Rooftop solar power systems: Shinning a light on better tomorrow

With an outlay of Rs 75,000 cr, it's aimed at installing rooftop solar panels in 10 million households

The Centre is easing the installation of rooftop solar systems in households through a slew of new schemes and regulations. Prime Minister Narendra Modi recently announced the PM Suryaghar Yojana (PMSY) scheme, which prompted the Ministry of Power to revise the rules for consumers eager to get solar panels fixed easily on their rooftops.

Here is a rundown on the new scheme, installation process of panels and their benefits

What is PMSY?

On February 13, Prime Minister Modi announced the new scheme. With an outlay of Rs 75,000 crore, it’s aimed at installing rooftop solar panels in 10 million households. Announcing the scheme, Modi on his social media handles said, “From substantive subsidies, which will be given directly to people’s bank accounts, to heavily concessional bank loans, the Central Government will ensure that there is no cost burden on the people. All stakeholders will be integrated into a National Online Portal which will further convenience.”

The National Portal which is now being spearheaded by the state-owned financier REC Ltd already has 20 banks and non-banking financial institutions that will lend to households seeking solar rooftops. Eight public sector utilities (PSUs) under the power ministry will also take forward the scheme in several states.

The subsidy under PMSY would be 60 per cent of the total project cost and the balance would be the loan. Power ministry officials said the loan need not be taken by the household but by the PSU implementing the project. “The PSU will set up the project and provide free solar electricity to the house as much as they require. The surplus electricity from the house would be sold to the respective power distribution company and proceeds from this sale would be used to pay off the loan,” the officials said.

The enhanced focus on decentralised and grid-connected rooftop solar systems is in line with India’s climate action targets. The country aims to have 500 gigawatts of renewable energy capacity by the end of this decade.

How to get a solar system on your terrace?

There are currently two modes of getting a rooftop solar. One is under which the PSUs will install it and the other is to apply for it at the national portal.

Each of the eight PSUs has been allotted states to fit solar systems on rooftops of those houses whose electricity consumption is less than 300 units. The consumers will own the solar rooftop system once the loan is repaid and can then earn money from the sale of electricity from it, the officials explained.

The option is for everyone who wishes to install a solar rooftop system in their house. The national portal allows the submission of applications to a consumer’s respective power distribution company (discom). With the new scheme in place now, different state-level portals would be subsumed under an umbrella portal. The application portal is under construction and it will be active soon.

To install the solar system, it’s essential to provide basic details of the house and contact details to receive a visit from government-impanelled vendors. REC executives said, existing vendors have been kept under scrutiny and there will be a selection process. REC, which has executed several central schemes for electricity access across the country will also deploy its own vendor network and state/district level field offices, said executives.

What will the consumer gain?

A solar rooftop system requires no additional cost after the initial capital cost of installation. Since it requires no fuel, there is no energy cost for a solar system. It helps bring down the electricity bill of the household either partially or fully.

The recent amendments to the Electricity (Rights of Consumers) Rules, an exemption has been given for the requirement of a technical feasibility study, for systems up to a capacity of 10 kW. For systems of capacity higher than 10 kw, the timeline for the same has been reduced to 15 days from 20. For distribution system strengthening for rooftop solar PV systems up to 5 kW, capacity discoms will do it at their own cost. Further, the timeline for the distribution licensee to commission Rooftop Solar PV systems has been reduced from 30 days to 15 days.

For those consumers whose solar capacity is more than their requirement, they can sell the surplus solar power to the discom and earn from it. This requires setting up of net metering by the discom and a grid connection. A 2kw-5kw system is ideal for a rural household, while 5-10 kw for an urban one, ranging from a 2bhk to a bungalow.