Why Does One State Have 64 Percent Of India’s Rooftop Solar Panels?

With its highly effective solar policies, the state of Gujarat is an unprecedented leader in residential solar rooftop systems in India. However, Gujarat’s success is only one side of the coin. What makes other Indian states fall behind?

Gujarat is regarded as one of the rapidly developing states in the country. Of late, the state has slowly and steadily emerged as one with the most number of solar rooftop installations in the country. The state’s rise in promoting solar rooftop installations is a testament to the government and state policies in Gujarat. The state of Gujarat alone houses two-third of India’s solar rooftop installations. This makes it the leader of residential solar rooftop systems in India.

Highlights! What makes Gujarat a leader in residential solar rooftop systems in India?

Stringent banking norms are making other Indian states fall behind in adopting solar rooftop systems.
Gujarat alone houses India’s two-third of residential solar rooftop installations.
Through its Surya Gujarat Yojana, the state government aims to cover more customers by 2022.

Gujarat’s impetus towards solar rooftop installations

Gujarat’s aim of accomplishing its renewable energy goals are on the right path. As of 2^nd March, 2020, the state has successfully installed an enormous 50,915 subsidized solar rooftop plants in the residential segment. According to the latest data portrayed by India’s renewable energy minister Raj Kumar Singh, this is the highest number in the country.

Of the total 79,950 solar rooftop systems installed in the country, Gujarat’s share is a massive 64% i.e. almost two-third of the total domestic installations in the country. With 5,531 installations, Maharashtra is the second best to Gujarat. The massive difference in the numbers speaks for the huge impetus for residential rooftop panels in Gujarat.

The total rooftop solar installation in country has reached 1,700.54 MW. Among all states, Gujarat tops the list with 261.97 MW of solar rooftop installations. pic.twitter.com/WoxehbfWnX
— R. K. Singh (@RajKSinghIndia) August 1, 2019

“The total capacity of the 50,915 systems installed on domestic rooftops in the state is 177.67 MW, whereas the total systems installed across the country have a combined capacity of 322 MW.” – RK Singh on solar rooftop installations in Gujarat

RK Singh further added that according to estimates about 483 million units of electricity is generated per year through these grid connected solar rooftop systems.

Gujarat’s effective solar policies

If the words of experts are taken into account, the main reason for Gujarat clocking such a colossal number of solar system installations is the solar policy of the state.

“This is because of Gujarat’s specific policy which has incentivized rooftop installations. We don’t see it in many other states because of a passive resistance from a majority of state DISCOMs towards rooftop systems,” said Girish Kumar Kadam, sector head and vice-president at ICRA, when asked about Gujarat’s success in rooftop installations.

Gujarat Tops Solar Rooftop Installation In India — The effective solar policies of the state government have made Gujarat a leader in solar rooftop installations in the country. | Newsline | DKODING

Previous year, the state government of Gujarat had launched a new scheme for solar rooftop worth INR 912 crores. According to the scheme, beneficiaries received a subsidy of 40% for a system of up to 3 KW and a subsidy of 20% for a system of 3 KW to 10 KW.

The scheme is to promote solar rooftop installations and is only for residential customers. The extra electricity generated can be sold to state DISCOMs at the rate of INR 2.25 per unit. The main idea is to help customers make money through their solar rooftop systems.

Gujarat Is The Leader Of India's Solar Rooftop Systems — Gujarat government provides subsidies for residential solar rooftop installations. | Newsline | DKODING | Image Credits: TERI

Why are other states lagging?

The net-metering guidelines for solar rooftop installations vary across the states in terms of cap on solar installations. This is one fact that accounts for other state falling behind in adopting the solar rooftop systems.

“There are restrictions in terms of demand that can be met through rooftops. On top of that, the banking norms are becoming more and more stringent across the states. The banking period is also getting curtailed across the states.” – Girish Kumar Kadam on lack of solar rooftop installations in other states

Video Credits: World Bank

Through its Surya Gujarat Yojana, the state government of Gujarat plans to cover about 8 lakh domestic electricity consumers by 2022. The right policies and their implementations have made Gujarat lead India’s residential solar rooftop race.