New consumer rights rules may hit rooftop solar capacity addition

The latest rules regarding the consumer rights laid down by the Union power ministry is seen to impede the pace of capacity addition of the rooftop solar in the country by disincentivising commercial and industrial users from installing such power generation capacities in their premises.

While such consumers were earlier earning around Rs 7/unit by selling the surplus power generated from their rooftop solar plants to the state-run power distribution companies (discoms), under the new mandate they will be billed through “gross metering”, and compensated at rates close to the average power purchase cost of discoms which ranges around Rs 3.5– Rs 4/unit.