Common use of Commercial Settlement Clause in Contracts

Commercial Settlement. All commercial settlements under this agreement shall be as per GERC (Net Metering Rooftop Solar PV Grid Interactive Systems) Regulations, 2016 amended from time to time and Order No. 3 of 2020 dated 08.05.2020 and Suo-Motu Order No. 06 of 2020-dated 05.08.2020 of the Gujarat Electricity Regulatory Commission and any subsequent orders in this regard. In case of the energy injected from Solar Power System set up by the prosumer sale to Distribution Licensee under gross metering arrangement shall be purchased by the Distribution Licensee at the rate mechanism decided and specified by the Commission in its Order dated 08.08.2019 in Petition No. 1802 of 2019, pertaining to tariff for the Solar Power Projects set-up under “Policy for Development of Small Scale Distributed Solar Projects – 2019” as under: “Applicable Tariff Tariff applicable shall be as per following mechanism: The tariff contracted in the competitive bidding process conducted by GUVNL at which PPAs are signed for procurement of Solar Power from projects located outside Solar Park prevailing as on 31st March (computed based on simple average of such tariff discovered and contracted over six months ending on 31st March) of any given year with an addition of Rs. 0.20 per unit shall be the applicable tariff at which the PPAs shall be signed during the immediately succeeding period of April to September by Obligated Entities with these Solar Projects under these Regulations and similarly the contracted tariff prevailing as on 30th September of any given year (computed based on simple average of such tariff discovered and contracted over six months ending on 30th September) with an addition of Rs. 0.20 per unit shall be the applicable tariff for PPAs to be signed during the immediately succeeding period of October to March. The Rs. 0.20 per unit addition in tariff is allowed for Rs. 0.12 per unit for saving in transmission loss as power will be injected in distribution grid and Rs. 0.08 per unit is to compensate for expensive land cost, higher capital investment and maintenance cost due to small size of projects. The above mentioned tariff shall be applicable for a PPA term of 25 years from Commercial Operation Date of the Projects.” The commercial settlement will be as follows: