Rooftop Solar in India's Energy Sector | 29 Jun 2024

Source: TH

Why in News?

As of March 2024, India's total installed rooftop solar (RTS) capacity stood at 11.87 gigawatts (GW), with a notable increase of 2.99 GW in installed capacity during 2023-2024. This highlights the substantial transformative potential of RTS within India's energy sector.

What is the Rooftop Solar Programme?

• About: 

  • The government introduced the Rooftop Solar Programme in 2014 to promote rooftop solar installation. 

  • The original target was 40 GW installed capacity (out of 100 GW by 2030) by 2022 but the goal was not met by 2022,  the deadline was extended to 2026.

    • Rooftop solar panels are photovoltaic panels installed on the roof of a building and connected to the main power supply unit.
• Objective: 
  • To promote grid-connected solar rooftop systems on residential buildings.
• Historical Context: 
  • This program was launched as part of the Jawaharlal Nehru National Solar Mission in 2010, the Initial target was 20 GW of solar energy by 2022 then the revised target was 100 GW by 2022, including 40 GW from RTS.
• Key Initiatives under Rooftop Solar: 
  • SUPRABHA (Sustainable Partnership for RTS Acceleration in Bharat). 
  • SRISTI (Sustainable Rooftop Implementation for Solar Transfiguration of India).
• Implementation and State Performance: 
  • Centrally driven by the Ministry of New and Renewable Energy (MNRE)  and executed through state nodal agencies and power distribution companies.
    • Top performers States: Gujarat, Maharashtra, Rajasthan. 
    • Moderate performers: Kerala, Tamil Nadu, Karnataka. 
    • Underperformers: Uttar Pradesh, Bihar, Jharkhand.

What is the Significance of the Rooftop Solar Programme?

• Decentralised Energy Production: It reduces dependency on centralized power grids and enhances energy security and resilience by installing rooftop solar panels in targeted households.

• Economic Advantages: It lowers electricity bills for consumers, creates jobs in the solar industry, and reduces the need for expensive grid infrastructure upgrades.

• Energy Independence: It empowers consumers to become 'prosumers' (producers and consumers) and reduces reliance on fossil fuels and energy imports.
• Rural Electrification and Energy Diversification: It provides power to remote areas not connected to the main grid, improves the quality of life in underserved communities, and contributes to a more diverse and stable energy mix.
• Sustainable Development: It aligns with UN Sustainable Development Goals (SDG 7) and supports India's commitment to renewable energy and climate action.

What is India’s Current Solar Capacity?

• India's Rooftop Solar Capacity: 
  • India's total installed rooftop solar capacity is reported to be approximately 11.87 GW, with Gujarat leading the table followed by Maharashtra, as of March 2024.
    • The overall RTS potential of India is approximately 796 GW.
  • According to a Council on Energy, Environment and Water (CEEW) report, only 20% of rooftop solar installations are currently in residential sectors, with the majority concentrated in commercial and industrial sectors. 
  • The CEEW report projects that India's 250 million households have the potential to collectively install up to 637 GW of rooftop solar capacity, which could potentially fulfil one-third of the country's residential electricity demand. 
• Total Installed Capacity: 
  • Regarding total solar capacity, the Ministry of New and Renewable Energy states that India had achieved approximately 73.31 GW by December 2023, with Rajasthan leading at 18.7 GW and Gujarat following at 10.5 GW.

What is PM Surya Ghar Muft Bijli Yojana?

• About: 

  • The PM Surya Ghar Muft Bijli Yojana is a scheme aimed at providing RTS systems in 1 crore households.

  • Under this initiative, participating households can receive 300 units of electricity free every month. 

  • The scheme targets residential consumers with systems up to 3 kW capacity, covering a majority of households in India.

• Registration and Installation: 
  • To initiate the installation, interested residents must register on the national rooftop solar portal and select a vendor from the provided list.
  • Eligibility requires a valid electricity connection and no prior subsidy availed for solar panels.
• Financial Setup: 
  • The scheme is financed with a central allocation of Rs 75,021 crore, primarily distributed as direct subsidies to consumers.
  •  It also includes provisions for payment security in renewable energy service company models and supports innovative projects.
• Key Benefits: 
  • It includes free electricity, reduced electricity bills, payback periods ranging from three to seven years, lower costs for the government, increased adoption of renewable energy, and decreased carbon emissions.

What are the Different Challenges and Way Forward Related to RTS?