Case for Rapid Growth of Decentralized BESS: Boom in Solar Rooftop and Net Metering Challenges - Part 3
The Solar Rooftop Market in India has seen exponential growth in the last few years. From an installed capacity of less than 2GW in FY19, this has exceeded 16GW by FY25 as per MNRE data. There is significant awareness in the consumer mindset for installation of solar rooftop for savings related to reduced electricity usage from the grid.
The Central Government schemes like PM Surya Ghar Yojana are leading to significant momentum build up in the number of households doing solar rooftop installations.
Despite the strong intent and benefits of rooftop solar, there are several bottlenecks at the regulatory level across various states.
DISCOMs are unable to integrate net metering for the solar rooftops due to technical challenges associated with grid stability and with fear of revenue loss.
There is a significant time delay in the Approval grant by DISCOMs, ranging from months. Further, there is a capacity limit being put for eligibility for net metering by several DISCOMs, which is disincentivizing for many C&I customers.
This makes a strong case for the installation of Decentralized BESS systems at the individual rooftop level to maximize the ROI of the system by charging the batteries during peak solar hours with the under-consumed generation and utilizing them for time shift purposes during the evening peak demand hours.
https://mnre.gov.in/en/physical-progress/