The Indian rooftop solar sector has evolved significantly over the years, driven by progressive policies, technological advancements, and market dynamics. With ongoing support and innovation, rooftop solar is expected to play a pivotal role in India's transition towards a sustainable energy future.
Pradhan Mantri Suryodaya Yojana (PMSY), a new rooftop solar scheme introduced by the Indian government under the leadership of Prime Minister Narendra Modi. The Pradhan Mantri Suryodaya Yojana is aimed at promoting the adoption of rooftop solar power generation among residential consumers in the country. It likely provides subsidies or financial incentives to encourage the installation of rooftop solar panels and aims to increase the availability of clean and renewable energy sources at the household level. The scheme is part of the government's broader initiatives to promote renewable energy and achieve its targets for reducing carbon emissions and combating climate change.
Initially, the Indian government introduced various policies and incentives to promote renewable energy adoption, including rooftop solar. Solar PV technology was relatively expensive, and installations were primarily limited to off-grid applications or large-scale solar farms. The rooftop solar market was in its infancy, with limited awareness and adoption due to high upfront costs and regulatory challenges.
Launched in 2010, NSM aimed to promote solar power generation in India, including rooftop installations. Several states introduced their own rooftop solar policies with incentives such as subsidies, net metering, and streamlined approval processes. Over the years, policies were revised to address challenges and encourage rooftop solar adoption, including targets for capacity addition and financial incentives.
Technological advancements and economies of scale led to a significant reduction in the cost of solar PV modules, making rooftop installations more affordable. Solar PV efficiency improved, allowing for better performance even in low-light conditions, enhancing the viability of rooftop solar systems. Further, advancements in battery storage technology enabled increased self-consumption of solar energy and grid independence for rooftop installations.
The rooftop solar market witnessed rapid growth driven by falling costs, supportive policies, and increased awareness of environmental benefits. Therefore, the Rooftop solar found applications across residential, commercial, industrial, and institutional sectors, catering to varying energy needs and consumption patterns. The market saw the emergence of solar service providers offering end-to-end solutions, including financing, installation, and maintenance of rooftop solar systems.
Rooftop Solar Energy Policies Across Indian States
Andhra Pradesh:
Policy: Andhra Pradesh Solar Power Policy, 2018.
Key Provisions:
Promotion of solar rooftop systems on public buildings, domestic, commercial, and industrial establishments.
Availability of both gross and net metering.
All approvals/clearances to be provided within 14 days.
Capacity permitted up to 1000 KWp at a single location.
Arunachal Pradesh:
Policy: No policy available.
Assam:
Policy: Assam Solar Energy Policy, 2017.
Bihar:
Policy: Policy for Promotion of New and Renewable Energy Sources, 2017.
Key Provisions:
Capacity addition of 1000 MW of solar rooftop projects by 2022.
Mandates utilization of government and municipal office building roofs.
Provisions for gross metering, net metering, and third-party sale.
Chhattisgarh:
Policy: Chattisgarh Solar Energy Policy, 2017-2027.
Key Provisions:
Single window mechanism for statutory clearances.
Promotion of RESCO model.
Goa:
Policy: Goa State Solar Policy, 2017.
Key Provisions:
Promotion of Renewable Energy Service Company (RESCO) model.
Provision of state loan and subsidy for solar rooftop systems.
Gujarat:
Policy: Gujarat Renewable Energy Policy, 2023.
Key Provisions:
Solar projects under net metering or gross metering.
Applicable tariff calculation method specified.
No banking charges on solar power consumed by residential consumers.
Haryana:
Policy: Haryana Solar Power Policy, 2016.
Key Provisions:
Capacity addition target of 1600 MW RTS power plants by 2021-22.
Single window mechanism for statutory clearances.
No application/processing fees for captive use.
Himachal Pradesh:
Policy: Energy Policy, 2021.
Key Provisions:
Provision for net metering.
Surplus energy payment at 50% of the generic tariff.
Jharkhand:
Policy: Jharkhand State Solar Policy, 2022.
Key Provisions:
Capacity addition target of 250 MW in rooftop solar.
Mandate for residential plots to install SRT systems.
60%-80% state subsidy for residential consumers.
Karnataka:
Policy: Karnataka Renewable Energy Policy, 2022-2027.
Key Provisions:
Capacity addition target of 1000 MW of solar rooftop projects.
Provision for both Net metering and Gross metering.
Provision of peer to peer trading through blockchain technology.
Kerala:
Policy: Kerala Solar Energy Policy, 2013.
Key Provisions:
Solarization of government buildings.
Provision of net metering and incentives for domestic consumers.
Madhya Pradesh:
Policy: Madhya Pradesh Policy for Decentralized Renewable Energy Systems, 2016.
Key Provisions:
Exemption from electricity duty/cess.
Target of 495 MW of grid-connected SRT by 2022.
Provision for various business models under RESCO mode.
Maharashtra:
Policy: Unconventional Energy Generation Policy, 2020.
Key Provisions:
Capacity addition target of 2000 MW in SRT.
Grid connectivity considered as a “deemed” provision.
Manipur:
Policy: Manipur Grid Interactive Rooftop Solar Photovoltaic Power Policy, 2014.
Key Provisions:
Provision for net metering, gross metering, and third-party sale.
Capacity addition target of 50 MW by 2022.
Meghalaya:
Policy: No policy available.
Mizoram:
Policy: Solar Power Policy of Mizoram, 2017.
Key Provisions:
State government buildings mandated to install SRT systems.
Provision for net metering, gross metering, and third-party sale.
Nagaland:
Policy: No policy available.
Odisha:
Policy: Odisha Renewable Energy Policy, 2022.
Key Provisions:
Government buildings encouraged to set up RTS systems.
Provision for RESCO model and third-party sale.
Punjab:
Policy: New and Renewable Sources of Energy (NRSE) Policy, 2012.
Key Provisions:
Promotion of RTS systems in all sectors.
Cumulative SRT installation targets specified.
Rajasthan:
Policy: Rajasthan Renewable Energy Policy, 2023.
Key Provisions:
Promotion of Rooftop Solar Systems through net metering and gross metering.
Various provisions for solar rooftop installation in government buildings.
Sikkim:
Policy: Grid Connected Rooftop Solar Photovoltaic System Policy for Sikkim, 2019.
Key Provisions:
Promotion of grid-connected solar rooftop systems.
Mandate for rooftop system installation in government buildings and residential complexes.
Tamil Nadu:
Policy: Tamil Nadu Solar Energy Policy, 2019.
Key Provisions:
Capacity addition target of 3600 MW in solar rooftop by 2023.
Rooftop Solar systems can be installed in CAPEX or RESCO model.
Telangana:
Policy: The Telangana Solar Power Policy, 2015.
Key Provisions:
Promotion of RTS systems on public and private buildings.
Both net metering and gross metering applicable.
Tripura:
Policy: No policy available.
Uttar Pradesh:
Policy: Uttar Pradesh Solar Energy Policy, 2022.
Key Provisions:
Capacity addition target of 6000 MW in RTS.
Provision for net metering, gross metering, and net billing.
Uttarakhand:
Policy: Draft on Uttarakhand Solar Policy, 2022.
Key Provisions:
Capacity addition targets in residential, C&I, and institutional sectors.
Mandate for RTS systems in government departments and institutions.
West Bengal:
Policy: Policy on Co-generation and Generation of Electricity from Renewable Sources of Energy, 2012.
Key Provisions:
Byelaws amendment for solar energy infrastructure.
Mandate for RTS systems in commercial and government establishments.
Recent policy revisions focused on enhancing ease of doing business, increasing targets for rooftop solar capacity addition, and introducing innovative financing mechanisms. Integration of smart technologies, such as IoT, AI, and blockchain, into rooftop solar systems for enhanced monitoring, optimization, and grid interaction. Increasing adoption of rooftop solar by residential consumers, commercial establishments, and industries, driven by favorable policies, declining costs, and growing environmental consciousness.
The rooftop solar sector is poised for continued growth fueled by supportive policies, technological advancements, and increasing demand for clean energy; Focus on grid integration and regulatory reforms to facilitate seamless integration of rooftop solar into the grid and ensure stability and reliability; and Continued emphasis on innovative financing models, such as RESCO, leasing, and third-party ownership, to overcome financial barriers and accelerate adoption.
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