2025 | The Year of the Prosumer

Driven by a confluence of technological advancements, supportive policies, and evolving consumer behaviour. The new year 2025 shall mark a new chapter ringing in the era of prosumerism.?

For the uninitiated, a prosumer is an individual who both produces and consumes goods or services, often simultaneously.

?I reckon that quite a few of us now are aware of, if not already participating in the prosumer economy. There’s a growing number of people who are growing their own vegetables/greens and also selling their produce to other interested members in the community/neighbourhood. Mushrooms and honey are the other examples.

?In the context of energy, a prosumer generates their own electricity, more often than not through a renewable source like solar power and may also consume electricity from the grid when needed.

?Several key trends and policies are converging to make 2025 the year of the prosumer in India:

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Declining Costs of Renewable Energy Technologies:

The cost of solar photovoltaic (PV) systems has plummeted in recent years, making them increasingly affordable for households and businesses. Very much like Moore’s Law the cost of PV modules comes down by 20-25% every time production doubles, which has been approximately every 3 years. From experience I can say that the price per watt of PV modules in India has fallen as much as 90% over the last 7 years. This trend should hold if not continue at same pace, further incentivising individuals to invest in rooftop solar installations.

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Additionally, advancements in battery storage technologies are making it more feasible to store solar energy for use during peak demand periods or grid outages, enhancing the appeal of prosumerism.

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Government Policies Promoting Renewable Energy:

The Indian government has implemented various policies to encourage the adoption of renewable energy, including the National Solar Mission, which sets ambitious targets for solar power generation.

The government has also introduced and enacted The Electricity (Rights of Consumers) Rules, 2020 that have cemented and simplified net metering policies, which allow prosumers to sell excess solar power back to the grid, further incentivising investment in rooftop solar systems.

The recent amendments to the rules facilitate faster installation and enhance the ease of setting up Rooftop Solar PV systems at the premises of prosumers.

Exemption has been given for the requirement of technical feasibility study, for systems up to a capacity of 10 kW.

The announcement of the PM Surya Ghar Muft Bijli Yojana aiming to put solar on the rooftop of 10MN households gives further fillip.

?Time of day tariffs are around the corner. The government is expected to release a new National Electricity Policy in 2025, which is likely to include provisions for promoting distributed renewable energy generation and supporting the growth of the prosumer market.

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Growing Awareness and Acceptance of Renewable Energy:

There is overall a growing awareness among Indian consumers about the benefits of renewable energy, such as environmental sustainability and energy independence. This increased awareness is also driving demand for solar PV systems and other renewable energy technologies.

Affluent households and communities once again, spurred by the policies of different state governments mandating a minimum level of solar energy production for residential construction on certain plot sizes are adopting solar.

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Technological Advancements & Evolving Consumer Behaviour :

Advancements in smart grid technologies are enabling better integration of distributed renewable energy sources, such as rooftop solar systems, into the grid. Smart meters, for example, can accurately track energy consumption and generation, facilitating net metering and other grid-interactive services. The decreasing cost of storage linked with advancements in alternate chemistry for energy storage, especially Lithium ion cells shall also see an increase in distributed energy. Coupled with smart meters this shall be a potent force for energy efficiency.

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Indian consumers too are becoming increasingly tech-savvy and environmentally conscious. They are more likely to adopt new technologies, such as smart home devices and electric vehicles, which can further enhance the prosumer experience.

The government's push for electric vehicles is expected to create a significant demand for charging infrastructure, which can also be used to integrate renewable energy sources, such as rooftop solar systems.

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The Bharat Story

The prosumer action shall not only be limited to the big cities and towns. It would be fair to expect the participation of rural India too.

There’s been a significant increase in the number of households with pucca (concrete) roof. The 99.9% electrification has connected not just villages to the grid but also aspirations. This as yet needs to be translated into quality and availability of energy.

The government's continued focus on rural electrification is expected to create new opportunities for prosumers, particularly in remote areas where grid connectivity may be limited.

Rural India has in the past been the stage for cooperative development. After milk and sugarcane electricity generation could be the next cooperative revolution waiting in the wings in the form of micro grids.

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In conclusion, the declining cost of renewable energy technologies, supportive government policies, growing awareness and acceptance of renewable energy, technological advancements, and evolving consumer behaviour are all expected to drive the growth of the prosumer market.

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2025 shall be a pivotal year for the rise of the prosumer in India.