL)

• Bid design and financial feasibility analysis

• Implementation Support (5 MW (IOCL) / 50 MW (IR))

Program Design & Development

• Mapping process for interconnection for state utilities (BESCOM & JVVNL)

• Designing forms, formats, systems and procedures for rooftop for BESCOM & JVVNL

• Identifying Best Practices for Implementation & assisting adoption of standards and empanelment of suppliers

Process Design

We have been using the programmatic approach to address a number of diverse yet

critical solar rooftop eco-system areas for sola rooftop deployment – the most critical of

which have been Program Design and Process Design

• Designing the Net Metering Framework for Solar Rooftop Program Roll out (Rajasthan)

• Supporting Utility Petition for rooftop & release of regulation (Rajasthan)

• Designing Alternate Incentive Structures for Rooftop Promotion (e.g. Feed in Tariffs for Karnataka)

Policy & Regulation

• Best Practices Guide for Promotion of Solar Rooftop

• Solar Rooftop Evaluation Tool for FI’s

• Training Program design for Utilities and key stakeholders on solar rooftop

Capacity Building/ Financing & Knowledge

Management

However we feel that designing the appropriate incentive structures and backing

these up with the right tools like training and knowledge management are equally

important in the medium to long term

13

Broad Objectives

Energy Security Reduction of

Losses

Reducing burden

from Utilities

Optimizing

Infrastructure

Investment

Development of Solar Rooftops

Rooftop Policy/Regulations

Defining Roles

Framing

Guidelines Incentive/

Subsidy

Setting Targets

Market Models Gross Metering Net Metering

Self Owned or

3rd Party Owned

Self Owned or

3rd Party Owned Implementation Framework by Utilities

Case to case

basis

On available

capacity

Policy Regulation Implementation

Department of New &

Renewable Energy,

Government of Madhya

Pradesh (No Role in

Implementation)

Madhya Pradesh State

Electricity Regulatory

Commission

(Minimal Role in

Implementation)

State Distribution

Company/ Consumers/

System Providers/

Channel Partners

(Key Role in

Implementation)

Development Stages & Key Stakeholders

Cost Benefit Analysis and

Investment

Application/ Identification of

system provider

Consumer

System design

Meeting technical standards

and utility requirements

System Provider

Process design &

integration with utility

business practices

Formats and Forms

Utility

15

Broad requirements for designing “Implementation Framework”

Phase -1 Information

Access

Phase-2 Application

Process

Phase-3 Application Screening

Phase-4 Installation/ Inspection

Phase -5 Post

Installation

To develop information bank for Consumers to educate them with respect to solar rooftop, Connectivity requirement , safety etc.

To develop Multi User Application

form required for availing net

metering facility/

connectivity

Developing process to

examine and Shortlist the application based on

technical and safety

parameters

To Approve & Inspect the

rooftop facility before

interconnection with the grid

To perform period checks/

inspections Metering, and monitoring of

technical parameters

and Network Condition

Process flow diagram

Applicant collects the application

form and other key documents

(Web portal, Sub Division)

Applicant submits the duly filled

Application form (sub division )

Utility performs general screening

of application form

Utility performs technical

screening of application form

Utility approves the

Interconnection Application

If, Application form fails to

clear technical screening -

seek relevant information

Utility shall provide

suggestions and reasons for

rejection of application

Applicant installs rooftop

facility and Informs utility for

commissioning test

Utility conducts the

commissioning test and

authorizes operations

If the rooftop facility fails to

clear the Commissioning test

Utility shall provide suggestions and

reasons for failure

Applicati

on

Pro

cess

Uti

lity

Revie

w

Pro

cess

Inst

allati

on a

nd C

om

mis

sionin

g

No

No

No

Yes

Yes

Yes

Yes

Yes

Yes

Yes

If required, Utility will

sign Interconnection

agreement with

consumer

If, Application form fails to

clear general screening

If, Application clear general

screening, utility signal go-a-head

If, Application clear technical

screening, utility signal go-a-head

Inspection by CEI

The serviced RR docket

will be sent to S.Div. for

Billing

If, Application form fails to

clear general screening

17

Fast Track eligibility is determined based upon the following :

• Electrical System Conditions

₋ System Capacity

₋ Voltage level (location, type of line at the Point of Interconnection)

₋ Network Condition (Feeder Capacity, DT loading, Sub Station )

₋ Code, Standards, Certification Requirements

• The capacity of solar rooftop generating facility should not exceed the particular limit

fixed by the utility (Generally system below 10 kW capacity)

• Pre-approved modules, Inverter and other key components are utilised by the system

installer

Eligibility for Fast Track Process

For Fast Track Process – empanelment of specific vendors is key

18

Institutional Setup Required for the Utility

Utility HQ

Division

Sub-Division

Sub Station

• Framing Guidelines, Information Manual, Forms/Formats, Agreements • Approving Equipment suppliers/Vendors, Equipment models, Meters etc. ???? • Managing the overall implementation framework • Organising training programmes for utility staff and key stakeholders • Establishing multiple communication channels for consumers

• Signing of agreements??? Like commercial agreements / PPA • Monitoring Grievance/Complaints registered by the consumer • Recording and managing operations of the grievance handling cell

• Metering and billing of energy supplied to or injected from the SRT facility • Records of Net Metering applications and consumers • Application screening and interconnection approvals • Monthly invoice for net energy billed to consumer/ payment to consumers • Status update of application forms/complaints • Providing information to consumers about the process, forms, formats

• General and technical feasibility study of application form • Pre and post installation Inspection of solar rooftop facility • Commissioning and synchronisation of solar rooftop facility • Meter reading and maintenance of safety of the network

• Who signs the PPA - ESCOM HQ or the Divisions?

• Identifying certified inverters and meters – Who does that/ at what level/ what is the process/ how does this

information trickle down or up to the operations ?

• PPA – How is the PPA rate decided if subsidy has not been committed to ?

• Overall institutional structure and roles and responsibilities at different levels

• Training, capacity building and technical backstopping for utility personnel

• Customer interactions and awareness generation

19

Issues faced by Utilities

20

Typical Net Metering Framework Application Form

Application Register

Feasibility Report format

Approval Letter

Commissioning Letter

Synchronizing Report format

Bill format

PPA

Guidelines for Utility

Schematic diagram

FAQs

Application form for Eligible consumers to apply for Net metering facility

Application register for utility to make record of net metering applications

Feasibility report format for utility to record technical feasibility parameters of project

Approval letter for consumers on approval of technical feasibility of their project

Commissioning letter for consumers on commissioning of their project

Synchronizing letter for successful synchronisation of the project with the utility grid

Bill format for consumers opting for net metering facility from Utility

PPA between the Utility and consumers for sale/purchase of surplus solar energy

Guidelines for Utility staff for implementation of net metering

Schematic diagram for net metered system for utility and consumer reference

Frequently asked questions for providing clarification to Interested/eligible consumers

21

Typical Issues

Availability, Testing and Procurement of Net Meters Guidelines for Consumers Online Submission of fees with application form

• Consumers should be able to apply and pay fees / deposits online

Capacity building of implementation staff • Ground staff’s competency to be built to resolve day to day consumers’

queries

Promotion of Scheme • reach of scheme will be restricted if only through web portal

Grievance Handling – Solar help desk Empanelment of implementing agencies Publishing one time standard approved drawings by CEI instead of

insisting on approved drawings for every SRTPV installation.

22

PACE-D comments on MP draft Net Metering Policy…...(1/2)

Target

Capacity

adopt specific targets with clear timelines for achieving these

targets.

Gross

Metering

include Gross Metering i.e. FIT route as an alternative option for

eligible consumers to develop and implement solar rooftops

Business

Models

include different business models for the promotion of solar

rooftops in the final policy document.

Eligibility and

other

Conditions

also cover eligible consumers, mechanisms for identifying suitable

locations, advice on permissible system size for different consumer

categories, connectivity levels, equipment standards etc.

23

Promotional

Incentives

provide more incentives for rooftop developers for at least first

five years of policy operation.

Sale of

Surplus

power

Sale of Surplus Power should be replaced with “surplus power

generated after fulfilling captive consumption requirements shall

be purchased by the distribution utility at APPC”

Registration

and Post

registration

process

project registration process should be covered in detail with

technical conditions, Interconnection requirements to avail Net

Metering facility by consumers

PACE-D comments on MP draft Net Metering Policy…...(2/2)

24

Scope and

Application

to primarily focus on developing solar distributed generation

through net metering. The draft regulation allows other RE

technologies also to take part under the Net metering scheme

Target

Capacity specify the target capacity under the regulations

Capacity of

distribution

transformer

allow maximum of 50-75% of available distribution transformer

capacity for net metering arrangement.

Individual

project

capacity

specify project capacity (Max/Min) for an individual consumer

under the net metering arrangement to be in-line with the

sanctioned load or contracted load or contracted demand of the

consumer.

PACE-D comments on MP draft Net Metering Regulations…...(1/2)

25

Energy

Accounting

and

Settlement

the settlement of energy credits that remain un-utilized at the

end of the financial year should be settled and credited as per the

Solar Feed in Tariff determined by the Commission on annual

basis..

Provisions

for Safety add provisions with respect to safety in the final regulations

Interconnect

ion Process

add detailed process for Interconnection of Solar PV Rooftop

Systems

Fees and

Timelines

the timelines for processing the application and fees/charges to

be paid by consumers should also be included in the final

regulation.

PACE-D comments on MP draft Net Metering Regulations…...(2/2)

• developing the overall implementation framework required for implementation of net metering

• establishment of institutional framework required to implement Net Metering Scheme

• training, capacity building and technical backstopping for utility personnel – developing capacity of key personals by holding Stake holder

consultations, knowledge exchange programs with other State utilities and regulatory bodies

• sharing of key information, notes, inputs etc. as and when required for implementation of Net Metering.

26

PACE-D Assistance to MP DISCOMs

Key Partners: RE Component

Design and development of

innovative financing mechanisms Microfinance Partners

Capacity to design and implement

supportive policies and regulations

Implementation of techno-commercially

viable pilots

Thank You !

Yuvaraj Dinesh Babu, Chief of Party, USAID PACE-D

ydbabu@nexant.com

Key Stakeholders

28

• Issue net metering regulations

• Amending existing regulations

• Drafting/ approving Model PPA/Net Metering agreement

• Interconnection agreement approval

• Approving tariff for Net export

• Clarity on OA charges, wheeling, Banking etc.

Regulatory Commission

• Accessing Information

• Evaluating potential Opportunity

• Meeting & engaging utility

• Engaging system provider/technical expert

• Cost benefit Analysis

• Filling application forms and formats

• Preparing relevant documents

• Financing the system

Eligible Consumer • System design

• Network layout design

• Preparing Line diagrams

• Following technical standards

• Following utility guidelines

• Meeting with utility (if required)

• Assisting consumer in getting clearances /Approvals

• Educating/supporting consumer

System Installer

• Information manual

• Establishing multiple channels

• Drafting forms, formats etc.

• Invite/ Accept applications

• System Study, load flow study

• Inspection, Monitoring

• Changes in metering and billing system

• Safety and Protection

Distribution Utility

29

Key Stakeholders of Net Metering

Interconnection Process

30

Step

-1

Information Access

Step

-2

Application Filling & Submission St

ep-3

General Application Screening Step

-4

Technical Application Screening

31

1. Utility will develop information channel to disseminate information to Eligible Consumers

2. Consumer will collate information and will evaluate other potential opportunities

3. Once consumer is convinced, will proceed to next stage of filling application

1. Consumer provides all the required information

2. Consumer submits the application form (online or in person)

3. Upon receiving utility provides acknowledgement receipt

4. Consumer tracks application status

1. Utility performs general screening based on information provided by the consumer

2. On clearing general screening consumer is required to provide details for technical screening

3. If general screening is not cleared, application will be rejected

1. Technical information provided by the consumer shall be evaluated

2. If utility finds it feasible it clears the application to next level

3. If utility find some complication it will suggest other possible options to consumers to proceed further

Major Steps for Interconnection

32

Step

-5

Document Submission

Step

-6

Modification required for interconnection St

ep-7

Interconnection Approval & Project Installation

Step

-8

Inspection & Commissioning

1. To evaluate the feasibility of interconnection, Utility will require additional Information from applicant

2. Electrical line diagram, Cert. from structural Engr., Ownership proof, Safety measures, grounding protection etc.

1. In case the application fails the technical screening, utility will suggest possible modification to accommodate the proposed interconnection

2. On acceptance of modification, The cost of modification shall be borne by the applicant

1. On finalising the modification in the proposed application utility shall approve the interconnection

2. Utility shall give go-a-head signal to consumer for project installation

3. Applicant will install the SRTPV facility on utility guidelines

1. On Completion of project installation, applicant will inform the utility for final inspection & Commissioning

2. Utility will perform final inspection clears the inspection test

3. Utility will synchronies and commission the plant

Major Steps for Interconnection

33

Procedure for Interconnection Approval – Fast track process Steps Fast Track Process

Eligibility

Consumer are eligible to take part in fast track process based on the following conditions • System Capacity • Module (type, Model, Standard, Manufacturers etc.) • Inverter (Model, Make, Technical specification etc.) • Voltage level (location, type of line at the Point of Interconnection) • Network Condition (Feeder Capacity, DT loading, Sub Station ) • Code, Standards, Certification Requirements

Application Review

Screening • Location of Interconnection, Equipment to be installed • Aggregate generation on proposed line including the proposed SRTPV • Proposed SRTPV, Inverter Specifications and Operation Parameters • Study of maximum fault current of distribution circuit • Study of impact on protective device and other equipment connected on the same

network • Study of type of Interconnect (Single or 3 phase) including line configuration and

transformer connections • Checking of phase imbalance, if Interconnection is single phase • Checking the limit of cumulative generation capacity on the network

Interconnection Agreement/PPA

(if Required)

• On passing the screening process, the utility approves the interconnection application and will sign interconnection agreement (depends on utility regulatory requirements for different consumer categories)

• If the application fails the screening, then the utility may provide another opportunity to make system modification and suggest way forward