Menu

Rooftop Solar

Diversification Strategy: IOC’s Foray into Petrochemicals and Renewable Energy
Business, Equities, Markets - January 15, 2025

Addition of 2 more payment methods for Rooftop Solar Installation

Addition of 2 more payment methods for Rooftop Solar Installation

The Indian Ministry of New and Renewable Energy Ministry of India has announced new guidelines in terms of payment methods for installation of solar panels on rooftop projects. The new guidelines approve two more payment methods. These guidelines are approved in context of PM Surya Ghar: Muft Bijli Yojana

PM Surya Ghar: Muft Bijli Yojana
On 19th February, 2024, the scheme was approved in the Union Cabinet. The goal of the scheme was to install solar panels on rooftops in one crore households all over India and provide about 300 units of free electricity per month. Its aim is to protect the environment by reducing 720 million tonnes of CO2 emissions in the next 25 years. Its objective is to add around 30 GW of solar capacity throughout India.

New Guidelines
To guarantee payment security in the transaction process, two more payment methods were added. It is also to ensure that the subsidy is granted to the households opting for payments through Utility-led aggregation (ULA) models and Renewable Energy Service Company.

The renewable ministry’s guidelines under the PM-Surya Ghar: Muft Bijli Yojana is to implement components such as Central Financial Assistance and Payment Security Mechanism. These components are going to be implemented to ensure smooth function of RESCO models or the utility-led aggregation models. Its purpose is to ensure that benefits from subsidies are reaching individuals. It also undertakes the responsibility of the safe installation process of solar panels.

At present, around 100 crore are reserved for the payment security mechanism purpose. It is to ensure that investments in the RESCO-model will be safe and more secure. Apart from Rs. 100 crore of funds, more funds and grants will be approved for the investment in the RESCO model in the future to support investment in this model.

About the RESCO and ULA model
The RESCO model refers to third party firms making investments in the installation of rooftop solar systems. In this model, consumers of electricity usage have to only pay for the electricity consumed by his household and not have to pay for other charges associated with the installments. The consumer pays charges to the RESCO which is lower compared to conventional electricity charges.

The ULA model refers to the power utility firms or state designated firms who install rooftop solar systems in place of individual households.

Purpose
Both ULA and RESCO models give households an opportunity to install solar systems with no cost. Its primary aim is to provide homeowners access to clean electricity as well as make it affordable for them. It also aims to achieve broader elimination of financial barriers.

The renewable ministry further cleared that these new guidelines are the supplement to the existing model. The consumer can use the existing method known as capex mode for installation of rooftop solar systems. The consumers can use the existing method by visiting the national portal for applying and managing installment of rooftop solar systems.

These two additional payment models will work alongside the existing method to give more options for the consumers in terms of affordability as well as security.

The image added is for representation purposes only

Railway Sector’s Budget Allocation and Stock Performance: Insights for Investors

, , 0 Comment
Read More
India’s Power Capacity Expands Significantly: From 305 GW to 476 GW Over Ten Years
Business, Equities, Markets - January 15, 2025

Budget 2025-26: A Plan to Address Key Gaps in the Renewable Energy Ecosystem

Budget 2025-26: A Plan to Address Key Gaps in the Renewable Energy Ecosystem

Overview and Current Scenario
The renewable energy sector is at a pivotal point as India prepares for the Union Budget FY25–26. Industry experts have expressed their expectations for additional funding, legislative actions, and support systems to hasten India’s shift to clean energy. The government’s dedication to sustainability was demonstrated by the 2024–25 budget’s significant rise in the renewable energy provision, which went from the previous year’s revised estimate of Rs 7,848 crore to Rs 19,100 crore.

Energy is pulsing through the most recent renewable energy report card. According to the latest report released by the Ministry of New and Renewable Energy, India’s total installed capacity witnessed a surge of about 15.84%, 209.44 GW in December 2024, from about 180 GW in the period last year. Compared to the 13.05 GW installed in 2023, the total capacity added in 2024 was 28.64 GW, a 119.46% increase year over year. Solar power led the rise in 2024 with the addition of 24.54 GW, but hydro used to be a significant contributor to the expansion of RE capacity. Its cumulative installed capacity increased from 73.32 GW in 2023 to 97.86 GW in 2024, a 33.47% increase. With an extra 3.42 GW added in 2024, the overall wind capacity increased to 48.16 GW, a 7.64% increase from 2023. Wind energy also played a role in this expansion.

Now, at about 210 GW, RE capacity has surpassed 42% of its 2030 objective of 500 GW. To meet the RE target set by Prime Minister Narendra Modi at the Glasgow climate summit in 2021, an additional 290 GW will need to be added over the course of the following six years. Even though last year’s yearly capacity gain was remarkable by historical standards, it is insufficient to reach 500 GW of RE capacity by 2030. To reach this goal, the yearly run rate will need to increase to around 50 GW.

Even while everyone involved in the RE sector is optimistic, it suggests that additional actions and policies are required to accelerate the development of RE capacity. The upcoming Union budget might provide the perfect opportunity to address some of the gaps preventing the quick integration of RE power.

Key Issues hindering the progress of the RE Sector

Rooftop Solar suffers from slower growth
For utility-scale projects, rooftop solar units are a convenient approach to rapidly increase RE capacity due to gestation time and other considerations. The PM – Surya Ghar: Mufti Bijli Yojana is a positive start in this area as it intends to employ rooftop solar units to illuminate one crore houses with an investment of Rs 75,000 crore.

However, the plan appears to be moving at a slower pace than estimated. According to estimates from industry specialists, over 6 lakh installations have been completed to date. This must rise quickly, and the target may have to be expanded in order to meet the desired capacity in the near future. According to sources, the national goal is to reach 40 GW of rooftop solar power by 2025, even if targets in the RE sector are always changing. Currently, the capacity of rooftop solar power in India has reached up to 13 GW (as of the latest reports updated in 2024). Nevertheless, the scheme appears to be moving slowly. According to estimates from industry specialists, over 6 lakh installations have been completed to date. This must rise quickly, and the target may have expanded. Further, the national goal is to reach 40 GW of rooftop solar power by 2025, even if targets in the RE sector are always changing. The capacity has reached 13 GW through the end of 2024.

Issues ranging from financial obstacles to legal restrictions and a lack of awareness are blamed for the sluggish growth. For the rooftop solar project to be successful, these issues must be addressed in the February Union budget.

Energy Storage acts as a barrier to RE sector development
Energy storage is another issue that frequently impedes the advancement of RE. India’s energy storage system has not kept up with the country’s increased RE generation. As a result, there is an imbalance between the supply and demand for energy, making the grid more susceptible to blackouts and inefficiencies. India is now obsessed with two forms of energy storage: pumped storage and batteries. These projects may not be able to meet the 60 GW of storage capacity required by 2030, based on their present and planned state.

India needs to take a multifaceted approach in order to get past this storage barrier and realize its full RE potential. This entails making investments in the development of novel battery technologies, broadening its range of energy storage products, and cultivating an environment that facilitates the quick implementation of storage solutions. Thus, by offering incentives to promote the creation of new storage technologies and their implementation, the February budget can start the process.

Smart Meters still in incubation?
Another weak link that prevents RE growth is grid infrastructure. The distribution companies in different states must be connected, and smart meters must be quickly deployed, in order to transition to a clean electricity system. Once more, there is a significant discrepancy between execution and target. Approximately 7.3 million smart prepayment meters have been installed nationwide thus far under the Revamped Distribution Sector Scheme (RDSS), according to statistics presented to Parliament in December of last year.

With an investment of Rs 3.3 lakh crore, the program, which was introduced in July 2021, aims to install over 250 million smart prepaid meters by March 2025. Thus, the lack of progress in smart meter development raises a legitimate question.

Conclusion
There is an opportunity to examine the problem and provide improvements in the Union budget for 2025–2026. While there are many opportunities in RE, there are also many challenges. It is clear that a yearly budget is insufficient to handle every problem. These yearly exercises, however, give the government a chance to address any current issues that could hinder the expansion of RE.

The image added is for representation purposes only

Railway Sector’s Budget Allocation and Stock Performance: Insights for Investors

, , , 0 Comment
Read More
Diversification Strategy: IOC’s Foray into Petrochemicals and Renewable Energy
Business, Equities, Market News, Markets - September 12, 2024

India's Rooftop Solar Capacity Rises 26% to 1.1GW in H1 2024

India’s Rooftop Solar Capacity Rises 26% to 1.1GW in H1 2024

India increased its rooftop solar energy capacity by 26% in the first half of 2024, adding 1.1 gigawatts (GW) compared to 873 megawatts (MW) during the same period in 2023. This indicates that India has achieved substantial success in increasing its rooftop solar energy capacity. The US-based analysis company Mercom Capital reported that rooftop solar installations are increasing at an accelerating rate, particularly in the second quarter of 2024.

Growth in Rooftop Solar Installations: India installed 731 MW of rooftop solar systems during the second quarter of 2024, which ran from April to June. This represents a notable 89% increase over the 388 MW added in the same period previous year. The paper states that as of June 2024, India had 11.6 GW of installed rooftop solar power. This increase indicates a tremendous rise in the use of rooftop solar energy across the country.

Industrial and Commercial Contributions: The study also examines how various industries have contributed to the expansion of rooftop solar capacity. With more than 23 percent of the installations during the quarter, the industrial industry was the biggest contributor. Concurrently, the government and commercial sectors made up 0.7% and 4% of the capacity additions, respectively. This demonstrates that although rooftop solar is being adopted by industrial users at the forefront, the commercial and government sectors still have room to develop.

Government Initiatives’ Effects: The Prime Minister’s “PM Surya Ghar: Muft Bijli Yojana” rooftop solar project is one of the main causes of the recent spike in rooftop solar installations. Customers’ interest in this program has grown significantly, which is motivating more homes and businesses to install rooftop solar panels. Raj Prabhu, CEO of Mercom Capital Group, stated that this government program has led to a notable growth in the rooftop solar business in India. He was upbeat about the residential sector’s installation rates continuing to improve gradually in the upcoming months.

Difficulties in the Rooftop Solar Sector: Prabhu cautioned about possible obstacles that might impede the expansion of the rooftop solar industry, albeit its encouraging trajectory. Problems including solar module availability, component shortages, and cost increases could be major roadblocks. In order to maintain the current trajectory of rooftop solar installation development, these concerns must be rapidly addressed.

State-by-State Contributions: As of June 2024, the top 10 states in India accounted for the majority of the nation’s rooftop solar capacity, according to the research. When combined, these states were responsible for more than 78% of rooftop solar installations In terms of installations, Gujarat, Maharashtra, Rajasthan, Kerala, and Karnataka were the top states. These states have paved the way for other states to follow by actively promoting and embracing rooftop solar energy.

India’s rooftop solar sector is undoubtedly expanding, as seen by the notable capacity gains that are seen every year. Initiatives from the government, especially the PM Surya Ghar: Muft Bijli Yojana, have been instrumental in quickening this rise. Although rooftop solar has become most popular in the industrial sector, there is still a lot of room for growth in the residential, commercial, and government sectors as well. However, resolving the issues with the supply chain and cost considerations is crucial to maintaining this development. Preserving the momentum behind rooftop solar installations will need guaranteeing the accessibility of solar modules and components at reasonable costs.

Success in the rooftop solar industry would be critical as India works to meet its targets for renewable energy. India can keep growing its solar energy capacity and contribute to a more sustainable and greener future with steady policy backing and business cooperation. While the current state of affairs is encouraging, much work remains before rooftop solar energy in the nation can reach its full potential.

The image added is for representation purposes only

Maruti Suzuki’s new facility faces short delay; 2025-26 production kick-off

, , , 0 Comment
Read More