Bengaluru: Solar power offers a more sustainable, cost-effective, and eco-friendly alternative to traditional energy sources, ensuring greater energy security through reliable and low-maintenance solutions. Consumers can significantly reduce or even eliminate costly electricity bills by shifting to solar energy for electricity needs, leading to substantial long-term savings. This transition supports a sustainable future while minimising the ongoing maintenance required for solar power systems.
In this context, solar power panels have emerged as a viable solution to replace traditional power grids, with the government actively encouraging their adoption. One of the key attractions of solar energy is its low capital cost, promising future potential, and wide-ranging benefits. Solar rooftop installations, in particular, have significantly relieved households, often reducing electricity bills to zero. Furthermore, any excess power generated by these systems can be fed back into the grid, with the government offering compensation for this additional energy. This incentivises self-sustainability among consumers while contributing to the national energy pool.
Government Incentives and Challenges
The increasing power demand has made every unit of energy produced essential, as noted by officials from the Bangalore Electricity Supply Company Limited (BESCOM). However, the incentives provided by the government often fail to fully benefit the end consumers, as much of it is consumed by Original Equipment Manufacturers (OEMs) and Engineering, Procurement, and Construction (EPC) contractors. These entities play a significant role in the distribution of solar systems, but their involvement can inflate costs and limit the financial advantages intended for consumers.
Solar intermittency, where energy production is dependent on sunlight availability, remains one of the most significant challenges to generating photovoltaic (PV) power plants. With the sun not visible for 24 hours a day, especially in regions that do not experience extreme latitudes, solar energy production naturally fluctuates. The efficiency of solar cells, which largely determines the performance of solar panels, is another factor influencing the commercial viability of solar systems.
In an interview, Chellappa Tirumalai Velu, CEO of a power renewables firm in Bengaluru, which offers comprehensive services for wind, solar, and mini hydroelectric power plants, ranging from concept development to commissioning, said that most solar cells in use today are imported, providing good efficiency levels. However, the efficiency and long-term reliability of domestically manufactured cells remain unproven. Furthermore, the quality of CKD (Completely Knocked Down) or panel manufacturing plays a critical role in ensuring consistent efficiency over extended periods.
A typical home solar installation generates approximately 400 watts of power per hour under direct sunlight. In a day with 10 hours of sunlight, it can produce around 4 kWh of power. While this output may vary based on sunlight exposure, the system typically requires a battery to store excess energy for nighttime use, particularly in off-grid setups. Solar power systems need low maintenance, with cleaning required every 10 days. However, many consumers neglect this task, leading to concerns over panel efficiency and potentially increasing long-term maintenance costs.
Power Consumption and Solar System Requirements
On average, an Indian household consumes around 240 kWh (kilowatt-hour) or units of electricity per month, which translates to roughly 8 units per day. A 2kW solar power system, which generates 8-10 units a day, can meet the daily energy needs of many households. For a 3KW solar power system, the average power generation is 360 kWh per month or around 12-15 kWh per day. For a home that requires 15 units of electricity per day, six solar panels would be required, assuming each panel generates around 2.5 kWh of electricity daily.
| Average Monthly Household Electricity Consumption | 8 units/day (240 kWh/month) |
| 2kW Solar Power System Generation | 8-10 units/day (240 kWh/month) |
| 3kW Solar Power System Generation | 12-15 units/day (360 kWh/month) |
| Solar Panels Required for 15 Units/Day | 6 panels (each generating around 2.5 kWh/day) |
The Prime Minister Surya Ghar Muft Bijli Yojana scheme, which provides subsidies for solar rooftop installations, has further incentivised consumers to adopt solar energy. According to BESCOM, there were 6.11 lakh enrollments from Karnataka under the scheme, including 1.7 lakh applications from Bengaluru alone. The scheme offers Rs 30,000 per kW for up to 2 kW and Rs 18,000 per kW for additional capacity up to 3kW, with a total subsidy cap of Rs 78,000 for systems larger than 3kW.
By January 2025, approximately 8.5 lakh households had availed themselves of this scheme across India. However, the uptake in Karnataka has been relatively low, with only 2.07 lakh of the 6 lakh eligible households applying for rooftop solar systems. According to BESCOM, about 5690 households have seen solar installations in Bengaluru. Among those who have adopted solar power, the vast majority of installations are concentrated in Bengaluru, Dakshina Kannada, and Mysuru.
Barriers to Widespread Adoption in the Residential Sector
Despite the significant advantages of solar power, the residential sector has been slower to adopt these systems, primarily due to factors such as massive initial investment, slow payback period, high return on investment (ROI) cost due to the capital cost, cross-subsidised consumer category, and limited awareness. According to BESCOM officials, the ROI period has been reduced through advanced technology, and this has decreased the capital cost.
One key challenge is the Gruha Jyothi Yojana, a state government initiative in Karnataka, which provides up to 200 units of free electricity per month to eligible households. This subsidy makes it less attractive for households to invest in solar power, as the immediate financial benefits are less pronounced.
The high capital expenditure (Capex) required to install solar panels, combined with the limited return on investment (ROI), remains a significant deterrent. Most households require 100 to 200 units of electricity per month, which can be met by 1- or 2-KW solar plants. However, the unavailability of plants smaller than 3KW makes this option unfeasible and increases investment costs by Rs 40,000 to Rs 50,000. Furthermore, the state's low payback rates for excess power fed into the grid make solar energy financially less attractive.
Government policies mandating the use of DCR (Domestic Content Requirement) panels, which are 20 per cent more expensive than other available panels, exacerbate the financial challenges for consumers. These panels are less efficient and significantly costlier, limiting the adoption of solar power. Additionally, while solar panel owners are removed from the Gruha Jyothi Scheme after installation, they are still required to pay fixed charges, making the system less appealing.
Talking to ETV Bharat, Ramesh VS, Energy Auditor (BEE-MOP) and General Manager of Demand Side Management at BESCOM, Bangalore, shared insights on the Gruha Jyoti Scheme and Solar Rooftop Photovoltaic (SRTPV) initiatives. Out of 2.4 Crores of domestic consumers in BESCOM, 1.73 Crores are eligible for the Gruha Jyoti Scheme, with 1.23 Crores having availed its benefits.
| Type of Scheme | Nos. | Capacity in MW |
|---|---|---|
| Non-Subsidy | 8116 | 48.37 |
| Subsidy | 4075 | 16.618 |
He also highlighted the success of the PM Surya Ghar Scheme, under which domestic category consumers are installing Solar Rooftop Plants. Since the launch of BESCOM’s SRTPV scheme in 2014, the residential sector has installed a total of 12,191 plants-- 8,116 non-subsidised with a capacity of 48.37 MW and 4,075 subsidised with a capacity of 16.618 MW. He explained that installation costs are reduced with higher capacity RTS plants and clarified that consumers are eligible for subsidies only after the successful commissioning of their RTS plants, which are under a 25-year Power Purchase Agreement.
Regarding the use of DCR Solar PV Modules, Ramesh emphasised the government’s mandate to boost local production, create jobs and reduce imports. He assured that solar panel installations are verified through a DCR verification portal by the Ministry of New and Renewable Energy (MNRE), addressing concerns about non-DCR panels.
On the technical requirements, Ramesh VS confirmed that solar rooftop plants must be installed on buildings as per GoK/Karnataka Electricity Regulatory Commission (KERC) norms, with recent orders allowing the solar rooftop plant to be mandatorily mounted on the space available of the roof of any residential, commercial, institutional, or industrial buildings which are constructed as per building constructions acts/norms. The KERC vide its order dated 11.06.2024 has allowed the installation of solar panels on the roof of the building & roof of the carport for all nonresidential consumers including the Apartment Owners Association.
| Sl. No. | Type of Household | Subsidy Applicable |
|---|---|---|
| 1 | Individual Household |
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| 2 | Resident Welfare Associations/ Group Housing Societies |
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To combat solar intermittency, he noted that KERC has approved the use of Hybrid Inverters with batteries to store energy for use during low sunlight or grid outages. Ramesh also discussed the billing method and payback for SRTPV units, explaining that the net billing method, which offsets exported and imported units, significantly reduces consumers’ electricity bills. In cases where exported energy exceeds imported energy, BESCOM compensates consumers according to KERC’s tariff.
To streamline the process, BESCOM has implemented an online platform for executing SRTPV Power Purchase Agreements (PPAs) through digital stamping, making the process faster and hassle-free with instant approvals via Aadhaar-based OTPs.
The Future of Solar Power: Solutions and Suggestions
When asked about the challenges and why the residential sector lags in installing solar panels despite numerous advantages, Chellappa Tirumalai Velu emphasised that high Capex and limited ROI are key barriers to the growth of residential solar installations. The commercial viability due to high Capex and subsidies eaten by the OEM / EPC contractors are the real hurdles.
He said that for subsidies, DCR panels have to be used which are 60 to 70 per cent costlier with less efficiency. People are advised to go for the project without availing subsidy by using approved listed panels which is cost effective with higher efficiency and high ROI.
Talking about another obstacle Chellappa Tirumalai Velu said that individual houses are falling under the shadow. In apartment settlements, house owners aren’t able to install solar plants in the common area. A new policy is underway for installing solar plants at apartments by individual owners, which is expected to increase the number of installations once it comes into effect. Regarding the payback, Velu said that the low cost for the excess energy pumped to Grid / ESCOM is considerably less which makes the investment unviable.
Talking to ETV Bharat, MM Vijayvergia, ME Power System, a leading Solar Expert in the Business of Solar rooftop installation with consultancy work of Mega Power Solar Plants, said that the policies surrounding the use of DCR (Domestic Content Requirement) and Non-DCR solar module systems are constantly evolving, with significant implications on cost and accessibility. DCR modules are more expensive (Rs 24-26 per watt) and less efficient compared to Non-DCR modules, which are priced more affordably at Rs 13 per watt.
As a result, people often opt for Non-DCR panels, which are more readily available and come with fewer bureaucratic hurdles—such as the absence of a requirement to submit subsidy applications. This ease of access has led many EPC players to install Non-DCR panels and owners unknowingly claim subsidies, often with minimal oversight by government officials. Mostly, a non-subsidised 5-10 KWh rooftop plant using a Non-DCR panel costs similar to or cheaper than a 5-10 KWh using a DCR panel with a government subsidy.
While the scheme for rooftop solar installations is beneficial, it primarily caters to wealthier households with sufficient roof space. Those from economically weaker backgrounds, who consume around 300 units of power, generally lack the roof space or financial means to invest in solar panels. Additionally, their houses are surrounded by multi-story buildings, so the presence of shadows from surrounding structures further limits the feasibility of rooftop solar on their roofs.
Even when roof space is available, there are practical challenges. Installing solar panels on small or raised structures, such as a 7-8 feet height, adds significant cost, making it less appealing for many. Furthermore, placing panels on rooftops compromises the space for other household needs, deterring many individuals from adopting this technology.
In summary, the complex policies and high costs associated with DCR solar systems, along with the physical limitations of rooftop space, have made Non-DCR panels the preferred option, despite potential subsidy misuse and lack of stringent monitoring. Chellappa Tirumalai Velu proposed linking government subsidies to power generation instead of capital cost, incentivising investments in high-quality, efficient products. This would benefit both consumers and the government by boosting solar generation and reducing long-term distribution losses.
