Missing the solar bus

The power generation scene in the country may well be heading towards a worst-case scenario for distribution companies, as consumers continue to drift towards net-metering, while the most advanced go off-the-grid as storage solutions, in terms of better batteries, become available. If the DISCOs had welcomed solar power instead of resisting it, they might have had a better chance of retaining consumers. Net metering has the advantage of allowing the consumer to draw on grid electricity, distributed by the DISCO, at those times when solar power is not available. However, if instead of selling production to the grid, the consumer was to store excess electricity and use it in times of darkness, he would be able to go off the grid entirely. That they are not doing so is primarily a matter of economics, not technology, because batteries are costly to install. There is also the technical issue that they are not that easy to maintain. However, electricity tariffs are already at the point where installing solar power with net-metering has become economical. Further hikes will make battery storage worth it.

DISCOs are working to reduce the pace of net-metering approvals, such as by approving only loads previously sanctioned, or requiring a separate transformer for any system greater than 10 kW. This is an attempt to make consumers buy expensive thermal-generated energy from them. The basic error by the DISCOs was to allow consumers to set up generation facilities themselves, and out of their own pockets. That opened up a whole new vista. Previously, consumers had left the DISCOs to invest in generation, which consisted of huge thermal or hydel powerhouses, with recovery of the cost built into the tariff. DISCOs had nothing to do with the setting up of solar energy, which is free, the only costs incurred being installation and maintenance.

Even now, if the DISCOs are wise, they could reduce tariffs by getting into solar generation, and thus bringing down the tariffs. Their natural advantage lies in storage, with all studies showing that bulk storage is more feasible than the retail that households or even factories could achieve. DISCOs also need to examine their distribution systems, for the next step will be the EV revolution. The world is on the cusp of a transformation powered by electricity, and the power sector still seems fixated on the old polluting thermal-generation technologies. The DISCOs need to be more proactive.