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The decision could help companies move forward with rooftop solar projects by removing approval confusion.
Photo Credit: iStock
Businesses in Andhra Pradesh, India, may have an easier time putting rooftop solar to work behind their electricity meters, potentially cutting energy costs without some of the approval hurdles that had been slowing projects down.
A new decision from the state regulator clarified how captive solar installations can be deployed while still requiring utilities to stay informed for grid safety and planning.
According to SolarQuarter, the Andhra Pradesh Electricity Regulatory Commission has released practice directions for rooftop solar panels installed on the customer’s side of the meter and used to power that customer’s own operations.
The action came after stakeholders served by the Eastern Power Distribution Company of Andhra Pradesh raised concerns about administrative delays and synchronization-related approvals for solar capacity installed on the customer side of existing meters. In effect, businesses trying to use solar generation within their own premises had been facing procedural slowdowns.
Under the clarification, consumers may attach captive solar systems to their own internal bus bars without seeking prior consent, feasibility clearance, or line approval from distribution companies. The commission said Section 9(1) of the Electricity Act 2003 puts everything on the customer’s side of the meter under that customer’s control.
As a result, customers can configure those internal arrangements to suit their engineering needs, including choosing voltage levels and using multiple inverter connections, so long as applicable safety requirements are followed.
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Behind-the-meter solar is particularly important for industrial and commercial users because it can reduce reliance on expensive grid electricity during daytime operations. By generating power on-site, businesses may be able to lower operating costs, improve energy resilience, and cut pollution associated with conventional power generation.
The order also settles questions about how these projects are treated commercially, not just technically. According to SolarQuarter, cross subsidy surcharges and additional surcharges do not apply to behind-the-meter rooftop solar systems. It said that exemption extends to projects built through third-party investment or other external financing arrangements.
Avoiding those surcharges could be a major factor for consumers. At the same time, SolarQuarter reported that systems must be operated during synchronization so that no power is exported into the main grid.
Consumers still remain liable for any regulated capacity charges set by the commission, while the utility may request reasonable service charges through standard retail tariff proceedings.
The regulator’s directions look to balance two priorities: making clean energy adoption easier and preserving orderly grid operations. Utilities no longer have to sign off on the design of a consumer’s private behind-the-meter setup, but the relevant distributor must still be informed before a solar system is interconnected or islanded.
According to SolarQuarter, consumers are required to submit technical details, such as their system’s size and a diagram of how it’s wired, to help utilities with demand forecasting and grid management.
Connecting to the grid first and notifying the utility later can trigger penalties under Sections 142 and 146 of the Electricity Act 2003.
On-site rooftop solar for self-use has become easier to pursue in Andhra Pradesh, especially for businesses looking to control electricity costs without paying open-access-style surcharges on power generated within their own premises.
If the decision is implemented smoothly, it could help companies move forward with rooftop solar projects by removing approval confusion and confirming surcharge exemptions. That may support wider use of distributed renewable energy across Andhra Pradesh while giving businesses more control over their electricity bills.
Andhra Pradesh isn’t the only place trying to make on-site solar easier to use. Officials in New Hampshire, New York, and Colorado are exploring similar ways to expand behind-the-meter access without long approval processes or added hurdles.
• In New Hampshire, lawmakers adopted plug-in solar without utility approval or extra fees.
• In New York, officials could allow residents to install balcony solar without utility approval.
• In Colorado, officials are removing barriers and red tape for plug-in solar access.
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