It is sustainable, climate-friendly and can help slash your surging power bills. After nearly a decade-long campaign and a boom in the renewable energy market, rooftop solar panels haven’t yet become a popular choice for a majority of the Indian households. However, a new government scheme intends to change that.
With a massive outlay of nearly Rs 75,000 crore, the new nationwide scheme aims to install rooftop panels over 10 million households in the country. If all goes as per plan, this may also help the government reach its long-drawn national target of 40 GW by 2022, now extended to 2026. But this would be a gigantic task.
Rooftop solar power has been lagging in India, with just 7-8 lakh households added since 2015 contributing to an installation capacity of merely 11 GW. “This is just 27% of the actual target. India’s total solar capacity stands around 73.3 GW by the end of 2023. For India to make that giant leap, it has to inspire confidence among average middle-income consumers, who are still on the fence when it comes to investing in the new technology," says Binit Das, Programme Manager, Renewable Energy Unit, Centre for Science & Environment (CSE).
WHY CONSUMERS ARE ON THE FENCE
A recent study led by CEEW showed that more than half of the residential consumers are not fully aware of the technology, impacting their willingness to pay. Those who are aware and have the requisite rooftop space are deterred by the high initial costs, cumbersome installation process and long payback period.
Sample this: An average middle-income household generally looks at rooftop plants of around 3kW that can generate about 3,000 W/h electricity, enough to run household appliances such as lights, fans and TV, except the air-conditioners. A 3-kW rooftop system usually requires about 36 sq m of shadow-free area, according to a feasibility study. On a clear sunny day, a 3 kWp (kilowatts peak) solar power plant can generate a minimum of 12 units in a day – 360 units per month. The cost of power is set for the next 25 years – the standard life of solar panels — unlike the conventional grid electricity, which will keep rising.
Currently, this would be an upfront investment of around Rs 1.5 lakh, with a payback period of at least four to five years, which still pinches most consumers, despite government subsidies of around Rs 54,000, which go directly to bank accounts. This is further marred by the uncertainty regarding trusted solar vendors and lack of awareness regarding the net-metering process, which allows residential consumers who generate their own electricity from solar power to sell the surplus power back into the utility grid. To top it all, a majority of the targeted lower income households, who consume less than 200 units per month, already avail power subsidies in several states.
SAVE MORE: BRING DOWN POWER BILLS
The government’s latest plan to target at least 10 million households intends to make rooftop solar a cost-effective option for millions and remove the bottlenecks. In a first, it has also unlocked freebies – 300 units of free electricity for households opting for it. This will enable consumers to save up to Rs 15,000 to 18,000 by selling the surplus power to distribution companies (DISCOMS) via net-metering.
However, this is easier said than done, considering power is a state subject and the net-metering laws and mechanisms for compensating solar consumers vary widely across states.
WHAT NEXT?
The next few months would be marked by massive awareness campaigns across states, with the government keen to incentivise urban local bodies and panchayats to promote rooftop solar panels in their jurisdictions. All stakeholders will be integrated into a national online portal – PM Surya Ghar: Muft Bijli Yojana — to assist potential consumers from start to end. The government has also announced amping up of affordable finance options with concessional bank loans to ensure there is no cost burden on people.
Today, over 40% of the rooftop solar panels installed across the country are in Gujarat, followed by Maharashtra, Rajasthan and Karnataka. Unlike utility-scale solar power, which faces land constraints, the potential for rooftop panels is huge across all states.
The CEEW study says over 25 crore households across India have the potential to deploy 637 GW of solar energy capacity on rooftops.
The industry has been waiting for its moment under the sun and if the bottlenecks are removed, it could be another bright spot in India’s fast growing renewable growth story.
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