DERC (Net Metering For Renewable Energy) Regulations, 2014

Brief Note on DERC (Net Metering For Renewable Energy) Regulations, 2014

1. Net Metering – The Need

There is a need to promote Renewable Energy technologies as per EA, 2003, National Action Plan on Climate Change, National Tariff and Electricity Policy and various other schemes of government. DERC (Net Metering for  Renewable  Energy)  Regulations,  2014,  is  a  step  forward  in  this  direction  to  create  regulatory environment conducive to promote Renewable energy, which should create sustainable environment, encourage emission free technologies & also be end user friendly for their active participation in distributed generation from Renewable Energy sources.

2. The Scheme

The Scheme will allow the Consumer to:

  • Install, either by himself or through a third party, a Renewable Energy System for connectivity with the power supply system of Distribution Company in the area.
  • Inject  surplus  energy,  if  any,  in  to  the  grid,  and  carry  it  forward  as  energy credits,  which  he  can subsequently draw back within the financial year.
  • Provide compensation for surplus energy, which the consumer is unable to draw back within the financial year.
  • No Wheeling, Cross Subsidy Surcharge & other charges for the time being

3. Benefits to the participating Consumer

  • Besides Subsidy @ 30% of the capital cost presently being provided by MNRE, the Renewable Energy System Installed under this scheme will be grid connected, whereby cost of storage Battery can also be avoided to make it affordable.
  • Energy generated from such Renewable Energy sources will :

o  Not attract PPAC charges.

o  Be insulated from some of the escalation factors resulting in Stability on Energy charges.

4. Overall Benefits

Utility Participants Consumers Other Consumers
No loss/benefit Benefited      up      to      the      units imported from Grid Benefited as avoided RPO cost
Distribution Loss
Benefited       by       reduction       inDistribution losses to meet target Benefited      up      to      the      units imported from Grid. Saving  due to reduced distribution losses
Transmission Loss
No loss/benefit Benefited      up      to      the      units imported from Grid. Saving                due        to        reduced transmission losses
Energy Security
No input fuel cost & sustainable energy source
Reliance on Grid
Onsite generation reduces the dependence on grid during grid failure and helps in Islanding Scheme

Click below links for the full documents

Brief on Net Metering Delhi Electricity Regulatory Commission (Net Metering for Renewable Energy) Regulations, 2014

Renewable Energy Net Metering Regulations 2014


About Ritesh Pothan

Ritesh Pothan, is an accomplished speaker and visionary in the Solar Energy space in India. Ritesh is from an Engineering Background with a Master’s Degree in Technology and had spent more than a decade as the Infrastructure Head for a public limited company with the last 9 years dedicated to Solar and Renewable Energy. He also runs the 2 largest India focused renewable energy groups on LinkedIn - Solar - India and Renewables - India
This entry was posted in DERC, DISCOM, Grid Interactive Distributed Solar Energy Systems, India, PV, Residential, Rooftop, Solar, Transmission and Distribution and tagged , , , , , , , , . Bookmark the permalink.