How well is India harnessing the potential of rooftop solar? | Explained

Rooftop solar (RTS) has the potential to revolutionize India’s energy landscape by offering a sustainable, decentralized and affordable solution that will meet the country’s growing electricity demand and ensure self-sufficiency for consumers. The country’s installed RTS capacity increased by 2.99 GW in 2023-2024, the highest growth recorded in a year. According to the Ministry of New and Renewable Energy, India’s total installed RTS capacity was 11.87 GW as of March 31 this year. To meet growing energy demand, India needs to redouble its efforts to expand its RTS capacity.

What is the RTS program?

In January 2010, the Government of India launched the Jawaharlal Nehru National Solar Mission. It was the first major initiative to promote the development of solar energy. The main goal was to generate 20 GW of solar energy (including RTS) in three phases: 2010-2013, 2013-2017 and 2017-2022.

In 2015, the government revised this target to 100 GW by 2022, including an RTS component of 40 GW, along with specific annual targets for each state and Union Territory. As of December 2022, India had achieved an installed RTS capacity of approximately 7.5 GW. It extended the deadline to achieve the 40 GW target until 2026.

Over the years, improvement in the number of RTS installations has been due to favorable initiatives (e.g. Sustainable Partnership for RTS Acceleration in Bharat, SUPRABHA and Sustainable Rooftop Deployment for Solar Energy Transfiguration in India, SRISTI, programs), financial incentives, technological advancements, awareness campaigns and training programs.

Nevertheless, we have a long road ahead of us. India’s total RTS potential is approximately 796 GW. The full potential of several countries’ RTSs has yet to be fully exploited. To meet India’s ambitious target of installing 500 GW of renewable capacity (with a share of solar of 280 GW) by 2030, as well as its larger net zero emissions targets by 2070, RTS alone needs to contribute around 100 GW by 2030 r.

How is the States doing?

Based on RTS performance calculated as of March 31, 2024, Gujarat, Maharashtra and Rajasthan have made good progress while others are lagging behind. The installed RTS capacity of 3,456 MW in Gujarat is the result of the government’s proactive approach and quick approval process, large number of RTS installers and high consumer awareness. Modhera, India’s first solar-powered village, is located in Gujarat and has 1,300 RTS systems of 1 kW each.

Similarly, Maharashtra, with an RTS capacity of 2,072 MW, is one of the best-performing states due to its robust solar policy and favorable regulatory environment.

Being the largest state in terms of area and with high solar radiation, Rajasthan boasts of the highest RTS potential in the country with a capacity of 1,154 MW. State efforts to streamline the approval process, provide financial incentives, and promote RTS through public-private partnerships have spurred this growth.

Kerala, Tamil Nadu and Karnataka, with an installed capacity of 675, 599 and 594 MW respectively, are also performing quite well.

However, Uttar Pradesh, Bihar and Jharkhand, among others, are yet to realize their full potential of RTS. Challenges in this regard include bureaucratic obstacles, inadequate infrastructure and lack of public awareness.

Parts of Muft Bijli Yojana.

‘Pradhan Mantri Surya Ghar: Muft Bijli Yojana’ is a flagship initiative to equip 1 crore households with RTS systems and help them get up to 300 units of free electricity every month. An average system size of 2 kW for targeted households will result in a total RTS capacity increase of 20 GW.

The financial outlay of the scheme is Rs 75,021 crore which includes central financial assistance to consumers (Rs 65,700 crore), incentives to distribution companies (Rs 4,950 crore), incentives to local bodies and model solar villages in each district, innovation projects, payment mechanisms security, capacity building, awareness and outreach.

To address the shortage of trained professionals in the solar industry, the government has allocated Rs 657 crore for capacity building under a program to create a skilled workforce capable of installing, operating and maintaining RTS systems. The program also encourages the use of advanced solar technologies, energy storage solutions and smart grid infrastructure to increase the efficiency, reliability and resilience of RTS installations.

Finally, the program allocates Rs 657 crore for awareness and outreach. By targeting households in rural and urban areas, the initiative prioritizes regions with limited access to electricity, high solar potential and at-risk communities to ensure equitable distribution of benefits.

The Government of India aims to streamline obtaining approvals, permits and regulatory approvals for RTS installations, reducing administrative hurdles and promoting ease of doing business.

How to ensure the development of RTS?

Creating awareness is key to consumer engagement. Local awareness campaigns by distribution companies and local authorities, as well as door-to-door RTS promotional campaigns, must cover the entire country. These initiatives should be strategically planned for long-term implementation and with clear objectives for each ward, sub-division, taluk, city and district.

Second, RTS must be economically viable for households. While government subsidies help reduce overall costs for households, many low-cost financing options are needed. Recently, the number of banks and non-bank financial companies granting RTS loans has increased. Accessing cheap RTS loans should be as easy as getting a bike or car loan. With a wide range of loans available on the market, more consumers will be willing to make the leap into solar energy.

Third, promoting research and development in solar technology, energy storage solutions and smart grid infrastructure can reduce costs, improve performance and increase the reliability of RTS systems. For example, technology solutions can help improve the implementation of RTS using drone and/or satellite imagery to analyze shadow-free areas on roofs; building patterns, height and density; and trends in energy consumption. Such solutions can provide stakeholders with accurate feasibility assessments and optimal designs for RTS systems and also help identify suitable rooftops to achieve the 1 crore target.

Fourth, investment in training programs, vocational courses and skills development initiatives will help build a skilled workforce. Under the ‘Suryamitra’ (photovoltaic technician) training program launched in 2015, over 51,000 technicians have been trained by December 2022. The implementation of such programs should be accelerated to support the RTS infrastructure.

Fifth, as the implementation of the Muft Bijli Yojana gathers pace, RTS policies, including net metering regulations, network integration standards and building codes, need to be reviewed and updated. This will help address emerging challenges and facilitate smooth implementation of the program. In particular, virtual and group metering options should be accelerated for consumers who do not have sufficient roof space for RTS installations.

With the right push, India can unlock the full potential of RTS and accelerate its transition towards a clean energy future.

Shantanu Roy works on the Renewable Energy and Energy Efficiency team at the Center for Study of Science, Technology and Policy (CSTEP), a research think tank.