The Central Electricity Authority has proposed creation of separate tariff structures for rooftop solar net-metering consumers, including differential Time-of-Day (ToD) tariffs, as part of a broader effort to redesign electricity tariff frameworks and improve recovery of fixed costs by DISCOMs.
In its report titled “Need for a National Framework for Rationalizing Fixed Charges and Tariff Redesign”, the CEA said conventional tariff structures may no longer adequately reflect the changing grid interaction patterns of rooftop solar consumers, who increasingly import power during non-solar hours while exporting excess electricity during daytime.
Seperate Tarifs Recommended
The authority recommended introduction of separate tariff categories for net-metering consumers, with differentiated fixed charges, variable charges and ToD tariffs aligned to system requirements and grid usage patterns.
According to the report, existing ToD rebate and surcharge mechanisms become distorted when applied after net-metering adjustments. It noted that while several states currently provide a 20 per cent surcharge or rebate on energy charges under ToD frameworks, the same percentage gets applied on reduced post-net-metering energy charges, lowering the effective ToD impact.
How It Could Aid Renewables
The report said revised ToD structures could encourage consumers to shift electricity usage toward periods of high solar generation while improving cost recovery for utilities during evening peak demand periods.
The CEA also highlighted concerns that increasing rooftop solar adoption is reducing DISCOM energy sales while utilities continue to bear fixed infrastructure and power procurement costs. It warned that consumers with rooftop solar systems often remain connected to the grid for reliability and backup support, creating challenges for recovery of fixed network costs.
The report further recommended separate tariff structures for open access and captive power consumers, including standby charges for users relying on the grid as backup while sourcing power from rooftop solar or captive renewable energy systems.
The recommendations come amid rising adoption of rooftop solar, open access renewable energy and battery energy storage systems across residential, commercial and industrial consumer categories.