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Nagaland targets 50 MW rooftop solar plant

India’s installed rooftop solar capacity is nearly 2 GW and by 2022 it aims to reach 40 GW. Each state has been allocated its share of the target. For Nagaland, the target is 50 MW. World Bank, State Bank of India and Ministry of New & Renewable Energy (MNRE) have come together to form an initiative called “Sustainable Partners for Rooftop Solar Acceleration in Bharat (SUPRABHA). Under the initiative, they held a workshop for the understanding of solar power plants.

Analysis of rooftop solar market in Nagaland

Unlike most states energy charges in Nagaland are telescopic for all consumers. Generally, energy charges are flat for commercial and industrial consumers. In Nagaland the charges increase from one energy slab to another as shown here:

Nagaland targets 50 MW rooftop solar plant
Source: Tariff Order 2018-19; SolarDae Research

Nagaland has 89% domestic/residential electricity consumers, 8% commercial and 2% industrial consumers. In order to position themselves among Commercial and Industrial (C&I) market the developers will have to compete with the tariffs of the grid. It is also a special category state which can claim a 70% subsidy on rooftop solar for residential consumers. But the developers generally prefer C&I consumers due to the poor track record of government’s promptness in disbursing the subsidy amount. The Government of India is also considering amendments in tariff policy which may also affect the business environment of the rooftop solar market. While uncertainty continues to loom whether the central government will continue with its subsidy support from the next fiscal many solar energy companies are gearing up to tap the residential market in India. The state of Nagaland may offer a great market to these companies.

But regulatory provisions of the rooftop solar restricts the capacity

On the downside, the net-meter regulation of Nagaland restricts rooftop solar size up to 80% of their sanctioned load. The maximum capacity cannot exceed 1 MW. This is not good as small capacities don’t give the advantage of scale to the developers. The provisions are similar to Rajasthan. SolarDae has advocated policies for unlocking demand of rooftop solar in India.

Featured Image Source: Flickr

Post Author: Ankur Kumar Jha

Founder SolarDae || MBA Power Management || B.E (Mechanical)

Ankur analyses mainstream media coverage of renewable energy in general and solar in particular; he tracks the ongoing development of regulations and policies and incorporates them in his opinion. He can be reached at +91-8860726731 for any assistance in rooftop solar and utility-scale projects.

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