Net Metering Coming to India
Residents of Gujarat state in India will be able to sell electricity from their solar panels back to the grid system in several weeks. Gujarat is India’s leading solar power provider, so allowing net metering there is a big development.
It has been estimated that the introduction of net metering could increase the size of new solar power installations and the number of them by 50%. Selling solar power back to the electrical grid would be an obvious way for owners to make back some of their installation costs.
“If the electricity rates are attractive, the customers can either save money or even make money by exporting the electricity to the grid,” explained Madhavan Nampoothiri, director of RESolve Energy Consultants.
A pilot solar rooftop program in Gandhinagar, Gujarat’s capital, has been running for some time. It provides incentives to rooftop owners when they install rooftop photovoltaics.
Gujarat has been a leader within India and Asia in the renewable energy field. It has the first 500 MW solar power park in Asia and was the first state to have an energy agency to market a solar power cooker.
About eighty solar power projects have been commissioned in Gujarat.
The human population there is about sixty million and the state has a strong agricultural sector. It is also home to one of the largest oil refineries in the world. The Tato Nano, the world’s least expensive car, is also made there.
Image Credit: Uday Parmar
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This could result in zero electricity bills for most and create electric power for industry.
I Hope Gujarat have studied the numerous fiascos with FITs around the world, even retroactive changes. FITs have many advantages, starting with simplicity and transparency. But they are a long-term commitment, and the credibility of the guarantee is all-important. They will also need a sensible and objective degression formula – even the FIT poster child Germany got that bit wrong.