KPMG says rooftop solar power could be a game-changer for India

KPMG believes that the solar lease model could become a game-changer.

Rapid fall in solar prices and increase in cost of conventional power driven by fuel shortages has brought ‘grid-parity‘ closer, which is expected to happen at a broad scale level by 2017 in India, according to the report, KPMG said in a report.

KPMG sees India’s cumulative solar photovoltaic market potential by 2016-17 at around 12,500 megawatts, which would include around 4,000 mw of rooftop market.

KPMG believes that the solar lease model could become a game-changer.

In a report titled ‘The Rising Sun’, KPMG said that the rooftop solar power will see parity faster with utility tariffs due to high transmission and distribution losses and cross-subsidies present today and parity in many categories can emerge as early as 2014.

“Given the issues of fuel shortages and import dependence of the energy sector, solar power should be given a significant strategic thrust by the government. The National Solar Mission has made a good beginning. The momentum should be sustained if the investments made by the country in the last few years are to give the full benefit”, says Arvind Mahajan, Partner, Head of Energy and Natural Resources vertical at KPMG in India.

The state governments, utilities and regulators should encourage solar power to realize its potential by providing critical enablers such as net metering infrastructure, energy banking facility and developing an ecosystem for rooftop market installation.

“Solar power technology can help India leapfrog in the energy sector as we are in a unique position in time when solar power costs are becoming competitive with alternate sources at a time when our energy requirement is going to grow two times over the next decade.