Now, Karnataka Electricity Regulatory Commission permits citizens to install solar panels on walls of apartment buildings | Bengaluru News

Bengaluru: Breathing a fresh lease of life into the Solar Rooftop PV (SRTPV) project, which met with a poor response from public in the wake of the state govt’s Gruha Jyothi scheme, Karnataka Electricity Regulatory Commission (KERC) not only revived the entire project but also rechristened it as ‘Distributed Solar PV (DSPV) Plants’. Under the new DSPV system, citizens can install solar panels not just on the rooftop but also on the walls of buildings and any elevated structures on the ground, including carports and other structures in apartment communities and govt buildings.The KERC’s latest order is viewed as a game changer for apartment communities, domestic consumers, govt buildings, and charitable institutions. The new DSPV method not only provides them with better revenue options for harnessing solar energy but also offers a lucrative tariff permitted through Virtual Net Metering (VNM) and Group Net Metering (GNM) models. The new methods and tariff will be applicable to all solar projects commissioned after July 1, 2025, and will be valid for the next 25 years, according to the order.The Karnataka Renewable Energy Association and Solar Manufacturers had requested KERC to allow setting up of solar panels on all elevated structures on the ground with a net-metering facility, besides permitting facade-integrated solar panels on the walls of buildings. The KERC, considering the latest developments in solar technology, permitted it along with VNM and GNM.Raghunandan A, president of Karnataka Renewable Energy Association, revealed VNM benefits multiple consumers within the same utility service area to share the benefits of a single solar power system, even if they do not have solar panels on their property. “VNM is best suited for those who do not wish or cannot install solar on their own rooftops. But if they have invested in rooftop projects elsewhere in the same premises, they will receive credits on their electricity bills based on their share of the generated power,” he said. Similarly, GNM is a method where a single consumer with multiple accounts can pool the solar energy generated from a single or multiple solar power plants and offset their electricity bills across all those accounts linked to the entity.The VNM is seen as a shot in the arm for domestic consumers, group housing societies (apartments), institutions managed by charitable organisations, and govt buildings, including schools or those belonging to local bodies. “The minimum capacity of the solar plant under VNM would be 5kW, and the maximum size shall not exceed the combined sanctioned load of all participating consumers,” the KERC order said. Under VNM, consumers can sell their entire solar energy to the grid, but under GNM, the consumers must consume at least 20 per cent of the total energy generated by the solar plant in a month.Better TariffTo promote solar energy, KERC has offered the best tariff, according to stakeholders. “Consumers can avail Rs 3.86 per unit for up to 10kW, and Rs 3.8 per unit for power generated above 10 kW. Given the existing tariff structure for solar projects, this is a very decent tariff and will be a good revenue model for apartment communities as these earnings would balance their monthly maintenance expenditure,” explained a member of Karnataka Renewable Energy Association.Cost per kW1kW – 10 kW (Rs 40k/kW)1 kW up to sanctioned load kW(Rs 30k/kW)Life of the Solar Plant25 yrs25 yrsDebt equity Ratio & Debt70:30 (Rs 28,000)70:30 (Rs 21,000)Debt repayment in years1313Equity in rupeesRs 12,000Rs 9,000O&M expenses (per kW)Rs 791.31Rs 791.31Tariff per unit (without subsidy)Rs 3.86Rs 3.08Tariff per unit (with subsidy)Rs 2.30 (1 kW-2kW)Rs 2.48 (2kW – 3 kW)Rs 2.93 (3 kW & above)——Source: KERC