Over the past decade, India's solar energy capacity has evolved significantly and the country is now ranked 4th in solar capacity globally. From 2.6 gigawatts (GW) in 2014 to 74.4 GW at the beginning of 2024, the installed solar capacity has increased 30 times. However, one part of India's solar energy ambition still falls considerably short-rooftop power generation. In 2015, the country was pushing its solar power generation target from 22 GW to 100 GW by 2022; but India missed the target as it only touched 63.3 GW. Out of this 100 GW, 40 GW was supposed to be from rooftop solar panels but till 2023, it hit only 11 GW, of which only 2.7 GW are in residential units.
Experts are not sure if the new deadline of March 2026 for rooftop solar energy (40 GW) will be met despite recent incentives and policy measures.
According to Ali Imran Naqvi, CEO, Gensol Engineering Ltd, the substantial subsidies allocated to coal-fired electricity significantly distort the energy market by keeping retail electricity prices artificially low. This creates an uneven playing field for renewable energy sources like rooftop solar, which, even with the average 30 pc subsidy provided under PM Kusum Yojana, struggle to compete on price.
"The upfront cost of a rooftop system can be a barrier, especially for rural households with lower disposable incomes. Limited access to formal financial institutions and lack of credit facilities further restrict adoption," Naqvi added.
According to a report by the Council on Energy, Environment and Water (CEEW) in 2022 found that despite subsidies, the upfront cost of a 3 KW rooftop system in India can be a barrier in rural areas.
This story is from the MAY 2024 edition of Entrepreneur magazine.
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This story is from the MAY 2024 edition of Entrepreneur magazine.
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