Generation Based Incentive

Given the challenges in getting supply from conventional sources, the Haryana Electricity Regulatory Commission has recommended the Discoms to support roof top solar systems. In the tariff order for 2015-16, the HERC has suggested that “Discoms shall endeavour to promote the installation of grid connected Solar Rooftop System and to facilitate its consumers who intend to install such system. The Commission, in order to promote Rooftop Solar Power System under net-metering regulations, shall consider Generation Based Incentive (GBI). The details of the incentives to be provided shall be determined by a separate Order in due course of time”.

If Haryana implements the generation based incentive, it will be the first state to implement the same and would provide huge incentive to the rooftop solar installations. Given the high tariffs in the state of Haryana, the roof top solar can provide the much required relief to the consumers.

The generation based incentive has been provided by the Central Government to the RE (renewable energy) generators that have not opted for the benefits of accelerated depreciation (AD). The GBI is aimed at incentivizing the generation projects that are not able to take the AD benefits. It is expected to make the rooftop solar generation even more attractive for the domestic consumer categories. The domestic consumer category is paying one of the highest tariff in the state across all categories. The tariffs for this category goes upto Rs 8.17 per kWh if the consumption goes above 500 kwh or units.