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Union MSME Minister Advocates Net Metering for Solar Rooftop

Union micro, small and medium industries Minister, Mr. Nitin Gadkari in a letter to Power Minister, Mr. R K Singh urged to reconsider decision to restrict net metering in Solar Rooftop projects. Union Power Ministry recently issued a gazette notification directing states to allow net metering only for solar rooftop projects with capacity lower than 10 KW. Solar Rooftop projects with more than 10 KW capacity had to move to gross metering.

Under net metering if the solar rooftop plant owners are grid-connected they could supply and receive power from distribution companies through the same meter and pay only for extra units consumed. Under gross metering, power bought and sold are metered differently. Discoms in many states were against net metering, arguing that the system robs them of legitimate revenue.

Most of the MSMEs who have installed solar rooftop are above 10 KW capacity and the payback time for their rooftop installation will be thrice after gross metering. Mr. Gadkari mentioned that gross metering will not only increase extra burden on already suffering MSMEs but also discourage further rooftop installation hence decrease in green energy.