Solar power in india

 Net Meter- Use and Earn: Net metering allows solar users to sell surplus energy back to the grid, generating credits and reducing electricity bills [Jakson, 2024]. Solar systems connect to the grid via net metering, allowing excess power to offset electricity use at a 1:1 ratio, leading to savings. Customers can earn Rs 2 per kWh generated, amounting to Rs 2,000 to Rs 3,000 annually, with generation between 1,100 and 1,500 kWh. They can also sell excess electricity at government-set tariffs [Citizen Solar, 2024]. Each state in India has its net metering policies, so understanding regional specifics can maximize savings [Jakson, 2024].

Fight of Conventional vs Solar: In India, coal power prices are the lowest, ranging from ₹2.00 to ₹3.00 per kWh, while rooftop solar costs between ₹2.50 and ₹3.50 per kWh, making solar power competitive with coal. Petroleum is at ₹10.00 to ₹12.00 per kWh, followed by natural gas at ₹6.00 to ₹7.00 per kWh [J. Sanjeev, 2023]. Grid power costs vary by state, with industrial tariffs between ₹5.00 and ₹8.00 per kWh and residential tariffs between ₹4.00 and ₹7.00 per kWh. Diesel power costs ₹25 to ₹30 per kWh due to high diesel fuel prices and maintenance costs [EAI, 2024]. By 2030, the cost of solar energy is projected to be between Rs. 1.90 and Rs. 2.30 per kWh, with storage costs falling by about 70% and new non-pithead coal could cost Rs. 6.98 per kWh, with cheaper non-pithead coal priced at Rs. 4.85 per kWh [ET Energy World, 2019].

Generating credits: Renewable Energy Certificates (RECs) confirm the ownership of one megawatt-hour (MWh) of electricity produced from clean energy sources, aiding in offsetting electricity consumption and can be sold once renewable energy is fed into the grid, allowing buyers to claim a portion of their energy as renewable [Jennifer L, 2023]. The emissions are calculated for renewable power such as solar, compared with conventional energy emissions and then converted to carbon credits [R. Teknoloji, 2023]. Solar projects often produce specific Solar Renewable Energy Credits (SRECs) [Jennifer L, 2023]. In India, renewable energy projects can generate carbon credits through mechanisms like the Clean Development Mechanism (CDM) under the Kyoto Protocol [Carbon Credits HQ, 2024].

Opt for Accelerated Depreciation for Businesses: Commercial users can utilize accelerated depreciation (up to 40%) to significantly reduce tax liabilities on solar installations, making solar a profitable investment for business owners [Jakson, 2024]. Under Section 80-IA of the Income Tax Act, of 1961, solar power-generating companies are granted a tax waiver on 100% of profits for ten assessment years from the initial assessment year [R. Amin, 2024]. Fixed prices for power and benefits from government incentives like tax rebates and capital subsidies, enhance solar power’s financial appeal [ET Energy World, 2019].

Leverage incentives: India's Ministry of New and Renewable Energy (MNRE) offers up to 40% Central Financial Assistance (CFA) on residential rooftops for systems up to 3kWh [WAREE, 2024]. In India, individuals can secure loans of up to Rs 10 lakhs from nationalized banks for rooftop solar PV systems as part of home loans. Government subsidies lower installation costs up to Rs. 42,000 to Rs. 49,000 [Citizen Solar, 2024].

References:

[1] Waaree Energies Limited, Government incentives and their impact on solar panel prices in India: A 2024 perspective, 2024

[2] Jakson, Government incentives for solar rooftops in India, 2024

[3] ET Energy World, The Economic Times, Solar power cost will fall to Rs 1.9 per unit in India by 2030: TERI study, 2019

[4] Jahagirdar Sanjeev, Electricity Production and Price Trends in India for Renewable and Non-Renewable Energy Sources, 2023

[5] Citizen Solar, Government Subsidy On Solar Panel (2024), 2024

[6] Rupali Amin, Income Tax Benefits for Solar-Powered Homes in India, 2024

[7] EAI, Rooftop Solar vs. Diesel & Grid, 2024

[8] Rast Teknoloji, Medium, How to calculate Carbon Credits for Renewable Energy Power Plants, 2023

[9] Carbon Credits HQ, Renewable Energy and Carbon Credit Projects in India, 2024

[10] Jennifer L, Carbon Credits.com, What are Renewable Energy Credits vs. Carbon Credits, 2023