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  • PM Suryoday Policy Puts Solar on Steroids: Will Discoms Be Caught in the Shadow?

PM Suryoday Policy Puts Solar on Steroids: Will Discoms Be Caught in the Shadow?

Posted on January 29, 2024March 31, 2024 Solar
PM Suryoday Policy Puts Solar on Steroids: Will Discoms Be Caught in the Shadow?
by Pratik Leave a Comment on PM Suryoday Policy Puts Solar on Steroids: Will Discoms Be Caught in the Shadow?

With a target of equipping 1 crore households with rooftop solar systems, Prime Minister Modi’s recently announced “Pradhan Mantri Suryodaya Yojana” scheme promises not only to boost the adoption of renewable energy but also to propel India toward energy self-reliance (Urja Atmanirbharta).


While the goals are commendable, let’s unpack the announcement with a critical eye:

๐—ง๐—ฎ๐—ฟ๐—ด๐—ฒ๐˜ ๐˜ƒ๐˜€. ๐—œ๐—บ๐—ฝ๐—ฎ๐—ฐ๐˜:
โ—พ Aiming for 1 crore households translates to roughly 10 GW of installed capacity, assuming 1 kW per household. Doubling this assumption reaches 20 GW, palpable but not groundbreaking compared to the recent ambitious renewable energy targets.

โ—พ The key differentiator here might be speed: mission mode execution could see this achieved much faster than traditional scheme-based deployments.

๐—˜๐˜…๐—ฒ๐—ฐ๐˜‚๐˜๐—ถ๐—ผ๐—ป ๐—ฎ๐—ป๐—ฑ ๐—ฆ๐˜๐—ฎ๐—ธ๐—ฒ๐—ต๐—ผ๐—น๐—ฑ๐—ฒ๐—ฟ๐˜€:
โ—พ The government’s penchant for “mission mode” initiatives could translate to swift progress but raises concerns about long-term policy stability.

โ—พ Established PV companies, who were in the business of centralized large-scale PV deployment, are likely to enter the decentralized sector and rapidly expand their franchise networks, further consolidating the market. Few have already entered the distributed Pv market.

โ—พ The Performance-Linked Incentive (PLI) scheme is expected to boost manufacturing in India, addressing a crucial bottleneck. The scheme will bear fruit by 2024, ensuring strong domestic supply chains.

๐—ง๐—ต๐—ฒ ๐——๐—ถ๐˜€๐—ฐ๐—ผ๐—บ ๐——๐—ถ๐—น๐—ฒ๐—บ๐—บ๐—ฎ:
โ—พ Discoms (distribution companies) have a legitimate concern about revenue loss from grid-connected rooftop PV systems under the present metering and billing mechanisms and similar provisions in existing rooftop solar systems. Discoms might voice concerns over the scheme’s impact on revenue and grid stability.

๐—จ๐—ป๐—ฎ๐—ป๐˜€๐˜„๐—ฒ๐—ฟ๐—ฒ๐—ฑ ๐—ค๐˜‚๐—ฒ๐˜€๐˜๐—ถ๐—ผ๐—ป๐˜€:
โ—พ ๐—”๐—ฑ๐—ฑ๐—ฟ๐—ฒ๐˜€๐˜€๐—ถ๐—ป๐—ด ๐—ฑ๐—ถ๐˜€๐—ฐ๐—ผ๐—บ’๐˜€ ๐—ฐ๐—ผ๐—ป๐—ฐ๐—ฒ๐—ฟ๐—ป๐˜€ ๐—ถ๐˜€ ๐—ฝ๐—ฎ๐—ฟ๐—ฎ๐—บ๐—ผ๐˜‚๐—ป๐˜ ๐˜๐—ผ ๐—ฎ๐˜ƒ๐—ผ๐—ถ๐—ฑ ๐—ฐ๐—ฟ๐—ฒ๐—ฎ๐˜๐—ถ๐—ป๐—ด ๐—ป๐—ฒ๐˜„ ๐—ฝ๐—ฟ๐—ผ๐—ฏ๐—น๐—ฒ๐—บ๐˜€ ๐˜„๐—ต๐—ถ๐—น๐—ฒ ๐˜€๐—ผ๐—น๐˜ƒ๐—ถ๐—ป๐—ด ๐—ฒ๐˜…๐—ถ๐˜€๐˜๐—ถ๐—ป๐—ด ๐—ผ๐—ป๐—ฒ๐˜€.

โ—พ Grid modernization and infrastructure upgrades are crucial to integrate large-scale rooftop solar seamlessly.

โ—พ Financial sustainability and affordability for beneficiaries require careful consideration.

๐—Ÿ๐—ผ๐—ผ๐—ธ๐—ถ๐—ป๐—ด ๐—”๐—ต๐—ฒ๐—ฎ๐—ฑ:
The Pradhan Mantri Suryodaya Yojana has the potential to be a game-changer. Still, its success hinges on addressing the concerns of discoms, prioritizing grid infrastructure, and ensuring affordability for beneficiaries. Open dialogue, robust policy design, and a focus on long-term sustainability will be key to unlocking the true potential of India’s rooftop solar dream.

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