Solar will not be profitable anymore: Net meters will be replaced with gross meters

THIRUVANANTHAPURAM: As solar power generation becomes widespread in Kerala, surpassing hydroelectric projects, KSEB itself is devising strategies to thwart it. The plan is to implement a gross meter system that will lead to excessive charges instead of net meters that read electricity in a way that benefits solar consumers.

Net metering is a system in which the amount of electricity generated by solar during the day is deducted from the electricity consumed from the grid at night and only the remaining electricity is paid for. If this is changed to a gross metering system, a high rate will have to be paid for electricity consumed from the grid at night. The solar energy supplied to the grid will only get a relatively low price. This will eliminate the profit of installing a solar plant. The move is to introduce new regulations for this in the 'Renewable Energy and Related Matters' Regulations.

With the new regulations, those generating more than three kilowatts of solar power will not be able to use net meters. Those generating up to five kilowatts of solar power can also install net meters if they purchase batteries to store the electricity generated during the day. A new provision will also be implemented that only 66% of the solar power generated during the day and fed into the grid can be taken from the grid between 6 pm and 11.30 pm. The proposal is to install batteries along with the solar plant to solve this. It is a costly proposal. There are allegations that the move is to discourage solar power by keeping vested interests in mind. The previous move to impose gross meters and charge 15 paise per unit as generation duty was abandoned following public protests.

Solar expansion will hit private contract electricity

Kerala consumes 80 million units per day

Kerala's daily production: less than 20 million

Daily purchase from contract companies: 24-30 million

Daily purchase from contract companies before solar became widespread: 40 million

Annually, contract companies pocket Rs 12,000 crore

Battery cost 2.50 lakh

A typical family will spend Rs 2.50 lakh on a battery storage system including 6 batteries, four panels and an inverter, including AC.

Solar plant cost

A 3 kW plant will cost Rs 2.25 lakh and a 5 kW plant will cost Rs 3.35 lakh.

Subsidy for rooftop solar: Up to 78,000

Rooftop plants in the state: 1,51,922