New and Renewable Energy Department Government of Madhya Pradesh

www.pwc.com

September 23, 2015

Draft Policy for Net-Metering based Solar Applications, Madhya Pradesh, 2015

Background

Net-Metering Policy – Key Highlights

Implementation Guidelines

Agenda

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Section 1

Background

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Background

Central Government has proposed capacity addition 40,000 MWp among all the states by 2022. (MNRE letter no: D.O. No. 03/13/2015-16/GCRT dated: 30th June 2015)

MP share of 2,200 MWp is 7th highest among all the states.

New & Renewable Energy Department, Govt. of Madhya Pradesh (MPNRED)/[MPUVNL] is the state nodal agency (SNA) for facilitating implementation of renewable energy projects in the state;

A draft Policy for Net-Metering based Solar Applications, Madhya Pradesh, 2015 has been prepared for the State of Madhya Pradesh;

The objective of the workshop is to highlight the provisions of the MP’s proposed draft Net-metering Policy and get feedback from the stakeholders.

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Section 2

Net-metering Policy – Key Highlights

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Objective of the Policy

To add broader community involvement and growth of decentralized and distributed Solar PV System;

To encourage job creation in the downstream SPV market segment;

To develop sustainable energy solution for future;

To provide further impetus to growth of clean technology in the state of Madhya Pradesh;

To reduce carbon emission.

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Operative Period

• Applicable from the date of its notification in the Madhya Pradesh Gazette.

Applicability & Eligibility

• All Solar-PV Technology based PPs adopting net-metering mechanism

• All categories of consumer using Solar-PV Technology (self owned or third-party owned) installed in the consumer premises.

• Eligible Consumer shall be as defined under MPERC Regulation 2014.

Where can the plants be set-up = “Consumer Premises”

• Places on rooftops, open space, walls, structure etc. of buildings / households, industries, offices, institutions, complexes, shared premises in residential complexes etc.

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Net-Metering Policy – Applicability

Net-Metering Policy – Technology & Connectivity

Capacity Cap & Technology

• Capacity limit at DTR level shall be defined/notified by concerned DISCOM

• The distribution licensee shall update on yearly basis the capacity available at distribution transformer level for connecting renewable energy systems under Net Metering arrangement

• Solar PV system with or without energy storage

Empanelment of Technology Facilitators/Developers/agencies

• Technology facilitator/developer/agencies would be empanelled by MPUVNL for implementing Solar-PV Technology by charging a token fees

Interconnectivity Norms

• Interconnection with the network of DISCOM shall be as per Central Electricity Authority’s (CEA) regulations {Measures relating to Safety and Electric Supply Regulations 2010 and subsequent amendments thereof}

Metering arrangement & Energy accounting

• It should conform to MPERC’s relevant regulation on Net-metering

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Power sale arrangement

• Solar RPO: If the consumer with Solar-PV Technology is not defined as obligated entity, then quantum of electricity generated shall qualify towards compliance of RPO for the concerned DISCOM

• After fulfilling captive consumption requirements, the surplus power shall be adjusted as per regulation of MPERC

Sharing of CDM Benefit

• The CDM benefits arising from Solar Energy generation from the solar-PV plant shall be retained by the consumer

Net-Metering Policy –Sale of Power & Revenues

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Fiscal incentives by GoMP

• Installation of Solar-PV Technology shall not be considered as construction activity; there shall be no additional liability of Property Tax for installation of Solar-PV plant on their rooftops or premises.

• Energy generated from Solar-PV plant would be exempted from Electricity duty

• Equipment purchased for Solar-PV Technology would be exempted from VAT and Entry tax

Other Incentives

• Exemption from Banking, Wheeling and cross subsidy surcharges shall be as per MPERC Regulations for Net Metering.

• Solar-PV plant under Net Metering can avail central Government Central financial assistance under MNRE’s relevant scheme

Net-Metering Policy – Incentives

Section 3

Implementation Guidelines

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Registration & Processing Procedure S. No.

Steps Responsibility Time frame Comments

1. Consumer can online apply or download application from MPUVN Website

Consumer - Application should be in correct format (FORMAT – I)

2.

Applicable can also be registered online. Filing of application by the consumer along with application fee or can submit offline to MPUVN

Consumer Day= T Application to be submitted in prescribed format to MPUVN

3

MPUVN will examine the application within seven working days and will forward to concerned DISCOM

MPUVN Day=T+7

In case there are any discrepancies in the application or it is incomplete, MPUVN shall inform the customer and get it completed, time taken in this process would be excluded from time available to MPUVN.

4.

Concerned official from DISCOM to conduct feasibility analysis and provide necessary approval, If installation is technically feasible (Approval is valid for period of 3 months from the date of Registration)

DISCOM

By (A=T+30) days from receipt of complete application

• Missing information to be sought to ensure the application is complete.

• Approval needs to be communicated to consumer within prescribed timeline.

• In case of dis-approval, the same should also be communicated to consumer with reasons thereof.

• DISCOM will accord approval on first come first serve basis. 9/28/2015 MPUVN 12

Registration & Processing Procedure

S. No. Steps Responsibility Time frame Comments

5.

The distribution licensee shall make the information available to the nodal office (MPUVN) through its website within 30 days of receipt of duly filled application

DISCOM By A=T+30 days

6.

Eligible Consumer shall avail connectivity / installation of the solar -PV system within 3 months from the date of Registration

Consumer

By B= A+3 months from the date of Registration

• Failing to install system within given timeframe leads to cancellation of registration

• DISCOM can allot such capacity to other applicant, strictly on first come first serve basis.

7.

DISCOM shall provide Commissioning Certificate to the nodal office and shall make the information available to the nodal office (MPUVN)

DISCOM Within 30 days of Commissioning

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Roles & Responsibilities of Key Stakeholders

GoMP

• Introduction of Policy to encourage Net-Metering in the State

• Provide applicable incentives to the consumers

SNA

• Nodal Agency for facilitating implementation of net-metering projects in MP

• Agency responsible for facilitating processing and routing the subsidy from MNRE to consumers / vendors.

• Empanelment of technology facilitators / developers / agencies

DISCOM

• Conducting feasibility study based on applications of consumers and giving approvals

• Inspection and approval of the system installed by consumers and allow synchronisation with grid

• Testing of meters purchased by consumer

• Monthly metering and billing based on net-metering concept

Consumer

• Filing of the application for approval of the Net-metering scheme

• Procurement and installation of equipment as prescribed by relevant agency like MNRE, MPNRED, DISCOMS, MPUVN with all mandatory safety precautions / features

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Your suggestions are welcome!

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Thank You Surendra Bajpai MP Urja Vikas Nigam Ltd. Bhopal www.mprenewable.nic.in Email: emc.mpuvn@gmail.com mduvnb@gmail.com