Rooftop Solar PV Projects In India Explained: Types, Benefits, And Policy Support

Rooftop solar PV projects in India have gained significant momentum in recent years, driven by government policies, decreasing costs of solar technology, and increasing awareness about renewable energy. These projects involve the installation of solar panels on the roofs of residential, commercial, and industrial buildings to generate electricity from sunlight.

A rooftop solar system consists of photovoltaic panels installed on the roof of a building to convert sunlight into electricity. This renewable energy solution reduces reliance on grid power, lowers electricity bills, and contributes to environmental sustainability by decreasing carbon emissions.

In India, rooftop solar projects are typically executed under different types of contracts, mainly categorized into two models: the Capital Expenditure (CAPEX) model and the Operational Expenditure (OPEX) model.

In the CAPEX model, the property owner purchases and owns the solar system by paying the entire cost upfront or through financing options. The owner is responsible for the operation and maintenance of the system. This model provides full control over the energy produced and the benefits derived from it. It is suitable for entities with the financial capacity to make the initial investment and a long-term vision for energy savings.

The OPEX model, also known as the Renewable Energy Service Company (RESCO) model, involves a third-party investor who installs, owns, and maintains the rooftop solar system. The property owner only pays for the electricity generated by the system, often at a rate lower than the conventional grid electricity tariff. This model reduces the upfront financial burden on the property owner and shifts the performance and maintenance responsibilities to the third-party investor. It is ideal for entities looking to adopt solar energy without significant initial investment.

Rooftop solar projects offer several benefits. Firstly, they help reduce electricity bills by generating power that can be consumed on-site, thus lowering reliance on expensive grid electricity. Excess power can be fed back to the grid, earning credits or payments under net metering policies. Secondly, rooftop solar installations reduce carbon footprints by producing clean, renewable energy, contributing to environmental sustainability. They also enhance energy security by diversifying the energy mix and reducing dependence on fossil fuels.

In terms of policy support, the Indian government has introduced several initiatives to promote rooftop solar adoption. The Ministry of New and Renewable Energy (MNRE) offers subsidies for residential rooftop solar systems, reducing the initial cost for consumers. The government also provides financial incentives, tax benefits, and low-interest loans to encourage investment in solar projects.

Net metering policies, implemented by various state electricity regulatory commissions, allow consumers to feed excess solar power into the grid and receive compensation, further enhancing the economic viability of rooftop solar systems. Additionally, several states offer attractive tariffs for solar power purchase agreements, making it financially appealing for third-party investors to develop and operate rooftop solar projects.

Moreover, programs like the Smart Cities Mission and the development of solar cities focus on integrating rooftop solar systems into urban planning, providing a significant boost to their adoption. The government’s ambitious target of achieving rooftop solar capacity has accelerated policy support and created a conducive environment for growth.
Overall, rooftop solar projects in India represent a significant opportunity to harness renewable energy, reduce electricity costs, and contribute to a sustainable future. The combination of financial benefits, environmental advantages, and robust policy support makes them an attractive option for consumers and investors alike.