Subsidy for Solar Energy: A Mirage?
Throughout the world, electricity is primarily
generated from coal or water. Reserves of both of these resources, coal and
water are getting depleted due to excessive usage by man. We are aware of this
news. A mighty country like China is in a problem due to coal-shortage. Our
country too is on the threshold of this problem. Naturally, alternative energy
sources are going to gain or rather have already gained importance. Wind mills
for generating electricity can be erected only in those places where wind is
available at a particular speed. So, there are some limitations on the use of
this source. However, it has been understood that unlimited energy can be
generated from the sun. Sunlight is always available in more or less
proportions all over the world. In India, most areas have proper sunlight for
nearly three hundred days every year. Besides, there are several benefits of
generating solar energy. This system has a life of nearly 25-30 years and
requires no maintenance. Electricity gets continuously generated from these
systems. However, erecting such solar systems is very expensive. Energy
generated from such costly systems needs to be stored in batteries and utilized
as per the need. These batteries are also expensive and their maintenance is
expensive too. So, this energy that seems to be free is not affordable to the
customers and so the common customer was not eager to invest therein.
Net-metering:
The
technology of net-metering was developed as a solution to this problem. The
usage of batteries was eliminated in net-metering. In this technology, rather
than storing the solar energy that is generated through panels on roof-tops, it
is directly connected to the grid of MSEDCL. This system which is very
profitable to the customers is very popular in Europe and America. Those people
who necessarily go out on the weekends sell this excess energy generated on
their roof-tops and earn money. National solar mission got established in India
in around 2010. Rising need of energy and protection of environment prompted
Gujrat, Rajasthan, Karnataka, Andhra Pradesh and Kerala to take lead in the
primary years and set up solar systems. They made the subsidies offered by the
central government, reach the customers in huge numbers. But, MERC, the
regulatory body in Maharashtra took a delayed decision about solar energy and
declared net metering policy on 10 September 2015. Better late than never!
Subsidy, MSEDCL
and obstacles:
The central
ministry of New and Renewable Energy (MNRE) offered subsidy to give a helping
hand to the customer for encouraging solar policy and erecting the costly
system. The responsibility of distributing this subsidy was entrusted to the
state administration. The state government entrusted this responsibility to
Maharashtra State Energy Development (MEDA) and they were given a target of
subsidizing systems of 50 Megawatts per year. MEDA completed the target in
2017-18. The process of distributing subsidy was pretty aligned and
transparent. Several customers of electricity took benefit of this subsidy.
Unfortunately, this subsidy-distribution stopped in 2019. Now, in 2019- 20,
Maharashtra government entrusted the work of distributing the subsidy to Maharashtra
State Electricity Distribution company Ltd. (MSEDCL).
When MSEDCL was
given this work, it decided to appoint agencies to do the needful. It invited
tenders for the same. Several stringent conditions were levied in the process.
For e.g. - A
sum of five lakhs should be paid as a security deposit.
- It was made mandatory for the agency to have
an office and staff in the city where they erected the solar system. - It was
made compulsory for the agencies to submit the detailed description of the
solar energy generated through the systems to the office. It was a very stringent
condition.
- MSEDCL was
to hand over the amount of subsidy to the agency rather than transferring it
directly to the customer’s account. This meant that there was no guarantee of
when the 40% payment due from MSEDCL would be received. What was the assurance
of getting it? Agencies were confused by such doubts and they did not fill up
the tenders. Due to such negative policy of the MSEDCL, only 26 agencies are
seen to be distributing subsidy in Maharashtra today. How will just 26 agencies
suffice to serve a huge region like Maharashtra? There is a great possibility
that most of these agencies will not be able to operate due to lack of
knowledge and experience in this field. How can the MSEDCL meet the target of
subsidy at this speed?
- Actually, there is a system for securing
online approval for net-metering system but yet, customers, electrical
contractors and solar producers have to repeatedly visit the offices of
Electricity Inspection Department and MSEDCL. Everyone working in this sector
is aware of this reality. The problems that solar system facilitators face
while securing approval from MSEDCL and Electrical Inspection office is content
enough for an independent article…
Last year
the MSEDCL was given a target of erecting systems through customers that would
generate 25000 kilowatts (25 Megawatts) energy; of which the board has barely
reached 600 kilowatts (0.6 Megawatts). Besides, MNRE has agreed to grant an
incentive of 2% to MSEDCL, if they achieve the target of 25 Megawatts. Let
alone getting the incentive, the board is nowhere near completing the target
too. If a comparative study of other states is done, we can understand how the
situation there is different. For e.g., the nodal agency GEDA in Gujrat
distributed subsidy to customers generating 800 Megawatts of energy. In short,
other states have shown a far better performance than Maharashtra. The central
government is releasing plenty of subsidies but they are not being distributed
to the customers. This is the reality. For the last few days, the MSEDCL is
sending mobile messages to its consumers regarding the subsidy. This is a
positive move. But seeing the overall scenario, customers have serious doubts
about the intention of the board. Doesn’t it want to distribute the solar
energy subsidy that it is generously receiving from the central government?
Maharashtra
solar Manufacturers Association (MSME) has taken lead of discussing the state
of affairs with the MSEDCL and Ministry of New and Renewable Energy (MNRE) and
is trying its best to solve the problems. They are trying to work out ways to
overcome the stringent conditions levied on professionals. Customers also
should take efforts to understand the problems in getting solar subsidy.
Government bodies should also look at these problems in a positive spirit. Only
then can subsidized solar energy reach remote areas. Or else, it will just be a
mirage!
Rajeev Jatkar
Ex-President Electrical Contractors'
Associations of
Maharashtra
Pune.
