Tata Power Renewable Energy plans to grow its rooftop solar business four-fold in the next three to four years. Its current portfolio in the segment is 250 MW. The company also plans awareness campaigns in 100 cities by end of FY19.
Recognising that finance is one of the major barriers to the growth of rooftop solar the company is working with financial companies and at the advocacy level to provide a holistic solution to the residential and commercial & industrial consumers. Tata Power Renewable Energy has come out with a scheme with Tata Cleantech Capital to offer the products under a bouquet of offerings to the residential sector. SolarDae had previously reported how the companies like Tata Power solar have started focussing on the residential consumers.
The initiative of the company is to make the residential sector aware of the net metering and savings benefits. In 2015, MNRE announced 40,000 MW target for rooftop solar installations by 2022. Residential buildings were eligible 30% subsidy.
Besides, the central government also urged the state governments to announce policies to enable net-metering. Net-metering is a billing mechanism that enables power consumers to be paid for injecting rooftop solar energy into the grid. But for the residential consumers, the upfront cost for buying solar equipment was too high.
On the other hand, the Commercial and Industrial (C&I) consumers have shown more enthusiasm towards adopting rooftop solar. Their large power bills justify the expense of solar power systems, even though they get no subsidy. The C&I consumers in India are subsidizing. That’s why they end up paying a huge expense on electricity.
SolarDae Take: Companies are aligning themselves to the likely changes in the business scenario in rooftop solar
Rooftop solar in India desperately needs innovative financial solutions and Tata Power is doing that exactly. The motive of the company could also be to position itself in the market in the new fiscal. The Power Ministry is proposing to bring changes in the tariff policy which will also have a direct bearing on the rooftop solar market.
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