Solar power users in Ghaziabad may soon get a new way to use their extra electricity. Under a proposed peer-to-peer, or P2P, energy trading system, homes and businesses with rooftop solar panels could sell surplus power to nearby consumers through a digital platform.
The plan is being prepared for Uttar Pradesh and would be introduced in Ghaziabad first, according to the report. It could give solar users more choice than the current systems, where extra power is adjusted in the bill or paid for at a set rate.
What is peer-to-peer energy trading?
In a P2P energy system, one consumer with extra solar power can be matched with another consumer who needs more electricity. The seller and buyer complete the transaction through a digital platform.
This does not mean a new wire will run from one neighbour’s home to another. The electricity will continue to move through the existing grid managed by Paschimanchal Vidyut Vitran Nigam Limited, or PVVNL. The platform will record how much power is sold and bought.
The power distribution company will charge a fee for using its grid. The price for the extra electricity and the grid charge have not yet been fixed.
How the current system works
Most rooftop solar users in the district use either net metering or net billing. These systems handle extra solar power in different ways.
Net metering
Suppose a home produces 300 units of solar power in a month but uses only 220 units. The remaining 80 units go into the grid.
Under net metering, these extra units are adjusted against the electricity taken from the grid. This can reduce the user’s electricity bill. The consumer does not need to find another buyer.
Net billing
Net billing is used by many commercial consumers. If a business produces more solar power than it uses, the extra electricity goes into the grid. The consumer then receives payment at a fixed rate.
The report states that the current payment rate is ₹2.90 per unit. This rate may not match the price a buyer would agree to pay under a P2P system, since the new trading rules are still being planned.
What could change for solar users?
The main change is that surplus solar power could be linked with another consumer’s demand. A solar user may not have to depend only on bill adjustment or a fixed payment from the distribution company.
For example, a house may produce more electricity during the afternoon when its residents are away. A nearby shop, office or home could need power at the same time. A digital platform could record the surplus and match it with that demand.
The arrangement may help users make better use of rooftop solar systems. It could also support more local use of clean power. Still, the final benefit will depend on the approved price, platform rules, meter readings and grid charges.
How many solar consumers are in Ghaziabad?
Ghaziabad has a large number of electricity consumers, but only a smaller group is linked to rooftop solar arrangements at present.
- Total electricity consumers in the district: 11,87,567
- Net metering consumers: 9,072
- Net billing consumers: 950
- Total consumers under both solar systems: 10,022
These users may form the first group that can take part in the P2P system, subject to the final rules. Other consumers may join later if the programme expands.
What is still not clear?
The system is still under preparation, so several details remain open. Authorities will need to decide:
- The price at which a seller can offer surplus electricity
- The fee for using the PVVNL grid
- Who will run and monitor the digital platform
- How meters will record each transaction
- What happens when supply is higher than demand
- How billing disputes and payment delays will be handled
Consumers may also need an approved smart meter and a registered rooftop solar connection. The final guidelines should explain the process for joining the platform, checking sales and receiving payment.
Why the grid will remain important
Even when two consumers trade electricity through the platform, the grid remains at the centre of the system. It carries the power, keeps supply stable and records the flow of electricity.
This is why the distribution company will charge a grid-use fee. The fee will help cover the cost of maintaining wires, meters, staff and other parts of the power network. Without clear charges and records, a neighbour-to-neighbour electricity market could become as confusing as a group dinner bill with no one keeping notes.
Officials have said that work on the P2P arrangement is in progress. Until the rules are approved, solar consumers in Ghaziabad will continue to use net metering and net billing for their surplus electricity.
