A Sunshine Initiative

Subject: Schemes

Section: Environment

Context:

PM Modi launches a new rooftop solar power scheme.
Finance Minister Nirmala Sitharaman’s interim Budget address emphasized Prime Minister Narendra Modi’s ambitious plan to provide solar power to one crore households in India through rooftop solar panels. The initiative aims to bring substantial savings of ₹15,000 annually for households.

Eligibility and Subsidies

Households consuming less than 300 units of electricity per month are eligible to install a mid-sized solar system (1-2 kilowatt) under this program.
The government is set to provide a substantial subsidy, increasing from the current 40% to 60% of the system’s cost.
The remaining expenses will be financed by private developers affiliated with public sector enterprises linked to the Power Ministry, ensuring installation quality and reliability.

Net-Metering Mechanism

The program incorporates a ‘net metering’ mechanism, allowing surplus electricity generated by households to be sold back to the grid to offset the loan. The implementation of this mechanism may have complexities.
Although 300 units of monthly consumption may be modest for households with appliances like air conditioners and heaters, it represents a significant average consumption metric by national standards.
Approximately 80% to 85% of India’s 25 crore to 30 crore households consume between 100 and 120 units of electricity per month, making the plan’s eligibility criteria attainable.

Shift from State Discoms to Centre

Notably, the Center, rather than State power distribution companies (discoms), will lead the solarization efforts. Many discoms, often incurring losses, have shown little inclination to promote decentralized solutions like rooftop solar.
Given the discoms’ detailed knowledge of household-level power supply, bypassing them would not be a viable strategy.

Current Status and Industry Impact

Out of the targeted 40 GW of rooftop solar panels, only 12 GW have been installed to date, with household rooftops accounting for just 2.7 GW, the rest being commercial or building units.
This initiative can stimulate the domestic solar panel industry, with subsidies available exclusively for domestically produced panels.

Other Initiatives

1. Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM):

2. Scheme for Development of Ultra Mega Renewable Energy Power Parks:

Aims to establish Ultra Mega Renewable Energy Power Parks (UMREPPs) within the existing Solar Park Scheme framework.

3. National Wind-Solar Hybrid Policy:

Primary objective: Create a framework for promoting large grid-connected wind-solar PV hybrid systems.
Aims for efficient utilization of wind and solar resources, transmission infrastructure, and land.
Addresses renewable power generation variability, enhancing grid stability.
Encourages innovative technologies and combined operation of wind and solar PV plants.

4. Atal Jyoti Yojana (AJAY):

Launched in September 2016.
Focuses on the installation of solar street lighting (SSL) systems in states where less than 50% households have access to grid power (as per Census 2011).

5. International Solar Alliance:

Initiated jointly by the Prime Minister of India and the President of France in November 2015 during COP-21 in Paris.
Comprises 121 solar resource-rich countries, partially or fully located between the tropics of Cancer and Capricorn, as potential members.

6.One Sun, One World, One Grid (OSOWOG):

Aims to facilitate global cooperation and establish a worldwide interconnected ecosystem of renewable energy resources, with a primary focus on solar energy.

7. National Solar Mission (Part of National Action Plan on Climate Change):

A comprehensive mission dedicated to the promotion and development of solar energy in India.