How Solar Energy is Changing India’s Power Landscape

India’s renewable energy transformation is altering the methods of electricity production,
distribution, and consumption. Power distribution companies and households are among the
primary beneficiaries. The increasing use of solar energy is providing financial, operational, and
environmental benefits for both utilities and citizens.

Benefits for Power Distribution Companies (DISCOMs)
India’s DISCOMs have historically faced challenges such as high electricity procurement costs,
grid losses, and financial difficulties. Solar energy is assisting them in addressing these issues.

• Reducing Electricity Procurement Costs
  • Coal-based electricity is costly for DISCOMs.
  • Solar energy, obtained from parks and rooftop installations, costs only ₹2.5–₹3 per unit.
  • Enables utilities to lower operational costs and enhance financial stability.
• Meeting Renewable Energy Compliance
  • DISCOMs are required to procure a minimum percentage of power from renewable sources.
  • By incorporating solar, they can:
    • Fulfill government-mandated renewable targets
    • Avoid penalties
    • Enhance their sustainability profile
• Reducing Grid Losses
  • Decentralized solar generation minimizes the distance electricity must travel, leading to:
    • Less transmission loss
    • Better voltage stability
    • Reduced pressure on grid infrastructure
• Enhancing Revenue Models
  • Through net metering, surplus solar power from households and businesses can be fed back into the grid.
  • Benefits include:
    • Balanced demand-supply management
    • Opportunities to monetize excess energy
    • Improved consumer engagement and bill recovery
• Government Support
  • DISCOMs benefit from assistance through:
    • Initiatives like Rooftop Solar Scheme Phase II
    • Viability Gap Funding (VGF) for solar projects
    • Improved credit ratings through the adoption of renewable energy

How Households Gain from Solar Energy

• Substantial Savings on Utility Bills
  • Rooftop solar installations produce electricity for homes.
  • Can cut monthly expenses by 70–80%.
  • Net metering enables the sale of surplus energy back to the grid.
• Dependable, Continuous Power
  • Solar panels equipped with battery storage offer:
    • A steady supply of electricity
    • Decreased reliance on DISCOMs
    • Consistency during high-demand periods
• Government Support for Homeowners
  • Initiatives like the Pradhan Mantri Suryodaya Yojana offer:
    • Up to 40% subsidy on rooftop solar installations
    • Accessible loans and EMI plans
• Beneficial Environmental Effects
  • Transitioning to solar energy allows families to:
    • Lower carbon emissions
    • Fight against climate change
    • Aid in achieving India’s Net Zero 2070 objective
• Generation of Green Employment
  • The solar industry creates job opportunities in:
    • Manufacturing of panels
    • Installation and upkeep
    • Research and development
  • This fosters:
    • Economic advancement
    • Stable jobs

Mutual Benefits: A Win-Win Situation

Solar energy is transforming the electricity landscape in India. Utilities experience cost
reductions, improved operational efficiency, and compliance with regulations, while households
enjoy decreased bills, energy security, and environmental advantages.

With India aiming to reach 500 GW of renewable energy by 2030, the combined efforts of
DISCOMs, citizens, and government initiatives will pave the way for a cleaner, affordable, and
sustainable energy future.