The number of organisations and individuals relying on the sunshine to minimise their monthly power bills is increasing by the day, but phase-II of Grid-Connected Rooftop Solar (RTS) programme approved by the Centre might take the smiles off their faces.
It has withdrawn the Central Financial Assistance (CFA) for categories such as institutional, educational, social, government, commercial and industrial among others.
The CFA for the residential sector has also been restructured with availability of 40% financial support from the Centre for rooftop systems up to 3 kw capacity and 20% for a project with a capacity beyond 3 kw and up to 10 kw. However, the only relieving factor is that the new policy comes into effect from April 1, giving a month’s time for those aspiring to buy a subsidised rooftop solar panel project.
Nearly 14 colleges in Krishna district have opted for rooftop solar projects to save on their power bills. They include V.R. Siddhartha Engineering College, P.V.P. Siddhartha Institute of Technology, NRI College, Usha Rama College, Siddhartha Medical College, Lakkireddy Balreddy Engineering College, Loyola College, Stella College, Happy Valley Institute and Viswa Bharathi.
Other options
“If a consumer is not capable of investing money, he has options of a bank loan or availing loan from supplier for installation of solar rooftop system. Suppliers are ready to extend financial support on 30:70 basis and the consumer can repay the 70% in 36 EMIs,” says K. Srinivasa Rao, Krishna district manager of New and Renewable Energy Development Corporation of Andhra Pradesh (NREDCAP).
“The EMI amount is almost equal to one’s power bill. Instead of payment to the APSPDCL, the consumer can repay the loan amount,” explains Mr. Rao.
“The RESCO (Renewable Energy Service Company) is a less capital intensive model that the consumer can opt for. Under this, the entire system is owned by the developer/supplier. The rooftop owners consume the electricity generated for which they must pay a pre-decided monthly tariff. It is a low-cost option for a consumer, says Mr. Rao.
Involvement of DISCOMs
The Cabinet Committee on Economic Affairs has approved the Phase II programme that envisages achieving cumulative capacity of 40,000 MW from rooftop solar projects by 2022. The programme will be implemented with Central financial support of ₹11.814 crore.
This phase lays focus on increased involvement of DISCOMs.
Performance-based incentives will be provided to them based on RTS capacity achieved in a financial year above the base capacity, i.e. cumulative capacity achieved at the end of the previous financial year.
