Andhra Pradesh Government, through NREDCAP (New and Renewable Energy Development Corporation of Andhra Pradesh) is one of the first state governments in India to formulate a solar rooftop policy that provides net-metering.
Net-metering in rooftop solar is a concept where electricity consumers in homes/offices buy solar panels and generate their own electricity. This electricity is primarily utilized for their own consumption, but any excess energy generated can be exported back to the utility/grid. The government pays a fixed tariff for every unit of energy exported (Rs. 3/unit currently in effect for AP).
The biggest advantage of net-metering is - consumers don't have to buy batteries/charge-controllers along with solar panels. Batteries store energy, but they are quite expensive and need to be replaced every few years (based on the usage). Hence, the total cost of solar panel system comes down and will be affordable for many.
A 1 KW solar panel system (which is generally preferred in households) costs around Rs. 50,000 after all incentives from central government and state government (there maybe additional installation, smart-meter & protection costs). Of course, this system has no battery and hence cannot provide backup power during nights. It can generate up to 4-5 units on a normal sunny day.
Homes could use as much solar energy as possible when it it generated (during the day) and excess energy will be exported to the grid. Please note: This system will bring monthly electricity expenses down greatly and only 3-phase customers can avail this benefit (currently).
If consumers generate more electricity through their solar panels (than they consume), calculated over the billing cycle, they will not be paid for the extra power exported. However, if consumers use more electricity from the grid than they generate (which will most probably be the case), they only need to pay the differential electricity cost, as per usage. This is one more reason why a 1 KW system (and not higher) maybe optimum. Unless, of course, your home/office consumes a large amount of electricity.
More details on net-metering policy from Andhra Pradesh Government can be found here.
In order to provide more exposure to rooftop solar net-metering policy, the Andhra Pradesh government is conducting a 2-day exhibition, on 24th and 25th August, 2013 at Neclace Road, People's plaza, Hyderabad. If you live in Hyderabad/nearby and you want to know more details about this scheme and meet vendors, you could walk-in anytime between 10:00 AM to 8:00 PM on those two days. The Govt. circular on the same is here.
For details on all Andhra Pradesh Govt. renewable energy policies, visit NREDCAP site.