Background
Assam Electricity Regulatory Commission (Grid Interactive Solar PV Systems) Regulations, 2019 were notified by the Assam Electricity Regulatory Commission (AERC) under the Electricity Act, 2003, repealing the Commission’s earlier 2015 regulations on the subject. They set out the framework under which eligible consumers in Assam may install grid interactive rooftop solar photovoltaic systems of 1 kWp to 1,000 kWp within their premises, whether self-owned or owned by a third party, and connect them to the distribution licensee’s network. The Regulations introduce NET metering and EXIM (export–import) metering arrangements, prescribe capacity limits at the consumer and distribution-transformer level, lay down interconnection, metering and protection standards with reference to the Central Electricity Authority regulations, provide for monthly energy accounting, carry-forward of credits and annual settlement of surplus injection at the Commission-approved Average Power Purchase Cost (APPC), allow solar generation to count towards Renewable Purchase Obligations, exempt such systems from wheeling charges and cross subsidy surcharge, and require every consumer to execute the NET/EXIM Metering Connection Agreement prescribed in Annexure-I, which contains detailed technical, power-quality, safety, access, cost and termination conditions.
The Regulations have been amended twice. The First Amendment, 2024 (Notification No. AERC.608/2017/75 dated 18 June 2024, published in the Assam Gazette on 29 June 2024) substituted Regulation 6.3, raising the individual capacity cap for both LT and HT consumers from 80% to 100% of connected load or contract demand, raising the cumulative cap at a distribution transformer from 20% of peak capacity to 80% of transformer capacity, and omitting the separate 20% cumulative cap for HT consumers at the 33/11 kV sub-station. The Second Amendment, 2024 (Notification No. AERC.608/2017/91 dated 13 December 2024, published in the Assam Gazette on 18 December 2024) substituted Regulation 4, adding Gross metering alongside NET and EXIM metering, making the arrangement requested by the consumer final, and requiring the distribution licensee to provide net metering for loads up to 10 kW and gross metering for loads above 10 kW.
Applicability
The Regulations apply to the distribution licensee in Assam, which must offer NET, EXIM or Gross metering on a non-discriminatory, first-come-first-serve basis, publish transformer-level hosting capacity, ensure interconnection and metering conform to CEA standards, provide the connection agreement in advance, and carry out monthly energy accounting, billing, credit carry-forward, APPC-based settlement and meter-reading obligations; to the supplier, which must inform consumers of the specifications of required components; and to LT and HT eligible consumers (and third-party owners) installing grid interactive solar PV systems within their premises, who must keep within the prescribed capacity limits, obtain Electrical Inspectorate and other clearances, execute the Annexure-I Connection Agreement, install compliant meters and protective devices, meet the specified power-quality and safety standards, allow the Discom access, bear all connection costs and follow the prescribed breach and termination procedure, with EXIM-metered consumers who are obligated entities also entitled to count their generation towards their own RPO and to participate in the REC mechanism.
Compliance Requirement Under the act in Accordance with Regulations:
The distribution licensee may adopt either the NET metering, EXIM metering or Gross metering arrangement in accordance with the policy directions of the Government of Assam, and shall offer such arrangement to consumers who intend to install a grid connected solar system in its area of supply on a non-discriminatory and first-come-first-serve basis. The metering arrangement requested by the consumer shall be final under that distribution licensee, and the distribution licensee shall provide net metering for loads up to ten kW and gross metering for loads above ten kW.
The distribution licensee shall update the distribution transformer level capacity available for connecting rooftop solar systems under the NET/EXIM metering arrangement on a yearly basis, and shall provide this information on its website as well as to the Commission.
The cumulative capacity of grid connected rooftop solar plants to be allowed at a particular distribution transformer shall not exceed 80% of the capacity of the distribution transformer or any transformer. However, there shall be no restriction on State Generating Companies or the distribution licensee installing bigger plants, subject to their compatibility with the system and necessary safety measures being taken. This limit was substituted by the First Amendment, 2024; previously, the cap was 20% of the peak capacity of the distribution transformer for LT consumers and 20% of the peak capacity of the 33/11 kV sub-station for HT consumers.
The distribution licensee shall ensure that the interconnection of the solar energy system with its distribution system conforms to the specifications and standards provided in the Central Electricity Authority (Technical Standards for Connectivity of the Distributed Generation Resources) Regulations, 2013, as amended from time to time.
The distribution licensee shall ensure that the interconnection of the solar energy system with its distribution system conforms to the relevant provisions of the Central Electricity Authority (Measures relating to Safety and Electric Supply) Regulations, 2010, as amended from time to time. The 2010 Regulations have since been superseded by the Central Electricity Authority (Measures relating to Safety and Electric Supply) Regulations, 2023.
The distribution licensee shall ensure that the NET meter or EXIM meter installed conforms to the standards, specifications and accuracy class provided in the Central Electricity Authority (Installation and Operation of Meters) Regulations, 2006, as amended from time to time, and is installed in such a way that it is accessible for reading.
While ascertaining the feasibility and eligibility of interconnecting a consumer’s grid interactive system, the licensee shall duly consider conformity with the technical, safety and metering requirements specified in Regulation 7(1).
The supplier shall inform the eligible consumer of the specifications and such other details of the components, including the meter and the protective devices, required to be installed along with the solar energy system.
The licensee shall provide in advance to an interested prospective eligible consumer a copy of the RTSPV Connecting Agreement annexed as Annexure-I to the Regulations, which incorporates the technical, interconnecting, safety and other requirements to be fulfilled by the consumer for setting up such a system.
Under the NET metering arrangement, for each billing period the licensee shall give the consumer, along with the electricity bill, a statement of accounts of electricity showing: (i) the quantum of banked electricity carried forward from the previous billing period; (ii) the quantum of electricity injected into the distribution system by the eligible consumer; (iii) the quantum of electricity supplied by the distribution licensee to the eligible consumer; and (iv) the quantum of net electricity billed for payment to the eligible consumer.
Where the electricity injected by a net-metered consumer exceeds the electricity consumed during the billing period, the distribution licensee shall carry such excess forward to the next billing period as electricity credit, which may be utilised to net electricity injected or consumed in future billing periods.
Where the electricity supplied by the distribution licensee during any billing period exceeds the electricity generated by the eligible consumer’s solar system, the distribution licensee shall raise a bill only for the net electricity consumption, after taking into account any electricity credit balance remaining from previous billing periods.
Excess electricity measured in kilowatt-hours may only be utilised to offset consumption measured in kilowatt-hours, and may not be utilised to compensate any other fees and charges imposed by the distribution licensee as per the instructions of the Commission.
At the end of the settlement period, where there is excess electricity injected by the eligible consumer, the licensee shall pay for the same at the Average Power Purchase Cost (APPC) of electricity as approved by the Commission. Settlement under the NET metering system shall be made within one year or by 31 March of the next year, whichever is earlier.
At the beginning of each settlement period, the cumulative carried-over injected electricity shall be reset to zero. This applies to both the NET metering arrangement under the proviso to Regulation 8.2 and the EXIM metering arrangement under Regulation 8.6.
Under the EXIM metering arrangement, the energy consumed by the consumer from the grid during a month shall be billed as per the prevailing tariff applicable to the consumer’s category.
The amount due to the consumer on account of injection of solar energy into the grid shall be arrived at by considering 100% of the APPC rate, and this amount shall be adjusted against the monthly bill.
No payment shall be made by the DISCOM for any excess energy injected from the rooftop solar plant into the grid beyond 90% of the energy consumed from the grid during the billing cycle.
The quantum of electricity generated from the solar energy system of an eligible consumer under the NET metering arrangement shall qualify for accounting towards the Renewable Purchase Obligation (RPO) of the distribution licensee under the AERC (Renewable Purchase Obligation and its Compliance) Regulations, 2010.
An eligible consumer under the EXIM metering arrangement shall be eligible to participate in the Renewable Energy Certificate (REC) mechanism as specified under the CERC (Terms and Conditions for Recognition and Issuance of Renewable Energy Certificate for Renewable Energy Generation) Regulations, 2010 and subsequent amendments thereto.
A grid solar system under the NET/EXIM metering arrangement installed on eligible consumer premises, whether self-owned or third-party owned, shall be exempted from wheeling charges and cross subsidy surcharge when open access is allowed to the concerned entity.
The solar panel capacity of a grid interactive solar system to be installed at any eligible consumer’s premises shall be between 1 kWp and 1,000 kWp. For LT category consumers, the solar panel capacity of any individual consumer shall be limited to 100% of the connected load or contract demand wherever interconnection with the grid is technically feasible, provided that the cumulative capacity of grid connected rooftop solar plants allowed at a particular distribution transformer shall not exceed 80% of the capacity of the distribution transformer or any transformer. The individual cap was raised from 80% to 100% by the First Amendment, 2024.
The solar panel capacity of a grid interactive solar system to be installed at any eligible consumer’s premises shall be between 1 kWp and 1,000 kWp. For HT category consumers, the solar panel capacity of any individual consumer shall be limited to 100% of the connected load or contract demand wherever interconnection with the grid is technically feasible, provided that the cumulative capacity of grid connected rooftop solar plants allowed at a particular distribution transformer shall not exceed 80% of the capacity of the distribution transformer or any transformer. The First Amendment, 2024 raised the individual cap from 80% to 100% and removed the earlier 20% cumulative cap at the 33/11 kV sub-station.
The eligible consumer shall obtain the necessary clearance or approval for commissioning a grid interactive system from the State Electrical Inspectorate, depending on the size of the solar generator and the voltage of supply, as required under Regulations 32 and 43 respectively of the Central Electricity Authority (Measures relating to Safety and Electric Supply) Regulations, 2010 and the Rules and Regulations notified by the State Government. The 2010 Regulations have since been superseded by the CEA (Measures relating to Safety and Electric Supply) Regulations, 2023.
The quantum of electricity generated from the solar energy system of an eligible consumer under the EXIM metering arrangement shall qualify for accounting towards the Renewable Purchase Obligation (RPO) of such consumer, where the consumer is an obligated entity under the AERC (Renewable Purchase Obligation and its Compliance) Regulations, 2010.
The meter reading taken by the distribution licensee shall form the basis of commercial settlement, and a copy of the meter reading statement of the net meter and solar meter shall be handed over to the consumer as soon as the meter reading is taken.
The distribution licensee shall specify the interface or interconnection point and the metering point for each grid interactive solar system, and under the Connection Agreement the eligible consumer agrees that these points will be specified by the Discom.
A solar grid interactive system installed in a premises may be owned by the consumer or by a third party. The eligible consumer may install a solar system which (a) shall be within the permissible rated capacity defined under the Regulations; (b) shall be located in the consumer’s premises; and (c) shall interconnect and operate safely in parallel with the distribution licensee’s network.
The interconnecting voltage level of the grid interactive system for various capacity ranges shall be as per the relevant provisions of the AERC (Electricity Supply Code and Related Matters) Regulations, 2017, as amended from time to time.
The eligible consumer agrees to obtain all necessary approvals and clearances, both environmental and grid connection related, before connecting the photovoltaic system to the distribution system.
An agreement shall be signed between the eligible consumer and the DISCOM regarding the setting up of the system under NET metering or EXIM metering, in the format annexed as Annexure-I to the Regulations, executed as an undertaking on Assam stamp paper worth Rs. 100.
A NET meter or EXIM meter shall be installed at the interconnection point of the eligible consumer with the network of the distribution licensee. The supply and installation of meters, action on defective meters and other matters related to meters shall be governed by the provisions of the AERC (Electricity Supply Code) Regulations, 2017, as amended from time to time.
A solar meter shall be installed at the delivery point of the solar energy system to measure the total solar electricity generated.
The meters shall be of accuracy class 0.5 or better, or as per the specifications notified by the competent authority.
The solar meter and NET meter shall preferably have the facility for downloading meter readings using a meter reading instrument (MRI), wireless equipment or such other devices.
The meters shall be tested, installed and sealed in accordance with the provisions of the Central Electricity Authority (Installation and Operation of Meters) Regulations, 2006, as amended from time to time. The meters shall be jointly inspected and sealed on behalf of both parties, and shall be tested and installed only in the presence of representatives of the consumer and the distribution licensee.
Safety requirements such as provision of islanding in case of grid failure and isolation of battery power supply when the grid is connected shall be incorporated in the solar PV plant. The eligible consumer agrees that, in case of a power outage on the DISCOM’s system, the photovoltaic system shall shut down unless special transfer and isolating capabilities have been installed on it.
A diagram of the actual installation indicating all components shall be conspicuously displayed at the solar PV plant.
The eligible consumer is required to be aware, in advance, of the standards and conditions the system must meet to be integrated into the grid or distribution system. The connection of the photovoltaic system to the DISCOM’s distribution system shall be bound by the requirements of the State Distribution Code and/or the DISCOM’s conditions of service, and the grid shall continue to perform with the specified reliability, security and quality as per the Central Electricity Authority Technical Standards for Connectivity of Distributed Generation Resources Regulations, as amended from time to time. The eligible consumer shall also conform to the specifications and standards applicable to solar PV systems as may be prescribed by the Ministry of New and Renewable Energy, Government of India, from time to time.
Prior to connecting the photovoltaic system to the DISCOM’s distribution system, the eligible consumer shall install an isolation device, both automatic and inbuilt within the inverter and as external manual relays, and shall allow the Discom access to and operation of it, if required, for repair and maintenance of the distribution system.
All equipment connected to the distribution system must be compliant with the relevant international (IEEE/IEC) or Indian (BIS) standards, and installations of electrical equipment must comply with the Indian Electricity Rules, 1956 and the Central Electricity Authority (Measures relating to Safety and Electric Supply) Regulations, 2010. Both of these instruments have since been superseded, and the operative instrument is now the CEA (Measures relating to Safety and Electric Supply) Regulations, 2023.
The eligible consumer agrees to adhere to the power quality measures prescribed under International or Indian standards and/or such other measures as may be provided by the Commission or the Discom. In particular, harmonic current injections from the generating station shall not exceed the limits specified in IEEE 519.
The eligible consumer agrees to adhere to the power quality measures prescribed under International or Indian standards and/or such other measures as may be provided by the Commission or the Discom. In particular, the photovoltaic system must be equipped with a grid frequency synchronisation device.
The eligible consumer agrees to adhere to the power quality measures prescribed under International or Indian standards and/or such other measures as may be provided by the Commission or the Discom. In particular, the voltage-operating window should minimise nuisance tripping and should be within an operating range of 80% to 110% of the nominal connected voltage, and beyond a clearing time of 2 seconds the photovoltaic system must isolate itself from the grid.
The eligible consumer agrees to adhere to the power quality measures prescribed under International or Indian standards and/or such other measures as may be provided by the Commission or the Discom. In particular, operation of the photovoltaic system should not cause voltage flicker in excess of the limits stated in the relevant sections of IEC standards or other equivalent Indian standards, if any.
The eligible consumer agrees to adhere to the power quality measures prescribed under International or Indian standards and/or such other measures as may be provided by the Commission or the Discom. In particular, when the distribution system frequency deviates outside the specified range of 50.5 Hz on the upper side and 47.5 Hz on the lower side, the photovoltaic system should not energise the grid and should shift to island mode.
The eligible consumer agrees to adhere to the power quality measures prescribed under International or Indian standards and/or such other measures as may be provided by the Commission or the Discom. In particular, the photovoltaic system should not inject DC power of more than 0.5% of full rated output at the interconnection point, or 1% of rated inverter output current, into the distribution system under any operating conditions.
The eligible consumer agrees to adhere to the power quality measures prescribed under International or Indian standards and/or such other measures as may be provided by the Commission or the Discom. In particular, while the output of the inverter is greater than 50%, the system should operate at a lagging power factor greater than 0.9.
The eligible consumer agrees to adhere to the power quality measures prescribed under International or Indian standards and/or such other measures as may be provided by the Commission or the Discom. In particular, in the event of voltage or frequency variations, the photovoltaic system must island or disconnect itself within the period stipulated in the IEC standards.
The eligible consumer agrees to adhere to the power quality measures prescribed under International or Indian standards and/or such other measures as may be provided by the Commission or the Discom. In particular, the inverter should have the facility to switch off automatically in case of overload or overheating, and shall restart when normal conditions are restored.
The eligible consumer agrees to adhere to the power quality measures prescribed under International or Indian standards and/or such other measures as may be provided by the Commission or the Discom. In particular, the paralleling device of the photovoltaic system shall be capable of withstanding 220% of the nominal voltage at the interconnection point.
The eligible consumer agrees to furnish all data, such as voltage, frequency, and breaker and isolator positions in his system, as and when required by the Discom, and may also endeavour to provide facilities for online transfer of operational data.
Eligible consumers shall not use a hybrid inverter, that is, a solar inverter with a provision for feeding power to the grid.
The eligible consumer shall comply with the provisions of the Central Electricity Authority (Measures relating to Safety and Electric Supply) Regulations, 2010 and the relevant provisions of the National Electrical Code, particularly those relating to solar PV installations. The 2010 Regulations have since been superseded by the CEA (Measures relating to Safety and Electric Supply) Regulations, 2023.
The solar system shall interconnect and operate safely in parallel with the distribution licensee’s network, and the eligible consumer agrees that the design, installation, maintenance and operation of the photovoltaic system shall be performed in a manner conducive to the safety of both the photovoltaic system and the DISCOM’s distribution system.
In view of the DISCOM’s obligation to maintain a safe and reliable distribution system, where the Discom determines that the eligible consumer’s photovoltaic system causes damage to, and/or produces adverse effects affecting, other consumers or the DISCOM’s assets, the eligible consumer shall disconnect the photovoltaic system from the distribution system immediately upon direction from the Discom and correct the problem at his own expense prior to reconnection.
The Discom shall have access at all times to the metering equipment and to the disconnecting means of the photovoltaic system, both automatic and manual. In an emergency or outage situation where there is no access to a disconnecting means, such as a switch or breaker, the Discom may disconnect service to the premises.
The eligible consumer shall bear all costs related to setting up the photovoltaic system, including metering and interconnection costs and the cost of interconnection equipment such as isolators and meters, and agrees to pay the actual cost of any modifications and upgrades to the distribution facilities required to connect the photovoltaic system.
Where the eligible consumer breaches a term of the Connection Agreement, he shall remedy the breach within 30 days of receiving written notice of the breach from the Discom, failing which the Discom has the right to terminate the Agreement on 30 days’ prior written notice.
The eligible consumer may terminate the Connection Agreement at any time by giving the Discom 90 days’ prior notice.
Upon termination of the Connection Agreement, the eligible consumer must disconnect the photovoltaic system from the DISCOM’s distribution system in a timely manner and to the DISCOM’s satisfaction.
Penalty & Consequences
Section 142 of the Electricity Act, 2003 — Penalty for non-compliance of directions by the Appropriate Commission
Where a complaint is filed before the Appropriate Commission by any person, or where the Commission is satisfied that any person has contravened any provision of the Act or the rules or regulations made under it, or any direction issued by the Commission, the Commission may, after giving such person an opportunity of being heard, by order in writing direct that, without prejudice to any other penalty to which he may be liable under the Act, such person shall pay by way of penalty an amount of not less than ten thousand rupees, which may extend to five lakh rupees, for each contravention, and, in the case of a continuing failure, an additional penalty of not less than one thousand rupees, which may extend to ten thousand rupees, for every day during which the failure continues after contravention of the first such direction.
Section 146 of the Electricity Act, 2003 — Punishment for non-compliance of orders or directions
Whoever fails to comply with any order or direction given under the Act within the time specified in such order or direction, or contravenes, attempts to contravene or abets the contravention of any provision of the Act or any rules or regulations made under it, shall be punishable with a fine of not less than ten thousand rupees, which may extend to ten lakh rupees, in respect of each offence, and, in the case of a continuing failure, with an additional fine of not less than one thousand rupees, which may extend to fifty thousand rupees, for every day during which the failure continues after conviction for the first such offence. This section does not apply to orders, instructions or directions issued under Section 121.
Annexure-I, Clause 9.2 of the AERC (Grid Interactive Solar PV Systems) Regulations, 2019 — Termination of Connection Agreement for breach
The Discom has the right to terminate the NET/EXIM Metering Connection Agreement on 30 days’ prior written notice if the eligible consumer breaches a term of the Agreement and does not remedy the breach within 30 days of receiving written notice of the breach from the Discom.
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