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g) The State Commission after hearing the Respondent no. 2 passed the impugned order dated 07.11.2014.

h) The State Commission in the impugned order has decided that a) Third Party Podel for development of Solar Power Plants is outside the ambit of RE Regulations, 2013, b) RE Regulations, 2013 specifies tariffs and other conditions for consumer of Distribution Licensee in the State who installs a solar roof-top plant c) Implementation of roof-top project under the State Government Scheme by person other than the owner of the premises/consumer shall not be able to avail preferential tariff in accordance with RE, Regulations, 2013. However, the tariffs at which electricity is procured by the Distribution Licensee would be regulated by the Commission and will have to be got determined by the Commission.

9. The questions that arises for our consideration are:

(i) Whether the grid interactive roof-top Solar PV projects of the Appellants developed under Third Party Model would be covered under the RE Regulations, 2013?
(ii) Whether the generic tariff for grid interactive roof-top and small solar PV projects as specified in the RE Regulations, 2013 would be applicable to the Appellants' roof-top and small PV project developed under Third Party Model?

24. Annexure I to the Regulation provides for the generic tariff of Grid Interactive Roof-top and Solar PV Plants commissioned on or after 01.04.2013 in terms of Rs/kWh (levellised) for the entire life of the project.

25. Let us examine the findings of the State Commission in the impugned order.

26. The State Commission held that the RE Regulations, do not cover third party model and as such the third party model is outside the ambit of RE Regulations, 2013. The Regulations specify the tariffs and other conditions for a consumer of the distribution licensee in the State who installs a solar roof-top plant. Accordingly, in case of implementation of solar roof-top project under the aforesaid scheme by a person/party other than the owner of the premises/consumer, such person/party shall not be eligible for availing preferential tariff in accordance with RE Regulations, 2013. The tariff at which the Distribution Licensee procures the electricity will be got determined by the Commission. The State Commission also agreed to retain the generic tariff as specified in the Regulation effective till 31.03.2015 (as against 31.03.2014 specified in the Regulations). However, for third party model not covered in the RE Regulations, 2015, the tariffs will have to be determined by the Commission. The Commission further observed that the selection of the model proposed by the Respondent no.2 is based on competitive bidding of capital cost/tariff. However, the tariff for supply of power to the Distribution Licensee in the third party model will be the tariff as approved by the Commission in accordance with the norms and principles specified under the RE Regulations, 2013.

35. Learned Counsel for the State Commission has argued that under Regulation 2(3) the generic tariff for Solar PV and Solar Thermal Power Projects shall be the maximum tariff and the Distribution Licensee shall invite bids from the generators/developers for procurement of power from these generators/developers. The Distribution Licensee has to enter into a Power Purchase Agreement with generators/developers bidding lower tariff.

36. We do not agree with the above contention of the Learned Counsel for the State Commission in respect of roof-top and small Solar PV plants. There are three categories of Solar Power Plants under the Regulations viz. solar PV, Solar Thermal Power Projects and grid interactive roof-top and small Solar PV Plants. Different tariff parameters and tariffs have been specified for these three categories. The generic tariff for Grid Interactive Roof-top and Small solar PV Plants is lowest amongst all the three types. The provision for competitive bidding applies to Solar PV and Solar Thermal Categories and not Grid Interactive Roof-top and Small Solar PV Plants. This is clear from the Regulation 2(3) which specifies the bidding provision for only solar PV and Solar Thermal Projects and not grid interactive roof-top and small solar PV plants. Such Roof- top and Small Solar PV Plants can sell the net injection into the Distribution Licensees at the generic tariff specified under the RE Regulations, 2013. If competitive bidding is resorted to for roof-top solar projects it would put them in a disadvantageous position as part of the output of roof-top solar plant is consumed for captive use and only net energy after accounting for import of energy by the consumer is considered as sale to the Distribution Licensee. On the other hand the entire energy sent out of other Solar PV and Solar Thermal Projects is considered as sale to the Distribution Licensee.