Impact of compensation mechanisms for PV generation on residential consumers and shared net metering model for developing nations: A case study of India

Abstract The present work examines the impact on consumer electricity bills under five different cases based on different compensation mechanisms to evaluate PV generation units for 120 residential consumers in Kharagpur, West Bengal, for assessing the pertinence of energy policy to be introduced for encouraging rooftop PV in India. The consumers are categorized based on their lifestyles. It is found that lower the size of the panel, lower is the savings leading to a decrease in the attractiveness of a rooftop PV system for a residential consumer. Also, the compensation mechanism and injection tariff play a crucial role in making a rooftop PV system feasible for a residential consumer. It is observed that the achieved savings of a consumer is a function of compensation mechanism and seasonal load pattern of a consumer. A shared distributed net metering model is proposed as an alternative to the individual rooftop PV systems, to mitigate the issues related to shading, land and financial feasibility of a PV system for small residential consumers. The results of the simulation analysis based on the model indicate a high positive net present value and an acceptable payback period, which makes the model feasible. The proposed model is found to be more scalable and economically viable for a developing nation like India. Net metering policy, being in its nascent stage in India, needs to be revisited to incorporate innovative tools and mechanisms to deliver the goods to the large section of the population.