Emails (Others): Something to Think About

Tuesday, 21 November 2017

Something to Think About

“ Rent – a – Roof “ for Solar Power

Hindustan Times (18 Nov) carries following editorial :

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“ Shining the light on Solar Energy “

The ‘rent-a-roof’ policy will help developers and householders

The Centre is planning a rent-a-roof policy to support its ambitious plan to generate 40 gigawatts (GW) of power from solar rooftop projects by 2022, MINT reported this week .

If the new policy comes through, solar developers can rent rooftop space, fit it with solar panels, and feed the power to the grid . If the policy takes off, householders will not have to bother themselves any more with the time-consuming, bureaucratic nitty-gritty that precedes the installation of panels.

India offers a big opportunity for solar energy. Its 750 GW potential is driven by roughly 300 sunny days a year.

Despite this, and attractive fiscal incentives, households haven’t exactly taken to solar power. As a result, financial incentives are not being utilised and consumers are not availing significant potential savings on their electricity bills, even as the burden on electricity distribution companies to meet power demand from the grid is growing.

Large solar plants require land, lots of it. Therefore, it is important that policies support rooftop and decentralised solar power generation, both off grid and on.

The proposed policy could empower the solar energy industry to focus on households; it also gives every home a chance to be energy independent.

Let us evaluate the possible impact of this initiative in the following background :

· Government’s Solar Power target is = 100 GW by 2022 , of this

· 60 GW from ground-mounted / grid-connected projects

· 40 GW from roof-top projects

· As of Sept 2017 ,

# ground-mounted solar has reached only 13.9 GW

# roof-top capacity has reached only 790 MW

# taking total Solar installed capacity to 14.7 GW

· During the first 6 months of this fiscal, Solar capacity added was 2.4 GW

This means that , during the next 60 months ( Nov 2017 – Nov 2022 ) , we need to install ( 100 GW – 14.7 GW ), 85.3 GW of Solar ( ground + roof )

That is nearly 1.5 GW / month ( month after month after month , for next 60 months )

Now , 1 GW installed capacity of Solar costs approx. 1 Billion dollar ( = Rs 6500 Cr )

That means , we must find Rs 10,000 Cr / Month , for 1.5 GW

Every month for the next 60 months !

Who has this kind of money to invest in Solar Power projects – especially when DISCOMs which have signed definitive / legally-binding PPA with power producers are backing out and demanding that producers reduce their price – already , the lowest in the World ?

Dear Shri Piyush Goyalji / R K Singhji :

If you are looking for a viable solution ( something experts won’t recommend since it would be politically incorrect ? ) ,which :

· Brings in , Rs 10,000 cr / month of investment for next 60 months

· Enables Power Producers to raise “ Zero Risk “ capital at “ Zero Per cent “ interest

· Delivers power to consumers at Rs 1 / Kwh , ( with 5 % reduction in tariff every year )

· Turn India into “ the most envied and most copied “ Low Cost Economy “ of the World , capable of reversing its negative trade balance ( through exports ) with all countries

then, please read following email sent to you earlier :