Shine Bright, India: National Push for Rooftop Solar with PSU Support

The government is actively engaging power sector entities, including NTPC, NHPC, Power Grid Corporation, and SJVN, to support an initiative aimed at promoting the rooftop solar program. This initiative encourages households with low power demand to install solar panels on their rooftops. New guidelines are expected to enable public sector units (PSUs) to cover the expenses of solar panel installation and compensate homeowners for utilizing their rooftops.

PSUs are projected to sell excess power generated from these solar panels, creating a revenue stream. Homeowners hosting the panels will receive rental payments for the use of their rooftops. The project will establish subsidiaries dedicated to executing the rooftop solar projects.

It is anticipated that other state-owned enterprises, such as DVC, Energy Efficiency Services, and THDC, may also invest in this field. REC is the nodal agency overseeing this initiative. The government commenced Phase-II of the rooftop solar plan in March 2019, with a target of achieving 40 GW of rooftop solar capacity. To date, the government has added 4000 MW of capacity in the residential sector by providing financial assistance and incentives to distribution companies (discoms).

This program aligns with the central financial aid framework proposed by the Ministry of New and Renewable Energy (MNRE) for rooftop solar projects.

News by Rahul Yelligetti