DERC PROPOSAL ON NET METERING & CONNECTIVITY IN

RESPECT OF ROOFTOP SOLAR PV PROJECTS

1. Introduction: - Delhi has about 250 to 300 sunny days available and average solar
installation of 5.31 KWhr/day/sq.mtr. Delhi has around 30 lakh households and about 12
lakh commercial, industrial and other consumers. Delhi State has more than 700 Sq.
Kms. Of built-up area for the installation of PV systems. Setting up of large solar power
projects requires huge land space whereas availability of land is a major constraint in
Delhi. The prevailing scenario of declining trend in solar tariff and increasing retail tariff
across most consumer categories like residential, commercial and industrial consumers
would encourage consumers to install roof top solar systems. . Therefore, roof top solar
is set to witness appreciable scaling of capacities in Delhi.
Keeping the model regulation issued by the FOR, the Commission has decided to
issue this proposal on NET-metering and LT connectivity for inviting
comments/suggestions from stakeholders.
2.0 Net-metering: The net metering based rooftop solar projects facilitates the
self-consumption of electricity generating by the rooftop project and allows for feeding
the surplus into the network of the distribution licensee. The type of ownership
structure for installation of such net metering based rooftop solar systems becomes an
important parameter for defining the different rooftop solar models. In the international
context, the rooftop solar projects have two distinct ownership arrangements.
- Self-owned arrangement wherein rooftop owner also owns the PV system.
- Third party ownership in which a developer owns the PV system and also enters into
a lease/commercial arrangement with the rooftop owner.

Both these models are relevant in Delhi context as defined below:-

2.1 Self-owned, net metering based rooftop PV: In a self owned, net metering
based rooftop PV model, the rooftop owner, who is also the electricity consumer for the
utility installs the rooftop solar system, either on its own or with the help of a system
supplier and installer. The electricity generated by the system is first used to service
consumer’s captive load within the rooftop owner’s premises. The solar power generated
in excess of the owner’s electricity consumption is fed into the grid through a net-meter,
which is a bi-directional energy meter capable of registering both import and export of
electricity. This net generation is then credited to the owner’s account and adjusted
subsequently against imports from the grid.

2.2 Third party owned Rooftop PV net metering model: In the third party owned
rooftop PV net metering model, the developers or intermediaries lease out solar PV
systems to interested rooftop owners. This can be a popular model for residential home
owners, where turnkey installers lease rooftop systems to individual owners who, in turn,
pay them a monthly lease rental. The owner of the house provides the rooftop and
commissions a turnkey installer to design and install the system. Alternatively, the
installers can also offer an integrated service of leasing, commissioning and maintaining

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 the systems to owners and guaranteeing standards of performance. The electricity
generated from such a system is used to meet the rooftop owner’s internal electricity
needs while the excess generation is fed into the grid on net metering basis. This model
has the following benefits.

- Benefits to rooftop owner: The household owner avoids large upfront investment for
the solar equipment and on occasion avoids assuming technology or performance
risk of solar systems. Net metering allows the rooftop owner to save on power
consumed from the grid to the extent of solar generation. A part of savings in power
consumption is shared with the developer by way of a lease rental.
- Benefits to developer: The leasing company generates revenues by way of lease
rental from the rooftop owner under a contract. As it continues to be owner of the
equipment, it also qualifies for claiming depreciation on the capital cost of the PV
systems with associated direct tax benefits.

However, a third party owned system, would result in an open access transaction with
implications of wheeling charges and surcharge relating to cross subsidy.

3.0 Net-metering :
The distribution licensee shall allow non-discriminatory net-metering arrangement on
first-cm-first serve basis for both self-owned and third party owned rooftop PV systems
as long as the total capacity (in MW) does not exceed the target capacity determined by
the Commission as given in Clause 3.4.

3.1 Interconnection arrangements:

Net-metering facility shall be extended to the solar power system installed in

establishments /consumers connected to the electrical grid. These consumers are the
“eligible consumers” for the purpose of net-metering. Interconnection framework for
net-metering shall address parameters including connecting voltage level, any minimum
technical standards for interconnection as indicated by the Commission in DRC (Terms
& Conditions for Determination of Tariff for Grid Connected Solar Photo Voltaic Project)
Regulations, 2013 and Delhi Electricity Supply Code, 2007 and as per technical
standards for Connectivity of Distributed Generation resources Regulations 2013
notified by Central Electricity Authority.

3.2 Capacity Limits

The capacity of an individual rooftop PV system would be the available capacity of the
service line connection, i.e. the sanctioned load of the consumer. The installation of net-
metered rooftop solar systems on consumer premises will utilize the same service line for
excess power injection into the Grid which is currently being used by the consumer for
drawl of power from utility network. If a higher capacity than the sanctioned load of the
consumer is installed, then the consumer would have to pay SLD charges as prescribed
in the DERC Supply Code & Performance Standards, 2007 for installation of new service
line and related infrastructure.

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 3.3 Application:

The consumer shall make an application in the prescribed format to the DISCOM along
with a fee of Rs.1000/- (Rupees Thousand). The consumer can download the solar net-
metering rooftop application form from the website of the DISCOMs. Permission will be
normally issued within 15 days from the date of submission of the application to the
DISCOM provided there is feasibility for connectivity.

3.4 Restrictions on level of overall or local grid penetration

Net-metering based rooftop solar systems are small capacity systems and can be
expected to proliferate fast when the policy and regulations are conducive. The impact
and level of proliferation of net-metering based rooftop would have an impact on the
local grid which has to address technical, safety and grid security issues arising out of
possible reverse flow of electricity in the local grids. The distribution licensee shall
provide net metering arrangement to all eligible consumers as long as the cumulative
capacity to be allowed for a particular distribution transformer shall not exceed 15% of
the capacity of the distribution transformer.

The distribution utility to which the latter category of consumers are connected can be
given the benefit of deemed RPO self-consumption of electricity by consumers who are
not defined as obligated entities under the RPO framework. This will encourage utilities
to facilitate implementation of small capacity net-metering based rooftop solar projects.
The quantum of electricity consumed by an eligible consumer, who is not defined as an
obligated entity from the rooftop solar system under net-metering arrangement shall
qualify as deemed Renewable Purchase Obligation (RPO) for the distribution licensee.

4. Metering:

(i) Two meters would have to be installed by the solar power generator. One is for
measuring solar generation and the other is for Import/Export measurement.
The first meter, the solar generation meter, has to be installed at the generator
end after the inverter at the ground floor of the premises to facilitate easy access
for meter reading. The point of solar power injection may be in between the load
and the Import/Export (Bi- directional) meter. The second meter is a bi-
directional meter (single phase or three phase as per requirement) and be
accepted for commercial settlements. These meters should be MRI and AMR
compliant. If the consumer wishes to have a record of the reading taken, he shall
be allowed to do so by the licensee. This meter will replace the existing consumer
meter. The first and the second meter have to be installed at the same location
where the present meter for consumption is installed. The cost of these meters
shall be borne by the consumer.
For connectivity at 11 kV level, the HT bi-directional meters with harmonic
measurement provision available shall be provided. Net-metering meter
configuration options with and without storage is furnished in Annexure- I (a)
and 1(b).

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(ii) The meters shall adhere to the standards for consumers specified by the
Authority in CEA Regulations on Installation and Operation of meters
Regulations, 2006 and (Installation and Operation of meters) Amendment
Regulations, 2010 as amended from time to time. The Solar Generation Meter
shall be of 0.2s class accuracy. The additional standards for single phase and
three phase bi-directional energy meters are furnished in Annexure - II. The
Solar check meters shall be mandatory for rooftop solar installations having
capacity of more than 20 KW. For installations size of less than and equal to 20
KW, the solar check meters would be optional. The cost of new/additional
meter(s) provided for the net-metering and the installation and testing charges
shall be borne by the eligible consumers. The Distribution Licensee shall
procure, test and install the meters. The eligible consumers may procure the
meters as per the relevant standards. Position & sealing of meters will be guided
by the same provisions as applicable to consumer meter in Distribution/Supply
Code. The meters installed shall be jointly inspected and sealed on behalf of
both the parties. In case, the eligible consumer is under the ambit of time of day
tariff, meters will be compliant for recording the time of day consumption and
generation.

(ii) Energy Accounting:

Electricity generated from a solar rooftop system shall be capped
cumulatively at 90% of the electricity consumption by the eligible consumer
at the end of settlement period which shall be the relevant financial year. In
case of COD during the year, the 90% capping shall be on the energy drawl by
the consumer from the date of COD to the end of the financial year. The carry
forward of excess energy generation will be allowed from one billing cycle to
the next billing cycle up-till the end of the same financial year and above
capping shall apply therein to allow for seasonality in generation. Any
excess generation (above 90 per cent) at the end of the financial
year would be considered as free energy and not offset against the
consumer’s consumption. There shall be no carry forward to next
financial year.
(iii) Billing and Payment
The consumer shall receive a net import/export bill indicating either net
export to the Grid or net import from the Grid.
In case of net import bill, i.e. electricity supplied by the distribution licensee
exceeds the electricity generated by the eligible consumers solar rooftop
system, the distribution licensee shall raise invoice for the net electricity
consumption after taking into account any carry forward from previous
billing periods in the same financial year.

The consumer shall settle the same as per existing norms. If it is a net export
bill, then credit amount shall be carried forward to next month for
adjustment against next month’s import bill. No interest will be payable on
this credit forward amount. Net credit available in account of the consumer

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 will be finally adjusted in April of the next year, subject to the cap stated
above.
If the eligible consumer is under the ambit of time of day tariff, the electricity
consumption in any time block peak, off-peak or normal shall be first set off
with the solar generation in the same time block. Any excess generation over
consumption in any time block, over and above the usage in that time block
shall be adjusted at the lowest applicable tariff across all the slots. This will
safeguard the interest of the utility.

4.0 LT Connectivity

(i) Capacity Limits & Interconnection Voltage

The maximum capacity for interconnection with the grid at a specific
voltage level shall be as specified in the Distribution Code/Supply code
and amended from time to time. The interconnecting voltage level of the
SPGs for various capacity ranges shall be as follows:

Capacity range Connecting voltage

Upto 10 kW 240V-single phase or 415V-three
phase at the option of the
consumer
Above 10kW and upto 100 415V – three phase
kW
Above 100kW At HT/EHT level

The maximum permissible capacity for rooftop shall be 1 MW for a single net-
metering point.
(ii) Important clauses related to the technical and interconnection
requirements are provided below:-

Parameter Reference Requirement

Overall conditions of State Distribution/Supply Reference to State
service Code Distribution Code
Overall Grid Standards Central Electricity Reference to regulations
Authority(Grid Standard)
Regulations 2010
Equipment BIS / IEC / IEEE Reference to standards
Meters Central Electricity authority Reference to regulations
(Installation & operation of and additional conditions
meters) Regulation 2006 issued by the Commission.
Safety and supply Central Electricity Reference to regulations
Authority(measures of
safety and electricity
supply) Regultions,2010
Harmonic
Requirements
Harmonic Current IEEE 519 Harmonic current

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 CEA (Technical Standards injections from a
for Connectivity of the generating station shall not
Distributed Generation exceed the limits specified
Resources) Regulations in IEEE 519
2013

Synchronization IEEE 519 Photovoltaic system must

CEA (Technical Standards be equipped with a grid
for Connectivity of the frequency synchronization
Distributed Generation device. Every time the
Resources) Regulations generating station is
2013 synchronized to the
electricity system. It shall
not cause voltage
fluctuation greater than
+/- 5% at point of
connection.
Voltage IEEE 519 The voltage-operating
CEA (Technical Standards window should minimize
for Connectivity of the nuisance tripping and
Distributed Generation should be under operating
Resources) Regulations range of 80% to 110% of
2013 the nominal connected
voltage. Beyond a clearing
time of 2 second, the
photovoltaic system must
isolate itself from the grid.

Flicker IEEE 519 Operation of Photovoltaic

CEA (Technical Standards system should not cause
for Connectivity of the voltage flicker in excess of
Distributed Generation the limits stated in IEC
Resources) Regulations 61000 standards or other
2013 equivalent Indian
standards, if any.
Frequency IEEE 519 When the Distribution
CEA (Technical Standards system frequency deviates
for Connectivity of the outside the specified
Distributed Generation conditions (50.5 Hz on
Resources) Regulations upper side and 47.5 Hz on
2013 lower side), There should
be over and under
frequency trip functions
with a clearing time of 0.2
seconds.

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DC injection IEEE 519 Photovoltaic system should
CEA (Technical Standards not inject DC power more
for Connectivity of the than 0.5% of full rated
Distributed Generation output at the
Resources) Regulations interconnection point or
2013 1% of rated inverter output
current into distribution
system under any
operating conditions.

Power Factor IEEE 519 While the output of the

CEA (Technical Standards inverter is greater than
for Connectivity of the 50%, a lagging power
Distributed Generation factor of greater than 0.9
Resources) Regulations should operate.
2013

Islanding and IEEE 519 The photovoltaic system in

Disconnection CEA (Technical Standards the event of fault, voltage
for Connectivity of the or frequency variations
Distributed Generation must island/disconnect
Resources) Regulations itself within IEC standard
2013 on stipulated period.

Overload and Overheat IEEE 519 The inverter should have

CEA (Technical Standards the facility to automatically
for Connectivity of the switch off in case of
Distributed Generation overload or overheating
Resources) Regulations and should restart when
2013 normal conditions are
restored.
Paralleling Device IEEE 519 Paralleling device of
CEA (Technical Standards photovoltaic system shall
for Connectivity of the be capable of withstanding
Distributed Generation 220% of the normal
Resources) Regulations voltage at the
2013 interconnection point.

(iv) Operation and Maintenance

1. The solar plant shall comply with the relevant standards specified by
the MNRE /BIS and CEA. The responsibility of operation and
maintenance of the solar photo voltaic (SPV) generator including all
accessories and apparatus lies with the consumer. The design and
installation of the rooftop SPV should be equipped with appropriately
rated protective devices to sense any abnormality in the system and
carry out automatic isolation of the SPV from the grid. The inverters
used should meet the necessary quality requirements and should be

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 certified for their quality by appropriate authority; the protection
logics should be tested before commissioning of the plant. Safety
certificates for the installations should be obtained from the
appropriate authorities.
2. The automatic isolation or islanding protection of SPV should be
ensured for, no grid supply and low or over voltage conditions and
within the required response time. Adequate rated fuses and fast
acting circuit breakers on input and output side of the inverters and
disconnect/isolating switches to isolate DC and AC system for
maintenance shall be provided. The consumer should provide for all
internal safety and protective mechanism for earthing, surge, DC
ground fault, transients etc.
3. To prevent back feeding and possible accidents when maintenance
works are carried out by DISCOM personnel, Double pole/Triple pole
isolating disconnect switches which can be locked by DISCOM
personnel should be provide. This is in addition to automatic sensing
and isolating on grid supply failure etc and in additional internal
disconnect switches. In the event of DISCOM LT supply failure, the
promoter has to ensure that there will not be any solar power being
fed to the lT grid of DISCOM. The consumer is solely responsible for
any accident to human beings/animals whatsoever (fatal/non
fatal/departmental/non departmental) that may occur due to back
feeding from the SPV plant when the grid supply is off. DISCOM
reserves the right to disconnect the installation at any time in the
event of damage to its grid, meter, etc. or to prevent accident or
damage.
4. The consumer shall abide by all the codes and regulations issued by
the Commission to the extent applicable and in force from time to
time. The consumer shall comply with DERC/DISCOM/CEA
requirements with respect to safe, secure and reliable function of the
SPV plant and the grid. The power injected into the grid shall be of
the required quality in respect of wave shape, frequency, absence of
DC components etc.
5. The SPG shall restrict the harmonic generation within the limit
specified in the agreement or specified by the Central Electricity
Authority as and when such regulation is issued.
6. The SPG (individual homes/commercial establishments) may
establish LT grid interactive solar power plant in the roof top or
surface level with the following options:
1. Grid interactive solar PV system without battery.
2. Grid interactive solar PV system with battery back up.

When the consumer prefers LT connectivity without battery backup

(full load backup/partial load backup), the inverter shall have separate
backup wiring to prevent the battery/DG power to flowing into the

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 grid in the absence of grid supply and manual isolation switch shall
also be provided. The manual isolation switch shall have locking
facilities to enable DISCOM personnel to keep it switched off and
locked during maintenance works.

7. The inverter standard shall be such that it should not allow solar
power/battery power/DG power to extend to DISCOM’s LT grid on
failure of DISCOM’s grid supply, irrespective of the LT connectivity
options. The required inverter standard for three phase and single
phase solar power are furnished in Annexure-III.

8. The inverter should be a sine wave inverter. Harmonic standards

shall be as per IEEE 519. To avoid DC injection into the grid and to
ensure other power quality parameters, the AC output of the inverter
shall be connected through an Isolation Transformer to the grid.

9. Application for SPV connectivity shall be submitted to the concerned

section officer alongwith registration charges applicable to that
category of consumer specified in the relevant order of the
Commission.

10. The net-metering connection agreement is furnished in Annexure-IV,

6. Applicability of Renewable Energy Certificates and RPO

Net-metering injection is not eligible for REC. The quantum of electricity

consumed by an eligible consumer, who is not defined as an obligated
entity from the rooftop solar system under net-metering arrangement
shall qualify as deemed Renewable Purchase Obligation (RPO) for the
distribution licensee.

7. Applicability of other charges

Third party owned systems installed within consumer premises may fall
under the ambit of sale of electricity on open access, thus inviting charges
related to wheeling and surcharge related to cross subsidy. Also net-
metering based systems owing to their connectivity to grid and banking of
electricity can also come under the purview of banking and wheeling
charges etc. In order to promote the third party owned systems and avoid
complexities around evaluation and monitoring of
wheeling/banking/open access charges, the net metering rooftop solar
arrangements are specifically exempted from these charges.

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Sd/-
(Jayshree Raghuraman)
Secretary