The expert committee appointed by the Kerala Electricity Regulatory Commission has proposed changes to the billing system for solar producers. The committee's discussion paper suggests that the current net metering system, which offers discounts on electricity bills, should be limited to solar plants with a capacity of up to three kilowatts. For plants exceeding this capacity, the committee recommends the implementation of net billing, which would require producers to pay for the additional electricity they consume beyond their solar production.

Solar producers should be allowed to choose between net metering and net billing, depending on their usage pattern. Although net metering up to three kilowatts can be allowed, a banking method should be introduced that does not allow the entire production to be completely consumed. Net metering can continue for those above three kilowatts. But, banking is required. If net billing is adopted, banking will not be required. 

Key recommendations:

1. Freedom to choose billing method: Solar producers should have the freedom to choose the billing method (net metering or net billing) according to their usage pattern. 

2. Banking system for up to 3 kilowatts: The committee recommends allowing a banking method for plants producing up to three kilowatts. In this system, only 90% of the electricity generated can be used, with 10% set aside. This percentage may increase gradually to 20% over time.

3. Battery storage: Producers should implement a battery storage system to store excess electricity generated during the day. This system will cost Rs. 3 per unit, and initially, a storage charge of Rs. 1 per unit will be applied to producers.

4. Selling electricity: A system allowing solar producers to sell their surplus electricity to other consumers or in the market should be established.

5. Transition period: The committee recommends providing up to one year for existing consumers to switch to the new billing system.

The expert committee has proposed revisions to the rules for billing solar and other renewable energy users, with plans to discuss these changes starting in April. These are initial recommendations and not yet final decisions by the Electricity Regulatory Commission. Based on public feedback, the Commission will draft the new rules. Consumers are invited to share their comments on these proposals until February 15, as there has been considerable debate over the billing methods. The recommendations were prepared by a committee led by Regulatory Member B. Pradeep.

The final decision will be made after considering public opinions.

Current system vs. proposed changes

Under the current net metering system, if solar producers use more electricity than they generate, they only pay for the additional consumption. If they produce more than they use, they receive credit for the excess electricity fed into the grid. In contrast, net billing will calculate electricity usage separately for day and night. Daytime solar generation, when electricity is cheaper, will be used to offset daytime consumption. Any remaining deficit or night-time usage will be charged at a higher rate.

Future plans:

- The committee also emphasises the need for Kerala to transition away from coal-fired power by 2040, recommending the establishment of nuclear power plants.
- It also calls for a significant increase in the generation of renewable energy, including solar power, to double renewable energy production.