Net-metering saga: Much ado about the 0.83 per cent

The surge in generation of electricity through a distributed network has been driven by a significant reduction in solar panel prices globally, largely due to a supply glut in China, which is the largest manufacturer of solar panels. A drop in prices led to a surge in demand, and a solar revolution started to take shape, against the backdrop of high electricity prices that were being offered by the grid. The availability of low-cost distributed solar generation has been a boon for areas where power supply was either non-existent, unreliable, or scant, particularly in rural areas — while also accelerating a transition from diesel and electricity powered tube wells to solar. A reduction in the cost of solar panels also led to a surge in demand from industrial units, resulting in accelerated installation of solar panels in these establishments. This is turn reduced the average cost of electricity, and inadvertently resulted in a reduction in demand of electricity from the grid.