There are strong rumors that government is in the process of amending rules with respect to roof-top solar power producers. In that reports say that DISCOs will shift from Net Metering to Gross Metering, which is, unlike net-metering, the consumer never utilizes the solar power generated by his installation as all of the power generated via solar panels is exported to the grid. It means that both export and import will be monetized separately each month. Solar DG will sell cheap and buy expensive power. Gross Metering was an earlier concept where governments made an effort to familiarize people with solar energy and participated in roof-top installations by offering attractive incentives. Almost all countries have stopped gross metering and switched to net metering. Pakistan will, probably be the first country, where we would switch from net metering to gross metering and make a fool of ourselves.
Currently, DISCO sale price per kWh/Unit is Rs 35.57 plus surcharges, taxes and FPA, which totals up to around Rs. 65/Unit for the consumer. DISCO purchase price of solar generated units is Rs. 22/Unit or thereabout.
In simple terms a Solar DG will have to generate 3 times of his consumption from his solar system to achieve zero billing. A household consuming 1200 Units on an average per month will have to generate 3600 Units per month. A solar installation of 30kW will be able required. 90% of roof-tops will not have the space for such an installation.
This will not be an equitable arrangement with the solar energy producers and in accord with the intentions of the Alternate Energy Policy 2015. And, I am sure this will end up in litigation in case NEPRA agrees with the government plans. I have strong doubts that NEPRA will. The most obvious impact of this switchover will be that many owners will shy away from solar installations. The most important calculation is that how much will be received by this gross metering arrangement towards capacity payments? And, what adverse impact it will have on future solar installations.
A changeover to gross metering will certainly give rise to malpractices. First will be that a Solar DG will connect his house load to the Export Meter. Electricity takes the path of least resistance. This connection during sunlight hours will first feed in-house consumption and export the balance. Therefore, the DG will at least use his own generated solar power almost half the time. The solar DGs will learn to run their air conditioners full time during solar hours at lowest tolerable temperature and during non-solar hours, raise the temp to save on grid consumption.
Most of us will recall that there was a time when all the electric meters used to be installed in-house. These were moved out because the meter readers had difficulty taking readings when a house was locked and if they entered the premises without permission it amounted to trespass. Being the sole owner of a solar system, I can not be dictated the manner in which I should dispatch my generation. An appropriate example is WAPDA employees who get free Units to consume by simply being paid servants. The owner of a solar system has an absolute right to use his system, which best suits his circumstances. It will amount to infringement of his fundamental rights if he is forced into a contract to export all his generation and not use any himself. A contract to be valid has to be equitable and the most important element of an equitable contract is CONSIDERATION, which is mutually agreed upon. The current interpretation of change to gross metering seems to be that owner of a roof top solar system will have no say in the matter, which literally means that he does not own this installation and has invested his hard-earned money without an equitable CONSIDERATION. Irrespective of the solar capacity installed, any rough rodding will not be sustainable under the law of contract and the fundamental rights under the Constitution.
Gross metering literally means that I feed my solar energy through an export meter @ Rs.22/Unit to the import meter to sell it to me @ Rs.65/Unit. It also means that line losses (34% in the grid system), transmission cost, transformation from a higher voltage to 220V, grid and line maintenance have all been saved to the Grid and DISCO at the cost of a roof-top solar Distributed Generator (DG).
NEPRA will find it extremely hard to go along with all these faults and anomalies.
We are headed towards a huge scam, where someone will make good bucks on this change-over to Export Meters. All the current green meters will have to be replaced.
The current issue of capacity charges is in respect of those 11000MW Chinese plants, which were negotiated as part of CPEC when Mian Nawaz Sharif became the PM in 2013. He continues to cause torture incessantly.
