India’s push for renewable energy is gaining momentum, and innovative approaches like Virtual Net Metering (VNM) are playing a crucial role in expanding access to solar power. This concept, supported by the Ministry of New and Renewable Energy (MNRE), aims to overcome the limitations of traditional rooftop solar installations, enabling more consumers, especially in rural areas, to benefit from clean energy.
Understanding Virtual Net Metering
Virtual Net Metering (VNM) is an arrangement that allows multiple consumers within the same distribution licensee’s area to share the benefits of a single solar power plant. Unlike traditional net metering, where solar panels are installed on individual rooftops, VNM allows a group of consumers to install a common solar plant at a location of their choice, and the generated electricity is virtually distributed among them.
Key Features of VNM
-
Shared Generation: Electricity generated from a shared solar plant is virtually distributed among participating consumers.
-
Flexibility: Solar plants can be set up on any suitable land or rooftop within the distribution licensee’s area.
-
Wider Access: Overcomes limitations faced by consumers with inadequate roof space or other constraints.
-
Economies of Scale: Enables the installation of larger solar plants, leading to lower per-unit costs and higher efficiency.
-
Rural Focus: Particularly beneficial for residential consumers in rural areas with limited individual capacity.
Eligibility and Conditions
Under the Rooftop Solar (RTS) Programme Phase-II, the Central Financial Assistance (CFA) is applicable for solar plants set up under VNM arrangements, subject to the following conditions:
-
Residential Consumers in Rural Areas: CFA is available only for residential consumers in rural areas.
-
Capacity Limit: Each participating consumer is allowed to install capacity up to 3 kW.
-
Distribution Sub-Station: The solar plant must supply power to the same distribution sub-station through which the participating consumers are connected.
VNM Implementation Process
-
Demand Aggregation: A group of consumers decides to install a shared solar plant.
-
Application Submission: The group submits an application through the MNRE portal.
-
Feasibility and Capacity Sanction: The DISCOM assesses the feasibility and sanctions the capacity.
-
Plant Setup: A common solar plant is installed at a designated location.
-
Data Connectivity: Generation data is connected for virtual net metering.
-
Subsidy Disbursement: CFA is disbursed to the project developer/beneficiary.
-
Unit Allocation: The generated units are allocated to the participating consumers based on their shared capacity.
VNM Financial Models
The document outlines three financial models for VNM implementation:
-
Capital Investment (CAPEX) Model:
-
Consumers collectively fund the solar plant, and the electricity is distributed based on their investment share.
-
MNRE provides a subsidy of Rs. 14,558/- per kW, and the remaining cost is borne by the consumers.
-
-
RESCO Model:
-
A RESCO developer designs, builds, funds, and operates the solar plant.
-
Consumers pay the developer for the generated electricity, with DISCOM adjusting the units in consumer bills.
-
-
Utility Model:
-
Utilities set up solar plants in rural areas, reducing losses and providing reliable power.
-
The cost of solar power is reduced through VNM and government subsidies.
-
Current Status and Future Outlook
Virtual net metering is gaining traction in several Indian states and union territories, including:
-
Goa
-
Delhi
-
Jammu and Kashmir
-
Ladakh
-
Odisha
-
Puducherry
-
Andaman & Nicobar
-
Lakshadweep
-
Chandigarh
-
Dadra & Nagar Haveli and Daman & Diu
The Ministry is actively pursuing the adoption of virtual net metering in other states and UTs to further expand access to solar power.
Benefits of VNM
-
Wider Solar Access: Enables consumers with limited roof space or other constraints to adopt solar power.
-
Cost-Effective: Larger solar plants lead to economies of scale, reducing the per-unit cost of electricity.
-
Reliable Power: Ensures a reliable power supply, especially in rural areas.
-
Reduced Losses: Minimizes technical losses in power transmission.
-
Increased Revenue: Utilities can reduce their losses and increase revenue through local generation.
-
Sustainable Development: Promotes the use of clean energy and reduces reliance on fossil fuels.
Conclusion
Virtual Net Metering is a crucial step towards democratizing solar power in India. By enabling shared solar installations and overcoming the limitations of traditional rooftop systems, VNM is paving the way for a more sustainable and inclusive energy future. It empowers communities, reduces electricity costs, and contributes to India’s renewable energy goals.