UERC Rejects 50 MW Solar Power Proposal In Uttarakhand Over Net Metering Constraints

A petition was filed before the Uttarakhand Electricity Regulatory Commission by the Van Panchayat Adhar Mafi, Almora, seeking permission to set up a 50 MW solar power plant in the villages Adhar Mafi, Kujyadi, Dehli, and Jyoli in Almora district. The Panchayat explained that it holds government land in these villages, totaling over 150 hectares, and wanted to use this land for solar power generation. The plan was to select an eligible developer through a tender process, who would invest in, install, and maintain the project. The developer would operate the plant for 25 years, after which ownership would transfer to the Panchayat. The electricity generated was proposed to be transmitted into the grid maintained by Uttarakhand Power Corporation Limited (UPCL), and the Panchayat wanted the power bills of the villages to be adjusted against the units generated on a net metering basis.

The petitioner argued that solar power development was in line with the Uttarakhand Solar Power Policy 2013, which categorized projects into four types. The Panchayat intended to develop the project under Type III, which allows the use of government land by private developers in return for maximum free power to the state. They emphasized that the region lacked industrialization and employment opportunities, leading to high migration, and this project could help in rural development. A feasibility report estimated the project cost at ₹275 crore, with expected generation of 91.60 million units annually.

UREDA, one of the respondents, pointed out that the Panchayat must prove it was a recognized government organization and secure permission from the revenue department for land use. It also stressed that revenue generated from electricity sales must follow the Van Panchayat Rules. UPCL raised objections that the petition was filed under provisions of regulations not applicable in this case. It argued that the Panchayat had not provided any technical consultation with UPCL and that net metering for a 50 MW plant was not permissible under regulations, which allow net metering only up to 1 MW.

The Commission reviewed the submissions and clarified that since the project would be commissioned after 2018, it would fall under the 2018 renewable energy regulations, not the 2013 rules. It noted that net metering is allowed only for rooftop and small solar plants up to 1 MW, and hence, the Panchayat’s request for 50 MW net metering adjustment could not be accepted. The Commission also found contradictions in the Panchayat’s proposal, as it both proposed captive use under Type III and adjustment of bills through net metering, which are inconsistent.

The Commission referred to similar earlier petitions, where requests for large-scale net metering had been rejected, and petitioners were advised to instead enter into a power purchase agreement (PPA) with UPCL. Following this line, the Commission concluded that the Panchayat’s petition lacked merit under the prevailing law and regulations. It rejected the petition but advised that the Panchayat could still proceed with developing a solar project by working with UREDA and, if permitted, sign a PPA with UPCL for the sale of the entire power generated, subject to ceiling tariffs set by the Commission.