A Sunshine Initiative
- February 5, 2024
- Posted by: OptimizeIAS Team
- Category: DPN Topics
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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:
3. National Wind-Solar Hybrid Policy:
4. Atal Jyoti Yojana (AJAY):
5. International Solar Alliance:
6.One Sun, One World, One Grid (OSOWOG):
7. National Solar Mission (Part of National Action Plan on Climate Change):
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