Go Solar And Cut Down Your Electricity Bills By 95%, Says Report
Installing a rooftop solar plant can be a boon and help save a large sum on your electricity bills. According to a study released by the Council on Energy, Environment and Water (CEEW), residents who install rooftop solar system at their homes can save up to 95 per cent on their electricity bills if they go solar completely. However, those who source electricity from a community rooftop solar photovoltaic plant, through a subscription plan, could also save up to 35 per cent of their electricity bills.
These numbers were unveiled keeping in mind that these systems have a life of 25 years.
While the report unveils that the cost for solar systems has dropped by 27 per cent in the past three years and the government has introduced a 30-per cent subsidy, only 400 megawatt (mw) of solar rooftop systems have been installed across the country. Of this, close to 60 mw of installed capacity is in Delhi.
So, what are the challenges in installing solar rooftop systems?
The consumers still face certain key challenges which include high capital cost, lack of access to finance, lack of consumer awareness, issues with roof ownership and access, and a roof lock-in period of 25 years. This lack of adoption among consumers has also discouraged solar developers to focus on residential systems.
The report suggests that participation from discoms and innovative business models for consumers could help spur the growth of residential rooftop solar systems.
How could solar rooftop model help?
Constant electricity cuts, proposed rise in electricity prices during peak hours and constant rising demand for electricity during peak hours together could be overcome using solar rooftop model.
In order to encourage the use of solar rooftop systems, the BSES Yamuna Power Limited (BYPL) and CEEW have introduced three utility-led models – community solar model, on-bill financing model, and a solar partner's model.
Community solar model: It is divided into two models, on-site and off-site. While in on-site model the group of consumers will jointly share the benefits of the system on the shared roof, in the off-site model, the benefits are shared on the system installed on available roof space nearby.
On-bill financing model: Under this model, residents can obtain the capital for the solar system as a loan from third-party lenders and later repay it through monthly electricity bill.
Solar partners model: Also termed as one for all, under this model discoms can aggregate rooftop owners, tender capacity and sign public-private agreements with developers who install and maintain the systems. Consumers can then subscribe for the solar electricity generated.