Month: February 2021

Is Solar Energy Still A Good Investment Under New MERC Norms?

by vemcoblogs -

Even though the recent revision of the Maharashtra Electricity Regulatory Commission (MERC) tariff has slashed the price for power distribution companies, what does it mean for the solar energy sector? Is it still a good investment?

Earlier, the Maharashtra State Electricity Distribution Company Limited (MSEDCL) had proposed that a considerable grid support charge should be added to net metering rooftop solar systems which have a capacity of over 10 kW.

Well, the good thing is that despite the looming possibility of solar power prices to rise amidst the coronavirus pandemic, the Commission decided to NOT levy any support charges to on-grid solar system installation on rooftops. This will hold until the total rooftop solar photovoltaic module capacity of the state reaches 2 GW. 

The fact is that the decision was taken against the regulatory mandate to impose grid support charges in an attempt to reduce additional tariff burden on non-solar consumers. An additional banking charge has also been approved that includes an energy adjustment of 7.5% for HT and 12% for LT of the excess generated energy which will be fed back into the grid.

Also, the commission has exempted additional fixed charges behind the meter rooftop solar to ensure that such installations are registered primarily for grid security.

These latest changes, indeed make both off-grid solar system and on-grid solar system a good investment option. Plus, you have Vijay Engineering and Machinery Company to provide you with the best solar solutions and maximise your savings.

How Revised MERC Tariff Is Going To Affect The Consumers

by vemcoblogs -

The coronavirus pandemic has not only slowed down everyday life but has also wreaked havoc on India’s economy as businesses and trades all across the nation are floundering to stay afloat, and the average middle-class individuals are struggling to make ends meet in the absence of functioning work sources. In this bleak scenario, the recent revision of the Maharashtra Electricity Regulatory Commission (MERC) tariff has slashed the price for power distribution companies in an attempt to boost the state’s economy but is it enough? Or is it time to switch to more renewable sources of energy like solar street lights, solar inverters, etc.

Having been applied since April 1, the MERC rates have been reduced for the first time in 10-15 years. 

The Impact of the Revision on Consumers

The tariff has been reduced by 5-7% for domestic consumers, while industrial and commercial consumers now avail the benefit of the prices being reduced by 10-12%. But compared to these high benefits, the tariff has been barely reduced for agriculture consumers – farmers received only a 1% reduction in electricity costs.

These revisions are for a period of five years and will allow power distribution companies to supply to consumers at a much lower rate. 

Still find it costly? Well, all you have to do is switch to a “solar” lifestyle with VEMCL’s aid! From solar rooftop to ground mount solutions and off-grid to on-grid solutions, we are here to make your smart transition easier with your particular need specific customised solutions.