The In­ter­est­ing Case of KERC – Earn from Your So­lar In­vest­ment

Consumer Voice - - Produce Solar Power At Home -

When one looks at the eco­nomics of in­stalling a RTPV sys­tem based on the so­lar tar­iff ap-provals of Kar­nataka En­ergy Reg­u­la­tory Com­mis­sion (KERC), the cur­rent slow pen­e­tra­tion of so­lar en­ergy in the res­i­den­tial mar­ket be­comes mys­te­ri­ous.

KERC has ap­proved RTPV so­lar en­ergy gen­er­a­tion tar­iffs of Rs 7.08/kWh for those with­out sub­sidy, and Rs. 6.03 with sub­sidy. Un­doubt­edly these are at­trac­tive tar­iffs. KERC has ap­proved tar­iffs to be charged to res­i­den­tial con­sumers at the rate of Rs 4.70/kWh for power con­sump­tion of 31 to 100 units, Rs. 625/kWh for 101 to 200 units, and Rs 7.30 above 200 units. In ad­di­tion, KERC has ap­proved gross me­ter­ing in the case of res­i­den­tial con­sumers.

KERC has been gen­er­ous in com­put­ing the cost of power gen­er­a­tion from RTPV. I have com­puted the cost to gen­er­ate power us­ing dis­counted rate of re­turn to give 12 per cent on the in­vest­ment of RTPV. The re­sult­ing eco­nomics are at­trac­tive. In the ab­sence of 30 per cent sub­sidy, cost to gen­er­ate is Rs 6.25/kWh, and if sub­sidy is se­cured then the cost is only Rs 4.50/ kWh. The rea­son these es­ti­mates are higher than the prices quoted above is scale of econ­omy.

Hence, the KERC move shows that house own­ers who in­stall RTPV will be able to earn money by sell­ing power to their DISCOMs. They sell power at higher price and buy power at lower price. They are also as­sured of get­ting power 24 hours a day. What is true of Kar­nataka is po­ten­tially ap­pli­ca­ble to other states as well. Even in states where gross me­ter­ing is not al­lowed, own­ers stand to earn a good re­turn on their so­lar in­vest­ment. Com­po­nents that are re­quired for rooftop so­lar in­stal­la­tions are pho­to­voltaic pan­els (which con­vert so­lar sun­shine into di­rect elec­tric­ity), bat­ter­ies to store elec­tric­ity when power is not re-quired and the sun is shining, in­vert­ers to con­vert DC into al-ter­nat­ing elec­tric­ity (AC), ca­bles and other mis­cel­la­neous items like junc­tion boxes, earth­ing, light­ing ar­restors, con­duits, etc. Pan­els ac­count for about 50 per cent of the to­tal cost. A shade-free area of at least 200 square feet is re­quired for so­lar in­stal­la­tion on the roof of a house; per­mis­sion from the DISCOM is re­quired to in­stall the same. Also, a long-term con­tract has to be signed with the DISCOM to avail sub­sidy. It is ad­vis­able to get the RTPV in­stalled by a con­trac­tor au­tho­rised by the DISCOM.

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.