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News Brief | October 2012

States must encourage rooftop solar installations: KPMG

As solar power is likely to reach parity for retail power consumers earlier than at the grid level, state governments and power utilities will be encouraging and promoting small scale rooftop solar power installations, KPMG India said. This will not only be viable, but help meet the energy shortfalls too.

Arvind Mahajan, partner and head-Energy and Natural Resources, KPMG India, said that given the financial constraints of power utilities, solar rooftop market for customer segments that already see parity with utility power tariffs has the potential to be a game changer in the coming five years. Within rooftop, the solar lease model is becoming attractive in the Indian market, Mahajan said. Power utilities are struggling on two sides to meet the energy shortfalls in the country. While on one hand they face host of challenges in new thermal capacity additions, on the other side these utilities are not able to recover the cost through consumer tariffs. Hence, there is a case for the utilities to encourage rooftop solar power for captive consumption that can displace the need for power procurement on the utilities part.

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