JERC turns down UT’s plea on implementing Resco model for solar power plants

The Joint Electricity Regulatory Commission (JERC) has turned down the UT administration’s plea of implementing the Renewable Energy Service Company (RESCO) model for solar plants installation in the city.
After JERC’s decision, the UT administration has now decided to file a review petition before the power regulatory body.
The Chandigarh Renewable Energy and Science and Technology Promotion Society (Crest) had moved JERC for implementing RESCO model in the city.
Crest, project’s nodal agency, had proposed this model after approval of UT administrator V P Singh Badnore as residents were wary of the initial capital investment.
Under the Resco model, the UT had planned that private companies will install solar-energy plants on private property, and in return, charge the building owner a much lower tariff (Rs 3.44 per unit) than the normal electricity rate (Rs 2.75 to Rs 5.20) for about 15 years (or whatever period is agreed in the tender). Thereafter, the house owner will get the plant.
The building owner and the private company will sign a deal. The plant will be installed under the net metering mode, whereby a solarenergy unit is connected to the building’s electricity system and the solar energy exported to the grid is adjusted in terms of units imported from the electricity department during a billing cycle.