Government’s Efforts to Facilitate Rooftop Solar Growth through Norm Simplification

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The regulations could potentially be adjusted to permit installations with a capacity of less than 10 KW.

The slow growth in rooftop solar projects for homes is prompting the power ministry to look at new norms to boost adoption and speed up installation. The need for technical feasibility and prior permissions may be removed, said a person aware of the developments. “There is no need for technical feasibility and prior permission for setting up rooftop solar at homes. That requirement may not remain mandatory. Further, after the installation of panels, people from discoms are required to visit and set net metering. There should be a timeline for that. Right now there is no timeline,” the person said. In case the timeline is missed, a penalty may be imposed on the distribution company.

The relaxations may be allowed for installations with less than 10 KW capacity, the person added. Currently permissions are required from the power supplier or the discom as well as municipal authorities in some cases. The power ministry has proposed the changes through a consultation paper but no decision has been taken so far, said another person. Net metering is needed for rooftop solar installations connected to the grid, which allows customers who generate their own solar power to sell surplus electricity back to the grid.

The proposals come at a time when rooftop solar capacity has fallen short of ambitious targets. Against a target of 40 GW to be achieved by the end of 2022, only 5.87 GW of rooftop solar projects has been installed, less than 15% of the target, Parliament’s standing committee on energy said in May. Currently grid-connected solar rooftop capacity stands at 11.08 GW out of the total solar capacity of 72.31 GW, according to the ministry of new and renewable energy.

Initiatives to Boost Solar Power in India

Under the government’s energy transition plans, solar power is expected to account for 292 GW out of a total renewable capacity of 500 GW by 2030. The second person said the national portal for rooftop solar may be revamped to provide more relevant information and datasets along with making it user-friendly.

Financial Assistance for Residential Solar Rooftop Projects

Queries mailed to the ministries of power and new and renewable energy remained unanswered at press time. The Centre also provides financial assistance for residential solar rooftop projects. In another effort to make it more attractive for homeowners, the union ministry for new & renewable energy on Friday revised the Central Financial Assistance (CFA) for residential solar rooftop projects.

Enhanced Subsidy Scheme and Impact

New beneficiaries can get additional financial assistance of ₹10,000 to ₹22,000 under the subsidy scheme through the national solar rooftop portal. At 15%, the composition of rooftop solar power in the total installed solar capacity of India falls well below the global average of 40-50%. Arindam Ghosh, Partner, Power Advisory, Nangia Andersen LLP, stated, “This increase in CFA would make domestic customers think to install solar panels, which would reduce their electricity bill.”

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