Decrease in Residential Solar Installations
The Karnataka government’s ambitious Gruha Jyothi scheme, offering free electricity to households, is reportedly hampering the adoption of residential solar rooftop installations in Bengaluru. Industry experts note a significant decline in installations over the past few months as households benefit from either zero bills or subsidized bills through the scheme.
Impact on Solar Industry
Members of the Karnataka Renewable Energy Systems Manufacturers Association (KRESMA) reveal that since the launch of the Gruha Jyothi scheme, many potential clients have withdrawn from installing residential solar rooftop systems. Approximately 15 clients have abandoned projects in the last four months, impacting the solar systems sector.
Lack of Incentives and Business Decline
Several vendors report a substantial 30% reduction in business for residential solar systems. Deshpal KS, Managing Director of Prolight Systems, highlights that it’s not solely a matter of affordability; clients perceive a lack of incentive, leading to hesitation in solar investments.
Government Scheme’s Unintended Consequences
While vendors attempt to educate consumers about earning from excess power supplied to the grid, the prevailing mindset is skeptical. The Gruha Jyothi scheme offers zero bills, delaying the Return on Investment (ROI) period for solar projects, creating reluctance among potential investors.
Shrinkage of Solar Rooftop Market
The government estimates that out of 2.16 crore residential connections in the state, approximately 2.14 crore are eligible for the Gruha Jyothi scheme. This extensive coverage, while benefiting consumers, poses challenges for the solar rooftop market as interest diminishes due to the scheme’s attractive offerings.
Source：deccanherald.com
