Due to continues decline in feed in tariff (FIT) as brought down solar power selling price from 18 Rs/unit to 6.5 Rs/unit in last three years and the FIT determination through competitive regime has made many investors to evaluate there decisions to invest in solar projects. On one side the competitive bidding has made large scale solar projects less profitable to the investors at the same time many new companies in solar are looking for innovative ways and leasing options to make solar a win-win proposition to consumer and invest through third party sale options . As the cost of grid electricity goes up the investment in roof top projects for commercial –institutional investors became attractive. Bottom line is that instead of buying costlier electricity from grid and generating backup electricity from DG set ,it is better to generate solar electricity at your roof top itself so that the electricity is much more cheaper than the cost of electricity from grid and DG.
There are various bottlenecks to displace captive electricity from solar and biggest bottleneck is the Net metering. Net metering is not allowed in most of the states due to which it is not possible for investors to feed there surplus electricity to grid and use it back as and when they are need of electricity. In fact the solar project installed under REC route cannot be connected on the consumer side of the meter ,so that it can displace some of the captive electricity demand . Under REC route you are suppose to feed all the electricity to the grid and can offset your electricity consumption through open access even if the solar PV system is installed at your roof top .
It is expected the government will come out with certain changes specially for commercial rooftops so that large scale deployment in solar rooftop can take place.
Dr Sanjay Vashishtha & Rishikesh Muthyal