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REconnect Summit, Nagpur: Charting Path to Solar Energy Revolution in C&I and Residential

At the 2nd edition of REconnect Summit in Nagpur, panellists discussed the challenges surrounding land procurement for solar projects, the regulatory hurdles, and suggested measures to accelerate the growth of solar energy in the residential and the commercial and the industrial (C&I) segment in India.

December 04, 2024. By Mrinmoy Dey

Solar energy has emerged as a major contributor in India’s transition to renewable energy and holds the key for achieving the 500 GW by 2030 target. The thrust, therefore, needs to come from the residential and commercial and industrial (C&I) segment.

To discuss the various challenges facing these two segments and come up with possible solutions, the second edition of REconnect Summit, organised by Energetica India magazine in Nagpur, witnessed the participation of the leading business leaders and top executives from the industry.

The first panel discussion was on ‘Upscaling C&I and Residential Solar in Maharashtra’. The panellists highlighted the challenges of procuring land for solar projects and the bottlenecks around regulatory frameworks.

Saurabh Agarwal, DGM, Business Development, Amplus Solar stated, “We bring in the capital and technical expertise and expect government to bring in the regulatory clarity related to land acquisition.”

He further proposed a policy framework wherein the land available can be aggregated facilitating solar power developers to take those up for setting solar plants.

Overall, the solar landscape appears promising, with the cost of solar power steadily decreasing over time. “The current environment is ideal for transitioning to renewable energy procurement through the group captive model, which provides clear benefits such as waivers and reduced cross-subsidies on additional surcharges,” added Agarwal.

Sathish Suri, Managing Director, GreenPath Energy and Sustainability Services, Hyderabad, who was also the moderator of the session stated, “A common concern for off-takers, however, is the long-term feasibility of associated charges. In group captive projects, factors such as transmission and banking charges, along with policy stability, play a critical role in ensuring economic viability.”

Banking is a beneficial policy, and recent amendments in Maharashtra have made it even more favourable. These changes include a revision of banking charges and an extension of the banking period, providing greater flexibility for stakeholders. To accelerate adoption, it is essential that policy stability demonstrates tangible benefits, such as long-term electricity cost savings over a period of 20-25 years.

Satyam Khamar, Head of Business Development & Planning, WAA Cables Pvt. Ltd. remarked, “Policies in Maharashtra are favourable for system integrators, with the net metering policy standing out as particularly attractive for both rooftop residential and commercial and industrial (C&I) segments. Additionally, the growing adoption of AI in the solar sector is proving transformative, offering real-time data insights that aid in managing downtime and improving the accuracy of demand and supply forecasting.”

Amol Mane, Assistant General Manager, Roofsol Energy Pvt. Ltd. highlighted the concern of availability of rooftop space higher cost of land in Maharashtra compared to other states proving to be a major hindrance for wide scale solar adoption. “In that light, recently, the government allowed customers with more than 100 kW requirement to procure power through the open access mode, which I believe is a great move. In the residential segment, the introduction of virtual net metering is expected to push the uptake.”

Ankur Mahendru, Technical & Marketing Director, Usha Shriram Solar said, “The step before achieving energy independence is an energy revolution, and for that, a strong resolution is essential. India has set an ambitious target of 500 GW of renewable energy capacity by 2030, and significant progress is already visible through various schemes like PM Surya Ghar. People are enthusiastically embracing a solar revolution across both the residential and commercial and industrial (C&I) segments. However, robust government support remains critical to sustaining and accelerating this solar boom.”

Saket Suri, Director, All India Renewable Energy Association highlighted that there is a notable gap in government funding for the C&I segment and it needs to be addressed to drive its growth effectively. Here, the public-private-partnership (PPP) model can be beneficial. Another area where the PPP model can be really successful is in the implementation of the agricultural feeder scheme.

Amit Arokar, Managing Director, ECE India Energies shared, “In the C&I segment, the challenges vary from state to state. In Maharashtra, the government’s Package Scheme of Incentives (PSI) supports the manufacturing sector by offering subsidies on SGST payments, power, interest, stamp duty, and electricity duty exemptions to MSMEs.”

He further added, “However, the inclusion of electricity subsidies under the PSI often negates the financial benefits for industrial players transitioning to solar power. We, along with industry associations, have urged the authorities to delink electricity costs and subsidy from the next PSI scheme to encourage solar adoption. A revised policy addressing this concern is expected to be announced soon.”

Suri clarified that subsidy on electricity per se is not bad, but offsetting the subsidy against electricity bill created a disincentive for solar adoption. Instead it could be passed on to green energy procurement.

Further the panellists shared that India’s dependency on solar glass is gradually decreasing. A shift toward fully automated manufacturing plants is crucial for the industry's future.

The panellists also emphasised the potential for reusing solar panels from utility-scale projects where the old panels are being replaced with newer panels to increase efficiency.

They suggested that the government could introduce policies to incentivise this practice. Additionally, they advocated for the creation of a marketplace for reselling old panels, similar to the model used in the automobile sector, to enhance the lifecycle value of solar equipment.