| HOW SOLAR POWER WORKS | |
| A. | Sunrays are absorbed by the solar panels and converted into DC current |
| B. | DC Current is fed to the Inverter which converts it into AC Current |
| C. | Electricity from Inverter and grid are fed to the Load through distribution panel |
| D. | Only the electricity requirement not met by the Solar Project is imported from the grid |
| The Electricity Act 2003 (EA 2003), which, among other things, provides for regulatory interventions for promotion of renewable energy (RE) sources through: | |
| A. | Determination of tariff |
| B. | Specifying renewable purchase obligation (RPO) |
| C. | Facilitating grid connectivity |
| D. | Promotion of development of market |
The National Tariff Policy (NTP) 2006 requires the State Electricity Regulatory Commissions (SERCs) to fix a minimum percentage of Renewable Purchase Obligation (RPO).
The policy was amended in January 2011 to prescribe solar-specific RPO be increased from a minimum of 0.25 per cent in 2012 to 3 per cent by 2022. Further, the National Action Plan on Climate Change (NAPCC) suggests increasing the share of renewable energy in the total energy mix at-least up to 15 percent by 2020.
CERC-RE Tariff Order for FY 2013-14 dated February 28, 2013
(Source: http://www.cercind.gov.in/Misc-13.html)
