This is the best example which shows how government Policies, Ambitions and Social Obligations, fails even before Take OFF.
Solar Roof top Policy of Karnataka is one of the best, widely appreciated and Given good stimulus for the consumers to Generate Solar Power on their roof top, use it and export it to ESCOMS at Rs.9.56/unit. The set target from the central Govt. was tough and initially state govt. failed to meet the target. This is basically due to lack of publicity, refusal to fund the project by banks and also huge initial capital investment involved.
Initially the order was given to encourage the Solar roof top with set target of 400 M Watts. Governament relaxed the norms and started giving permission to buildings under constructions vide EN 70 dated 10-12-2015. This really encourages all the customers and the boom for PPA started and exceeded the required target of 400 M Watts and reached 1567 M Watts as per the documents. ESCOMs entered into PPA with different customers accross the state. In order limit this boom Govt. withdrew the above order and brought in new rules. As per new rules, the capacity of grid connection should not exceed the sanctioned capacity of the installation. The roof top should be 10 feet and above and construction has to be completed before sanction.
This order came as a jolt for many and will going to upset the projection of roof top solar power generation in future in the state.
90 % of the PPA signed parties in 1567 M Watts are waiting for external funding and now roaming around with an intention to sell their PPA to venture capitalists. Under such situation it is very difficult to forecast how much will be implemented in nest ONE year, which is the time stipulated by the ESCOMS as per PPA entered.Perhaps in the next ONE year not even 150 M Watts will be installed. Under such circumstances the state Govt. will fall short of original projected target of 400 M Watts generation from roof top itself. coupled with that short fall, the new guidelines which came into force on 23-3-2015 will further discourage the interested parties to venture into installation of Solar roof top systems.
Generally people are not interested in installing solar roof top just to meet their in house energy demand. They are thinking it as a viable income source. If the place is available on the roof top and if they are capable of funding through their source or external funder, customers prefer to install higher capacity and export the same to ECSOm to earn money. Such projects are very lucrative and will have constant long term income source. With the sudden change of policy the customers are left in dark and the system integrators who were doing all type of statistical and pay back analysis circus are left in total confusion on what to do.
Coupled with this now KERC is all set to revise the purchase price for roof tops from present Rs. 9.56 to down wards with reference to the recent 50 M Watts reverse bidding price which is about Rs.4.78. This is the real jolt for small and medium sized roof top installers and planned project owners.
Because in smaller projects as such Rs. 9.56 is a very critical cost to work out capital investments and returns. If this is revised further down definitely there is no hope in progressing the Roof top projects any further, by keeping all these things in view the future of solar roof top projects is looking dim.