Solar Rooftop Project Permits and Regulations: Key Guidelines

The majority of rooftop solar power plants installed in India are designed as grid-connected/on-grid systems. This configuration allows the solar plant to be interconnected with the grid, ensuring a seamless integration of solar energy into the existing electricity supply. For these solar plants to function efficiently, it is crucial that they synchronize with the grid. Proper synchronization helps prevent potential disruptions or issues such as power quality problems or imbalances in supply and demand. Hence, rooftop solar power plants need approvals from respective DISCOMs before connecting to the grid.

Furthermore, the installation of solar power plants must comply with specific guidelines and regulations set forth by the Ministry of New and Renewable Energy (MNRE) and the local Electricity Distribution Companies (DISCOMs). These guidelines are established to ensure that solar installations maintain high standards of quality and reliability. Compliance includes meeting technical specifications, safety protocols, and performance benchmarks. By adhering to these regulations, rooftop solar plants can contribute effectively to the grid while ensuring they operate safely and efficiently.

In this blog, we will understand the permits and regulations required for installing a solar rooftop plant in India.

Below are the permissions required for installing a solar rooftop plant. The applicability will differ depending on the size of the solar plant and the type of establishment (Residential/Commercial):

• DISCOM     Approval, Net Metering, and Gross Metering
• Subsidy
• CEIG     Approvals
• Local     Building Approval/NOC

DISCOM Approval, Net Metering, and Gross Metering DISCOM approvals are required for grid connection. The application request includes the location, plant capacity, and connection details. The process and requirements for DISCOM approvals vary from state to state and also as per the DISCOM company. Hence, it is advised to check the official website or with the authorities for the updated processes.

DISCOM approval isn’t just for grid connection; it also includes Net Metering or Gross Metering approval. Whether it will be Net Metering or Gross Metering will depend on the regulations from the DISCOM. The State Electricity Regulatory Commission (SERCs) also determines the regulations on Net Metering and Gross Metering.

• Net     Metering: When a consumer with a rooftop solar installation generates more     electricity than they consume, the surplus energy is sent to the grid. The     DISCOM then carries forward the excess units to the next month, which can     offset future electricity bills.
• Gross     Metering: In this mechanism, the generated electricity is fed into the     grid, and the consumer is paid for the total energy produced at a fixed     rate, usually determined by the state or utility.

Some Common Rules/Eligibility Criteria:

• Sanctioned     Load and Transformer Capacity: Most states allow an on-grid solar     rooftop plant with a capacity either equal to or less than the sanctioned     load. For example, in Maharashtra, you can install a solar plant     equivalent to the sanctioned load, but in Punjab, non-residential     consumers can only install 70% of the sanctioned load.
• Limit     on Capacity: There is a limit on capacity based on the local     distribution transformer's capacity. This limit varies by state; however,     you don’t need to worry about it, as DISCOM officials can assist you when     you submit your application. In some cases, this information may also be     available on the DISCOM website.
• Limit     for Net Metering and Gross Metering: To comply with regulations, the     DISCOM shares the technical specifications of the meter to be replaced     with the bi-directional meter. The installation of the meter is also done     after the plant installation in the presence of a DISCOM authority.

It’s important to note that each state and its respective DISCOM impose a maximum limit on the capacity of solar plants that can be connected under net metering arrangements. Generally, in most states, the upper limit for residential or commercial solar rooftop systems is set at 1 megawatt peak (MWp). However, this capacity cap can vary, being either lower or higher, depending on the specific regulations and policies enforced by different states.

Some of the documentation you might need during the process includes:

• Electricity     bill as proof of electricity connection
• Plant     layout, mentioning plant capacity details and location
• Filled     application/form required by the DISCOM
• Government     ID or company establishment letter, whichever is relevant
• Proof     of property ownership (property tax receipt, sale deed, or lease     agreement)

Subsidy With the subsidy through the PM Surya Ghar Muft Bijli Yojana, residential consumers can claim a subsidy for solar rooftop plants up to 3kW and housing societies up to 500kW.

The application to register can be done through the National Solar Portal. The registration process is simple, where the consumer enters the plant and vendor details along with bank details. The subsidy is then disbursed directly into the bank account upon the complete commissioning of the plant. Once the consumer selects the vendor on the portal, the vendor also gets access to fulfill further technical requirements. To know more about the PM Surya Ghar Muft Bijli Yojana, check out our earlier blog [here].

CEIG (Chief Electrical Inspector to the Government of India)Approvals While residential solar rooftop plants do not require a CEIG inspection, larger plants above 1 MW (in most states in India) must apply for CEIG approval to the relevant jurisdictional office of the Electrical Inspectorate before installation and electrification. This must be done after getting the necessary power sanction approval from the relevant DISCOM and before beginning electrical installation work once the installation schematic has been approved.

This approval process assesses the technical feasibility, regulatory compliance, financial viability, and environmental sustainability of proposed projects. By following this thorough evaluation, developers can effectively reduce risks associated with project implementation.

Local Building Approval/NOC In situations where apartments or commercial buildings have multiple owners, it’s essential to establish clear usage rights for the area designated for a solar plant since the installation will be a permanent fixture. Before proceeding with the planning of a solar installation, it is highly recommended to gather a No Objection Certificate(NOC) from all stakeholders involved. This certificate ensures that every party agrees to the use of the space for solar energy purposes, helping to prevent any disputes or misunderstandings later on.

How to Ensure Quicker Approvals and Permits

• Ensure     the consumer has all the necessary documents, including electricity bills,     property documents, etc., required for the permits before closing the     deal.
• Check     all the existing meter and earthing details (especially in the case of     commercial and industrial consumers). If the CTs and earthing are old and     not up to the standard, the DISCOM might ask to change them as per their     specifications. This helps estimate future costs and avoid surprises.
• Most     importantly, initiate the processes early and work simultaneously on the     installation front. There might be delays due to bureaucratic processes,     hence it is always recommended to act on all the requirements from the     authorities, fulfill all the requirements, keep yourself updated on any     status changes in the application, and follow up through the process to     avoid delays.

While we discussed the various permits for rooftop solar in this blog, even though it sounds extensive, with the right approach and experience, these processes become easier with every installation. We also recommend keeping EPC companies and installers updated on policies and regulations in their states of operation, as regulations might affect the co stand timeline of the rooftop solar power plant installation. Moreover, through the Aerem app, consumers can keep track of updates and have a seamless installation.

‍