Loading...

India plans to make renewables mandatory on rooftops


22 June 2015 | BRIDGE TO INDIA

India plans to make renewables mandatory on rooftops

Last week, the Cabinet Committee on Economic Affairs, chaired by the Prime Minister formally gave its approval for stepping up India’s solar power capacity target to 100 GW by 2022 (refer). The press release included some bold policy ideas to achieve the goal. They include: making 10% rooftop solar mandatory under a scheme to be formulated and announced by the Ministry of Urban Development (this is still an idea that may or may not become a policy) and setting up industrial parks for manufacturing solar PV components. Apart for the new policy targets, the cabinet also gave its approval for implementing 2 GW of utility scale projects under a viability gap funding mechanism (refer). This is a part of the 7 GW to be allocated by SECI.

  • India’s cabinet approves the 100 GW solar plan
  • A provision for mandatory renewables for buildings is planned
  • There will also be industrial parks for manufacturing solar components

The most noteworthy point in the press release is the proposal for amendment in building bye-laws for mandatory provision of roof top solar for new construction and 10% renewable energy provision for end-customers under the new scheme of Ministry of Urban Planning. It is an interesting proposal and, in this post, we discuss some of its pros and cons.

Mandatory rooftop solar is not new to India. Similar policies have earlier been formulated by the states of Haryana and Tamil Nadu. In 2012, Tamil Nadu unveiled a solar policy, under which large power consumers (with a connected load of above 11 kVA) were asked to meet a share of their power consumption from solar. However, a year later, this obligation was challenged by the Tamil Nadu Electricity Consumers Association in court on the grounds that there was already a general renewable energy obligation upon commercial consumers, as per a Tamil Nadu Energy Regulatory Commission (TNERC) order of 2010. The rooftop obligation was dismissed by the courts and the plan as aborted.

Subsequently, Haryana has made it mandatory for all buildings with an area of 500 sq. yards or more to install solar rooftop systems of a minimum size of 1 kW or 5% of their power requirements, whichever is higher. The deadline for meeting the requirements is September 2015. In all likelihood, there will be large scale non-compliance to this mandate. The primary reasons for non-compliance is that the other aspects of the policy are not being effectively implemented. A central and state government subsidy has been announced but it is not available. Net-metering exists on paper but the process for providing interconnection has not yet been streamlined. In fact, hardly any permissions have been provided for net-metering. Over and above these challenges, the short timelines provided for publicizing and enforcing the mandates has created a situation where the public has not taken them seriously.


Recent reports

India Solar Map | December 2023

India Solar Map | December 2023

India Solar Map 2023 is an info-graphic report covering growth of utility scale solar sector – national and state-wise commissioned and pipeline capacity, leading market players and portfolio details of top 16 project developers. Capacity addition in 2023 fell 51% YOY to 5,924 MW taking total utility scale solar capacity to 59,840 MW. Total project pipeline stands at a record 74,161 MW.

India Corporate Renewable Brief | Q4 2023

India Corporate Renewable Brief | Q4 2023

This report provides an update on key trends and developments in the corporate renewable market including capacity addition, key players, policy & regulatory issuance, financing, PPA tariffs and other market trends.

India PV Module Intelligence Brief | Q4 2023

India PV Module Intelligence Brief | Q4 2023

This report captures quarterly trends in module demand and supply, import and domestic production volumes, supplier market shares, break-up by technology and rating, global market scenario, pricing trends across the value chain, key policy developments and market outlook.

India Solar Compass | Q4 2023

India Solar Compass | Q4 2023

This report provides a detailed update of all key sector developments and trends in the quarter – capacity addition, leading players, tenders and policy announcements, equipment prices, financial deals and other market developments. It also provides market outlook for the next two quarters.

Inter-state OA — opportunities and challenges

Inter-state OA — opportunities and challenges

Inter-state transmission system (ISTS) open access (OA) renewable market is growing strongly on the back of multiple drivers including a waiver from ISTS charges together with decarbonisation pressure on corporates and streamlined transmission connectivity approval process. However, the ISTS route savings are viable only for projects commissioned by June 2026 (at least 75% ISTS charge waiver).

India Corporate Renewable Brief | Q3 2023

India Corporate Renewable Brief | Q3 2023

This report provides an update on key trends and developments in the corporate renewable market including capacity addition, key players, policy & regulatory issuance, financing, PPA tariffs and other market trends.

To top