To create a thriving market for rooftop solar solutions (RTS) in rural India. The program is specifically focused on solarizing enterprise and institutional customers that rely heavily on diesel and other alternatives due to unreliable grid power.
Even though India has achieved ~100% household electrification, a majority of rural enterprises & institutions (E&I) remain underserved by the main grid – almost 40% of E&I customers are not connected to the grid, and of the 60% connected, grid reliability is a big challenge, resulting in high investment into fossil fuel. Rooftop Solar presents a scalable DRE alternative for productive use, especially for diesel-dependent, high load E&I customers (10 KW to 50 KW).
The total installed capacity for solar rooftop in India is ~7GW, growing at a CAGR of 70% in the past few years. However, this growth has largely been driven by large industrial and commercial customers (500KW+) in urban areas.
The rooftop market in rural areas of UP, Bihar, Jharkhand and Odisha is ~ 9 GW (equivalent to INR 36,000 crores), where current installations are serving only 5% of the total potential 2 owing to the inadequate supply side ecosystem and lack of financing options for customers and RESCOs serving this market.
The Government of India’s (GOI) 40GW target for grid-connected RTS
Over the last few years, the GOI, individual state governments and several national (such as SBI and PNB) and international banks (such as World Bank and ADB) have launched subsidy schemes, financing mechanisms, and incentives to promote uptake of solar rooftops to meet the 40GW target by 2022.