Punjab becomes first state to approve net-metering policy for solar power plants

Chandigarh, August 27, 2014: Punjab today achieved a new first by pioneering net-metering policy for installation of solar photovoltaic power plants.

Disclosing this here today, Punjab Revenue and Renewable Energy Minister Bikram Singh Majithia said the net metering policy would be applicable to all domestic, institutional, industrial, institutional and commercial consumers of Punjab State Power Corporation Limited (PSPCL).

He said under the policy, which had been formulated by the Department of New and Renewable Energy and Punjab Energy Development Agency (PEDA), all PSPCL consumers would have an option to install Solar Photovoltaic plants on their rooftop or vacant spaces in the capacity range of 1 KWp to 1000 KWp covering up to 80 per cent of their sanctioned load. He said the power generated from such solar plants would utilize the existing service lines and consumers would be able to offset their power consumption from the grid by producing solar power which would be accounted through bi-directional meters to be installed by PSPCL. The billing settlement period would be one year.

Majithia said the State government had set a target of 100 MW under Net Metering Policy for the next one year which will help the State to meet the peak load demand during the day when solar power generation will be available. He said that both PSPCL and PEDA would jointly implement this scheme and a special publicity campaign would be launched for the consumers as to the procedure, technology and EPC companies which will be providing turnkey solutions for installation of solar power plants in market driven mode.

Majithia said with fast depleting fossil fuel resources and prolonged litigation regarding allotment of coal fields, it had become imperative to promote solar energy as it was a green, clean and renewable energy and this technology was all set to be more viable in the long duration. He said solar roof top plants would serve the dual purpose of taking pressure off the State electricity utility during peak load hours besides reducing power bills of the consumers.

The Non Conventional Energy Minister further informed that 30 percent capital subsidy up to 500 KWp would be made available to the eligible individuals by PEDA depending upon the availability of funds on an year to year basis.

The Minister further said that 30 solar power projects having joint power generation capacity of 250 MW and investment of Rs. 2500 crore would be commissioned by January 2015 and connected with the grid. He said that special emphasis would be given at setting up of de-centralized solar power plants at the institutions and industries. Solar steam cooking plants at Gurdwara Baba Deep Singh Ji Shaheed, Solkhian and at Gurdwara Rara Sahib have already been installed in the state for replacing LPD and fossil fuel. He also informed that new technology for up-gradation of biogas to Bio-CNG plants has been started in the state and these projects would be up-scaled in the subsequent years to save LPG gas and CNG.