Need for a Roof Top Solar Energy Policy in India

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Solar Energy
An earlier note in this blog described how Solar Photo Voltaic systems are mankind’s energy hopes for the future. There is an even more desperate need for it in India where insufficient electricity production is holding back the development of the country. Just as a human cannot perform without sufficient food, a modern economy cannot progress without sufficient electricity, nor can the quality of life of humans improve without it.

While India is making progress in policies for solar parks, a more advantageous option of roof-top solar energy is being missed. Individual roof-top systems benefit the consumer directly, save on precious land resources and eliminate transmission losses. However before it becomes feasible a roof-top policy is required. The three things required for this are

  1. A policy to permit individual home-owners to link their solar PV systems to the grid so that they can draw from the grid or feed into it while getting credit for the amount they feed in. Individual home owners thus become national electricity producers and the electricity shortages in the country vanish

  1. A financing policy  (when repayments for a loan for the system become less than electricity bill savings it becomes a win-win situation for all) – an innovative example of this from America is here:
 http://thinkprogress.org/climate/2014/10/08/3577529/rooftop-solar-more-affordable/
In India a state run domestic solar finance corporation could be considered to advance loans for the purpose with EMI payable added to the electricity bill and routed through the electricity distribution company. If the savings from solar electricity are more than repayments the domestic consumer would be a net gainer.


  1. A Taxation policy that makes companies that produce solar panels and associated equipment for storage, inversion and up linking tax free. More on an innovative policy in this direction was mentioned in the earlier note. It may be mentioned that tax relief do not harm the economy but a subsidy can by becoming a burden and should be avoided in this area. Although the country would miss the tax benefit it will gain immensely by indirect benefits of increased manufacturing in other areas and reduced energy import bills. A further tax benefit to individuals from their personal income tax for installing solar systems can give a further boost plus a manufacturing policy that invites the most reputed solar panel industry to set base in India and make it attractive to them to do so.

A side benefit of roof top panels is that they keep a home cooler by insulating the roof from direct rays of the sun thus reducing need for electricity while generating some, another is the job creation that this industry leads to. It is hoped that India will progress in this direction rapidly. What is most hopeful is that the new PM of India, Shri Narendra Modi mentioned in one of his addresses in USA that India is working towards such a policy.  Once in place the policy will benefit citizens and the economy immensely while helping the environment, not just of the country but of the world. It is hoped that this note can contribute some additional useful ideas towards this policy.

UPDATE: Nine out of ten Australians (with a sunny disposition similar to India unlike Europe where wind rather than the sun is more prevalent) are considering switching to Solar electricity and Indians too will because India is just as sunny, once this roof top policy is in place. See this report:
http://www.treehugger.com/renewable-energy/9-out-10-australian-households-are-considering-switching-solar-power.html

A recent report describes how renewable energy creates ten time more jobs than fossil fuels
http://tcktcktck.org/2014/11/renewable-energy-creates-ten-times-jobs-fossil-fuels/65232

      
Image Source before modification: http://en.wikipedia.org/wiki/File:Roof_top_solar_1.jpg

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