DERC to fix Renewable Energy tariffs

Net Metering regulations will be announced in the Indian capital of Delhi, the next week. The tariffs for renewable energy will be then notified by the Delhi Electricity Regulatory Commission (DERC). Net metering enables the consumers to reduce their electricity bill burden by supplying the extra electricity generated to the grid. But the rate at which they sell this electricity will determine the actual amount of profit. This rate is expected to be announced early next week, before the net metering regulations are notified.

This renewable energy tariff is expected to be approximately Rs 6-9 per unit. This rate is a bit on the higher side, since renewable energy is supposed to be an expensive affair. This is seen as an alarming factor for the power companies. Another problem is that of infrastructure like new lines, feeders etc. Also installation costs are high.

This scheme will also provide several benefits to the consumers. The system can either be installed themselves or through a third party. The consumer will get 30% subsidy on the amount of capital being provided by MNRE. The cost of battery storage will also be avoided, since the system will be connected to the grid. The energy generated will be granted exemption from PPAC charges and any other escalation costs. There are also no wheeling, cross subsidy surcharge or any other charge at the moment.

Source: The Times of India daily newspaper