Perspective since the issue of the model net metering regulations in 2013, only a few states have
lot of sense if a new sub category can be placed in the existing home loans to install solar
begun actual implementation of the policy on the ground. The slow or patchy progress
power in already constructed houses at the same interest rate, without having the need
in the net-metering policy can be attributed primarily to issues like lack of clear policy
to hypothecate the whole house instead just the installed solar power system. The finance
frameworks, passive opposition from DISCOMs and insufficient awareness cum training
would be easier to access and the banks can do the local due vigilance on the consumer’s
at the local utility level.
credit history instead of a central rating requirement.
There needs to be uniformity at the policy level to catalyze the adaptation of rooftop
Consumer perception of risks and performance
solar for consumers, uncertainty in regulations is slowing the pace of rooftop installation
Even after a decade of proliferation, solar power is still perceived as a relatively new
by C&I consumers. Taking cues from the Maharashtra net metering fiasco, where the
technology especially amongst the retail consumers and therefore there is a perception
DISCOM wanted to revert the net metering to gross metering, thus putting the whole
that it may not perform as expected over its lifetime. Also, there are trust issues as several
rooftop market in jeopardy,
entrepreneurs in the rooftop solar market are comparatively new with a little track record
it is time that the central government steps in and helps
various DISCOMs create a policy environment across the country around net-metering,
and maintenance of quality and customer service is always uncertain.
thus making stable and uniform laws that won’t be subject to whims and fancies of
Few policy level steps that the agencies involved can take to reduce the confusion about
individual state distribution companies. This will help build investor confidence and attract
the retail are:
investments in the sector.
� The involvement of too many agencies like MNRE, IREDA, SNA, and electricity board and electricity regulatory commission makes the development of solar PV projects difficult.
Though it is easier said than done as it would dismantle the equilibrium created by the cross-subsidies that becomes a taboo even to talk about.
� Generation-based incentives should be offered rather than subsidy. This data can be easily available in electricity bills, this would make the financing of the plant also easier.
Access to Finance
� The net metering procedure should be time-bound with online single window process
Limited access to debt finance due to perceived high risks and suspicion about performance
on ground and not on papers as it is now, and the net meter should be fitted within one
for this relatively new sector within the financial community is a deterrent to growth in
month from the date of application.
solar. Banks and FIs are reluctant to lend to solar rooftop projects and borrowing costs can
Even though India has the lowest capital cost per MW globally to install solar power plants
be as high as 12% or more when they do lend.
and the current installation have grown exponentially in the past half-decade, yet solar only
Due to the smaller size of the projects in the rooftop solar sector, developers do not
accounts for 3% of the total power consumed in the country, and about 10% of the total
approach banks for loans because of the proportionately higher transactional cost per
installed power capacity of India. This on a positive note leaves the sector accessible for
unit of the project cost. Here the small retail consumer has to go through the personal
growth in the coming decade.
loan route if incase he desires to finance his rooftop solar power plant. It would make a
Mr. Sushil Sarawgi, Director, Kor Energy India Pvt Ltd Better awareness about the benefits of rooftop solar needs to
Haryana face a lot of problems in getting adjustment of exported units in the electricity
be created for residential, commercial and industrial sectors
bills. This leads to bad word of mouth publicity about Net Metering benefits from the
by government, social and industrial bodies as well as solar
existing users of rooftop solar energy.
industry. Good projects should be showcased to consumers and
Delay in disbursement of subsidy is one major reason why residential customers were
live existing projects will help them get better understanding
not going for rooftop solar. Now with new policy of upfront subsidy there should be
and develop confidence in technology.
better adoption of rooftop solar energy by them.
Bottlenecks related to net metering approval needs to be taken care of, and the process
There is a subsidy for cold storages from Horticulture Board for adoption of Rooftop
has to be made much more consumer-friendly. Many customers are apprehensive of
Solar by them up to 35 percent of project cost. As there are a good number of cold
the problems that they might have to face to get those approval and because of this,
storages in both Punjab and Haryana. If this subsidy benefit is properly marketed, it
they delay decisions for going solar. Post net metering also, customers especially in
will result in better adoption of rooftop solar by cold storage facilities in the states.
Mr. Brhamesh Alipuria, Director and Founder, Direct Watts SET Pvt. Ltd. Net Metering process clarity and time bound approvals There has to be clarity within the DISCOMs (PSPCL in Punjab) (UHBVN and DHBVN in Haryana) about the Net metering process and the required documentation. The documents for submissions must be clearly defined. Approval must be time bound. There are going to be fundamentally 4 stages: 1. In principal approval required for setting up of net metering and solar connection as per regulation of the state. 2. Electrical Inspection / CEIG required once the solar plant is installed by the consumer. Defined checklists should be there on the basis of objections may be raised. 3. Meter checking and changing also known as plant commissioning as the maximum benefit of net metering can only be achieved, once the Net Meter has been replaced. 4. Net Metering Agreement often ignored and unaware, the net metering agreement is not done with the user, where the benefit of time can be challenged for the user. Many clarifications are required on validity of such agreement and benefits to the consumer.
Futile Empanelment Process Once the above process is streamlined, the requirements for vendor empanelment would not be there. This is the process in which governments are wasting a lot of their
w w w . s o l a r q u a r t e r . c o m
time and money. It is also confusing the consumers. The rates being discovered are only bringing the quality of the system down and are often not practical.
No Need for Awareness Programs or Subsidy In my experience, if the government focuses only on the first step and executes it properly, the advantages of solar power along with the various industries associated with it, will automatically be promoted among the masses. Further, with the current prices, the system is affordable to most who understand the benefits of it and there is no need for subsidy. Subsidy process might be hampering the growth of solar at this time.
Financing and Tax Benefits Instead of subsidy, the government should instruct banks to develop products for solar financing like vehicles and homes. Further, the GST on solar should be reduced and Individual Tax Benefits could be provided to encourage quick adoption of solar.
Growing Demand The power demand is expected to grow rapidly with the introduction of Electric Vehicles (EVs). Further, industry boosts would lead to growth in demand. In view of the current scenario, lack of awareness amongst
Solar SolarQuarter Quarter••January January2020 2020 29
