Exploring the Future of Solar Energy in India

The energy sector is a crucial focus for the government, which is actively seeking innovative ideas to enhance processes through data capture and analysis. As of the end of 2022, India ranks 5th globally in solar PV deployment, with solar power capacity reaching approximately 70.10 GW by mid-2023 (according to REN21’s Global Status Report 2023 and IRENA’s Renewable Capacity Statistics 2023).

In response to this growth, several state governments in India are introducing regulations for peer-to-peer (P2P) solar energy transactions using blockchain technology. This initiative aims to foster decentralized energy trading, enhance efficiency, and promote technological advancements.

Recently, Karnataka, Delhi, and Uttar Pradesh have proposed measures to facilitate P2P energy trading. This approach will allow citizens with rooftop solar systems to sell excess power directly to other consumers, potentially at lower rates than those offered by distribution companies.

As solar power becomes increasingly prevalent in India, it presents an opportunity for both financial gain and efficient energy use. With a solar panel on your roof, one could generate electricity and even sell surplus power back to the grid.

In this blog, we will delve into what solar energy is, explore various schemes, and discuss the benefits and processes involved.

Solar Overview

• Historical Significance: The Sun has been revered as a life-giver since ancient times; industrial advances revealed its potential as an energy source.
• Solar Potential in India: India receives about 5,000 trillion kWh of solar energy annually, with 4-7 kWh per sqm per day in most areas.
• Harnessing Solar Power: Solar photovoltaic power offers scalability, distributed generation, and rapid capacity addition, beneficial for both rural and urban areas.
• Advantages: Rural Benefits: Off-grid applications support cooking, lighting, and other needs, improving living standards and reducing health risks.
• Economic Impact: Creates employment, reduces the burden of fuel collection, and enhances economic activities in villages.
• Energy Security: Solar is a secure energy source, with the potential to meet the country's entire power needs if effectively captured.
• Growth and Impact: Solar energy has significantly influenced India's energy landscape, contributing to grid-connected power generation and sustainable growth.
• National Solar Mission (NSM):Initiation: Launched on January 11, 2010, to promote sustainable growth and address energy security.
• Goals: Establish India as a global leader in solar energy, accelerate technology diffusion, and support climate change goals.
• NISE Assessment: Estimated solar potential of about 748 GW with 3% of wasteland covered by PV modules.
• Nationally Determined Contributions (NDCs): Aims for 50% of installed capacity from non-fossil sources and a 45% reduction in emission intensity by 2030.

Government Scheme for Solar Energy

• Announcement: Finance Minister Nirmala Sitharaman introduced the 'Rooftop Solar Scheme' or 'PM Surya Ghar Muft Bijli Yojana' in the Interim Budget 2024-25.
• Scheme Objective: Provide free electricity up to 300 units per month to 1 crore households.
• Installation Details: Solar panels will be installed in homes to supply power and generate additional income from surplus electricity.
• Financial Support:

- Subsidies: The Central Government offers substantial subsidies directly to bank accounts.

- Loans: Concessional bank loans are available to eliminate cost burdens.

- Coverage: Government subsidies covers up to 40% of solar panel installation costs.

• Savings:

- Household Savings: Expected annual savings of Rs. 15,000 to Rs. 18,000 crores from free solar electricity and surplus power sales.

- Government Savings: Estimated annual savings of around Rs. 75,000 crores in electricity costs.

• Target: Install solar panels in 1 crore homes across the country.

Vision of the Schemes

• Annual Savings: Households could save up to Rs. 15,000 to Rs. 18,000 crores from free solar electricity and selling surplus power to distribution companies.
• Electric Vehicle Charging: Potential to support charging infrastructure for electric vehicles.
• Entrepreneurship: New business opportunities for vendors involved in the supply and installation of solar panels.
• Employment: Job creation for youth with technical skills in solar panel installation, manufacturing, and maintenance.
• Government Savings: Reduction in electricity costs for the government.
• Renewable Energy: Increased utilization of renewable energy sources.
• Carbon Emissions: Reduction in carbon emissions.

Eligibility Criteria

• Applicants should be residents of India
• Applicants should belong to poor and middle-income households
• Applicants should have their own residence with a roof suitable for installing solar panels.
• Applicants must have a valid electricity connection.
• Applicants should not have availed of any other subsidy for solar panels.

Installation Subsidy and Process

Under the Rooftop Solar Scheme, the government will offer the following subsidies for solar panel installations: The application can be submitted on link https://www.pmsuryaghar.gov.in/

• For systems up to 2 kW: Rs. 30,000 per kW
• For additional capacity up to 3 kW: Rs. 18,000 per kW
• For systems larger than 3 kW: Maximum total subsidy of Rs. 78,000

For Group Housing Societies (GHS) or Resident Welfare Associations (RWA):

• Subsidy for common facilities: Rs. 18,000 per kW
• EV Charging Facilities: Up to 500 kW capacity at Rs. 3 per kW per house

The maximum limit includes individual rooftop installations by residents within the GHS or RWA.

Photovoltaic panels, commonly referred to as rooftop solar panels, are mounted on the roofs of houses or buildings and connected to the central power supply unit. This setup reduces dependence on grid electricity, leading to cost savings.

The financial benefits are further enhanced through Net Metering. This system allows surplus energy generated by the solar panels to be sold to electricity distribution companies at a fair rate. As a result, overall electricity bills are significantly reduced by offsetting the amount consumed with the energy contributed.

Steps to Register and Sell Excess Solar Energy

• Register in the portal https://www.pmsuryaghar.gov.in/
• Login with Mobile number and apply for Rooftop
• Once the feasibility is approved, get the solar installed by any approved Vendor by DISCOM
• Once install submit the plat details and get the Net meter
• Commissioning Certificate will be generated by DISCOM after installation and Verification
• Once you receive the commissioning report, submit the bank details and cancellation cheque through the portal and get subsidy within 30 days.
• After the process completes, the Net-Metering system which would be calibrated by the local DISCOM. This set-up measures the Export & Import of Electricity from your Roof-top Solar Plant. If your Solar Electricity production is higher than your internal consumption, then you would get paid by the DISCOM at a rate per unit agreed upon in the PPA for 25 years.
• Selling excess solar power back to the grid can earn you money. The amount is paid a set rate by the DISCOM, known as a feed-in tariff. This rate is decided by state regulatory bodies. It is key to the success of grid-connected solar setups.

Net Meter : Net metering is used with rooftop systems that provide personal electricity, with any extra power sent to the grid. If the demand exceeds the power generated, extra electricity must be imported from the grid.

A bi-directional meter tracks both the power sent to the grid and the power imported. the monthly bill reflects the net amount of power used or produced, and receive payment from the government when the production exceeds the consumption at a fixed rate.

Selling Process

Selling Solar Energy Through Net Metering:

• Net Metering Overview: The government introduced net metering to allow consumers to sell solar power back to the grid. A net meter is installed to measure both the solar energy exported to and imported from the grid. Example: If you use 150 units of electricity in a month and your solar system generates 150 units, you would have a zero electricity bill.

Challenges: Net metering doesn't account for service and metering charges, leading the government to explore a new approach called gross metering.

Selling Solar Electricity Through Gross Metering:

• Gross Metering Overview: Under gross metering, you receive two bills from the Discom: one for the electricity you consume and another for the power you export. The export rate is usually lower than the import rate. Example: If you consume 200 units in a month and the rate is Rs. 7 per unit, your bill would be Rs. 1400. If you export 100 units at Rs. 3 per unit, you receive Rs. 300. Your payable amount would be (200 7) - (100 3) = Rs. 1100.

Challenges: Consumers face delays in receiving payment for exported power (usually 3-4 months), leading to dissatisfaction.

Current Update: Net Billing: The government is now shifting to a new method called net billing to address these issues.

Example: For example, you need 200 kWh (Units) per month and your solar panel system produces 100 units in a month but during a monthly you import electricity from the Discom is 150 units. It means the calculation is (150*7) – (50*3) = Rs 900 is the payable amount to the Discom.

Policies and Regulations

• State Policies: Each state in India has its own regulations regarding net metering, including eligibility criteria, capacity limits, and the rate at which excess energy is purchased. It’s essential to check the specific policies in your state.
• Central Government Guidelines: The Ministry of New and Renewable Energy (MNRE) provides guidelines that states often follow, promoting solar energy adoption and net metering.
• Grid Connectivity: Ensure your solar system meets the technical standards required by the local electricity distribution company (DISCOM).

Conclusion

Conclusion

As India advances its solar energy initiatives, the government's efforts to innovate and enhance processes through new schemes and technologies are increasingly significant.

The introduction of the Rooftop Solar Scheme aims to make solar energy more accessible and affordable, providing substantial subsidies and financial support for households. While methods like net metering and gross metering have their challenges, the shift towards net billing promises to address consumer concerns and streamline the process.

As the government continues to develop and refine policies, solar energy will play an increasingly vital role in meeting India’s energy needs and contributing to a greener future.

In my next blog, I will talk about the current challenges and how emerging technology will help to overcome it.