Grid Parity of Residential Building Rooftop Solar PV in India

In: Strategic planning for energy and the environment

Abstract

Rooftop solar photovoltaic(PV) installation in India have increased in lastdecade because of the flat 40 percent subsidy extended for rooftop solarPV systems (3 kWp and below) by the Indian government under the solarrooftop scheme. From the residential building owner's perspective, solar PVis competitive when it can produce electricity at a cost less than or equalgrid electricity price, a condition referred as "grid parity". For assessing gridparity of 3 kWp and 2 kWp residential solar PV system, 15 states capitaland 19 major cities were considered for the RET screen simulation by usingsolar isolation, utility grid tariff, system cost and other economic parameters.3 kWp and 2 kWp rooftop solar PV with and without subsidy scenarioswere considered for simulation using RETscreen software. We estimate thatwithout subsidy no state could achieve grid parity for 2kWp rooftop solarPV plant. However with 3 kWp rooftop solar PV plant only 5 states couldachieve grid parity without subsidy and with government subsidy number ofstates increased to 7, yet wide spread parity for residential rooftop solar PV isstill not achieved. We find that high installation costs, subsidized utility grid supply to low energy consumer and financing rates are major barriers to gridparity