Rooftop photo voltaic scheme: India’s solar energy subsidies for properties face scepticism

NEW DELHI

A brand new subsidy scheme aimed toward selling photo voltaic vitality adoption has been launched, focusing on the set up of photo voltaic panels in 10 million properties.

Lakshmi Narayan was one of many first to see the sunshine: in 2020, the engineer put photo voltaic panels on his roof in Bhopal, changing into a clear vitality pioneer due to his need to assist his nation transfer away from planet-heating fossil fuels.

“I perceive the significance of renewable vitality and thought that everybody ought to undertake it,” mentioned Narayan, 60, whose motion impressed many others in Bhopal to do the identical.

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A brand new authorities scheme, unveiled earlier than voting started in April, goals to encourage extra individuals to put in photo voltaic panels on their roofs as a part of the nation’s dedication to triple renewable capability by 2030.

The brand new programme, launched in February, gives ₹7500 crore ($9 billion) in subsidies to put in grid-connected rooftop photo voltaic techniques on round 10 million properties, permitting shoppers to scale back their electrical energy payments when the solar shines and promote further models to the grid to earn some cash.

It’s anticipated to create 30 gigawatts (GW) of photo voltaic capability in properties, resulting in a discount of 720 million tonnes of CO2 equal planet-heating emissions over the 25-year lifespan of the rooftop techniques.

“I need three issues. Each family’s energy invoice must be zero; we should always promote surplus electrical energy and earn cash; and I need to make India self-reliant within the vitality sector as we transition to the period of electrical automobiles,” Prime Minister Narendra Modi mentioned in a televised interview in late April.

The method, which was beforehand sophisticated and fragmented, has been simplified with the creation of a one-stop on-line portal to clean functions and facilitate installations. Subsidies are deposited immediately into individuals’s financial institution accounts.

India overtook Japan to turn into the third-largest solar energy generator in 2023, offering 5.9 per cent of world progress in photo voltaic, a report by assume tank Ember mentioned on Might 8.

However Ember famous that wind, photo voltaic and different low-carbon sources should not but rising quick sufficient to satisfy the rising electrical energy demand.

The brand new rooftop photo voltaic programme is supposed to spice up that progress, however Narayan’s expertise gives a cautionary story.

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He says the brand new on-line portal will present solutions to a whole lot of the bureaucratic complications that used to bedevil the method however, in his expertise, the larger problem is getting the electrical energy distribution corporations, or Discoms, on board.

A December 2023 examine by the Centre for Science and Setting (CSE), a Delhi-based assume tank, mentioned Discoms had been supposed to offer seamless entry and connectivity for rooftop photo voltaic techniques to the nationwide grid however that this was generally “in direct battle with the enterprise pursuits of the businesses.”

Narayan mentioned that though he saved as much as ₹250,000 ($2,996) in electrical energy payments over three years due to his 6 kilowatt (KW) photo voltaic system, promoting extra electrical energy to the grid proved to be problematic with debt-ridden Discoms proving ineffective companions.

“The electrical energy distribution firm expenses me ₹8 for every unit that I devour from the grid, however for the excess photo voltaic electrical energy that I promote again to the grid, they pay me ₹1.5 per unit. How is that truthful?”

And he mentioned that the distribution firm added a hard and fast cost of ₹500 to his month-to-month invoice after he put in the panels.

“They mentioned that that is the minimal quantity we are going to cost you even when your invoice is zero,” he mentioned, including that he acquired no reply when he enquired concerning the motive for the brand new tariff.

DISTRIBUTION CHALLENGES, LACK OF SKILLS

The pledge to chop electrical energy payments by boosting the solar energy sector was a key election promise from Bharatiya Janata Get together and displays India’s long-term dedication to spice up renewables.

In 2015, India promised to put in 40 GW of rooftop photo voltaic capability by 2022 however progress has been gradual. By the tip of 2023, it had solely put in 11 GW, together with 3 GW in properties with the remaining in business or industrial properties.

That authentic dedication has now been revised to 100 GW of rooftop photo voltaic installations by 2026, 40 GW of which might come from the residential sector alone.

Power consultants say the nation’s photo voltaic drive is hampered by fears of Discoms shedding earnings, scarcity of expert staff to make, set up and repair photo voltaic panels, and the proliferation of substandard merchandise.

Danish Ali, who has put in a 4 KW photo voltaic system on his roof in Lucknow, mentioned one other drawback arose from the truth that the grid-connected photo voltaic techniques can’t ship energy throughout outages except they’ve a separate battery to function them.

“In areas the place there are lengthy energy cuts, grid-connected techniques is not going to work as a result of they don’t present any energy back-up,” the 50-year-old mentioned.

Ali has to endure as much as two hours of energy outages just a few occasions every week throughout peak summer season months when temperatures often rise above 40 levels Celsius (104 Fahrenheit).

He mentioned that including a battery to the grid-connected system may remedy the issue, however the authorities subsidy doesn’t cowl the set up of such hybrid techniques.

Shreya Mishra, CEO of Mumbai-based Photo voltaic Sq. Power, which installs photo voltaic panels and is considered one of India’s largest rooftop photo voltaic corporations, mentioned the business might be getting ready to a growth; in 2023, 1,50,000 rooftop techniques had been put in and there are plans to focus on 25 lakh homes this yr, she mentioned.

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“This system has turned rooftop photo voltaic right into a dinner desk dialog that has turbocharged client curiosity,” she mentioned.

However extra coaching is required for staff in these new inexperienced jobs and home manufacture of photo voltaic panels should even be ramped up, she added.

The federal government says the brand new photo voltaic programme will create round 1.7 lakh direct jobs throughout varied sectors, together with manufacturing, logistics, gross sales, set up, operation, upkeep, and different companies.

An professional with a photo voltaic consultancy, who didn’t want to be named, mentioned that the comparatively restricted progress of house photo voltaic techniques had already brought about friction with Discoms.

“Think about thousands and thousands of properties being hooked as much as the grid and injecting their extra electrical energy in a system that’s already dealing with so many technical losses,” the professional mentioned, referring to losses brought on by, for instance, harm to transmission strains or electrical energy theft.

For Narayan, fixing distribution points can be central to encouraging extra individuals to change to photo voltaic and set up panels on their rooftops.

“If the federal government can allow individuals to really earn some cash, not for present however justified cash, with these rooftop techniques, it will likely be successful amongst clients. Who wouldn’t need it?” he mentioned.



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