Achieving the 2022 target of 40 GW of rooftop solar capacity will be a challenge and will require considerable innovation, according to Manu Srivastava, Principal Secretary, New and Renewable Energy Department, Madhya Pradesh.
The slow pace of rooftop solar capacity addition in the country could largely be attributed to distribution companies in power surplus States viewing rooftop solar as competition, he added.
On Wednesday, Madhya Pradesh will invite bids for 33 MW of solar rooftop capacity, over and above the State’s current capacity of 20 MW. “We identified 567 buildings on which solar rooftop projects are to be developed and did a detailed analysis of each building,” Mr. Srivastava said in an interview. “There is a data room for each building. In them, there is a Google coordinate of the building, and on Google Maps, we have superimposed the proposed layout of the panels, looking at the rooftop available, the shadows that fall on that rooftop, etc.”
‘Clarity spurs low tariffs’
“So, the developer will know how many panels are needed, how many inverters, the electricity bills of past six months,” he added. “They have this information at the time of bidding.”
This would help remove considerable uncertainty on capital cost estimates for developers, which could lead to lower tariffs as developers otherwise build the uncertainty into the bid amounts, Mr. Srivastava said.
“The power deficit States typically have policies that encourage rooftop solar,” Mr. Srivastava said. “But if you look at states that are power surplus, there is resistance to rooftop solar from the discoms. This is because they feel that their customers are being eaten into. There is a conflict of interest there.”
“Rooftop projects require more effort, and it’s to be seen how we move ahead,” he added. “But definitely we will need innovations in the rooftop space if we want to move ahead.”
With regard to the imposition of safeguard duties of 25% on solar cell imports from China and Malaysia, Mr. Srivastava said that the power purchase agreements for the state have incorporated a provision for a change in taxes, allowing developers to pass the increase on to customers. However, with the duty having been imposed before the bids are places, developers can now incorporate the higher costs in their bids itself, he said.
The PPAs have a provision where a 10% increase in capital costs would result in a 8% increase in tariffs.
