Loading...

Solar can be a win-win for all stakeholders


22 July 2013 | Jasmeet Khurana

Solar can be a win-win for all stakeholders

India is expected to have an energy deficiency of 6.7% in the coming year i.e. 2013-2014. The actual peak demand of power has exceeded the planned production in India for years, causing power outages for the average Indian consumer. The grid infrastructure too collapses at times under the strain of excess electricity loads during peak summer months. The Northern grid failure in 2012 disrupted life in the country and questioned the reliability of the grid infrastructure and load management in the country.

  • Consumers (residential, commercial and industrial) can hedge against rising power tariffs and power outages by going solar
  • The Indian government can reduce dependency on costly coal imports, reduce emissions and create new jobs
  • Solar could create new business opportunities for Indian DISCOMS

As a local, de-centralized source of power, rooftop solar allows consumers to be directly in control of their electricity supply. Consumers can produce and consume their electricity locally, making their electricity supply more reliable and secure. Further, the prices of electricity have increased drastically since 2011, with certain states such as Delhi, Uttar Pradesh and Tamil Nadu hiking power tariffs recently by 20%, 40% and 37%, respectively. With increased costs of fossil based power generation, this trend is likely to continue. Solar prices, on the other hand, have declined globally. System prices have decreased by 47% in the past ten years. Solar prices are expected to further decline at the long-term rate of 5-8% driven by technology improvements. Thus by switching to solar, consumers -residential, commercial and industrial, can hedge against increasing electricity prices.

For large-size commercial and industrial consumers, going solar is also a great way of fulfilling their 2% CSR obligation (mandated as per the Companies Bill 2011) as solar is also one of the few CSR initiatives that also make economic sense for such consumers; it could prove to be cheaper source of energy to meet their electricity needs. For instance, retail apparel store, Shoppers Stop, in Mumbai has installed a 30 kW solar system to promote itself as a ‘green’ company and to hedge against rising costs of power in Mumbai.

Considering the country’s increasing power demand and the rising costs of coal imports, it would also make sense for the Indian government to promote the adoption of solar. Adoption of solar would not only make the country less dependent on the costly imports but would also lead the way for a more sustainable growth. Further, the solar industry is capable of developing an ecosystem that creates jobs for system installers, transporters, project commissioners, system maintainers, grid monitors and power quality controllers. The solar industry has the capacity of creating more than 320,000 new full-time jobs by installing 100 GW of solar power. Considering the current unemployment rate of 3.8%, these new jobs could absorb a considerable amount of the country’s workforce. By focusing on cleaner energy and job creation the Indian government can project itself as a progressive administration to the world.

Finally, DISCOMs are the only stakeholders that may feel threatened by solar or may have concerns related to financial expense or the technical challenges associated with its integration. However, we believe that they should view solar as a business opportunity. With strained fossil fuel supplies, the need of curtailing carbon emissions and rising power demand, the shift to renewables is inevitable. By investing early enough DISCOMS could begin preparing for the future. Solar would, in fact, act as a supplementary source to the existing conventional energy system. Moreover, solar could also provide security in case of grid malfunction. e.g. Jodhpur DISCOM used wind power when the Northern and Eastern power grid failure occurred in 2012.

We believe that solar in India makes sense for all stakeholders. Its adoption will be primarily driven by the increasingly favorable economics of solar and by customer demand, but all stakeholders would actively shape its future by making solar their success too.

Visit Indiasolarhomes.com to calculate your solar potential and know more about residential solar in India.

Do you have any feedback? Leave a comment below.


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