A 100 kW Solar Installation In Bihar Can Save Rs 2.7cr: CEEW Report

The report by the Council on Energy, Environment and water (CEEW) titled, ‘Community Solar for Advancing Power Sector Reforms and the Net-Zero Goals’, highlights the usage of rooftop solar in eastern Indian states of Bihar and Meghalaya and its corresponding benefits in terms of savings.  

The study uses a framework to evaluate the impact of installing 100 kw of solar by the North Bihar Power Distribution Company Limited (NBPDCL) and Meghalaya Energy Corporation Limited (MePDCL). The report finds that, it can help to save INR 2.7 crore (or USD 3.5 million) and INR 2.8 crore (or USD 4 million) during the lifetime of the project, respectively.

CEEW Report on Rooftop Solar in Bihar and Meghalaya

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It adds that, the per kw use in Bihar saves INR 2.7 lakh and Meghalaya INR 2.8 lakh. Whereas, in totality, a 500 MW community solar systems’ installation in Bihar results in a projected system-level net benefit of INR 10,478 crore over 25 years, states the report. It mentions that the (RTS) installations are primarily concentrated in two segments within the DRE sector – commercial and industrial (C&I). It finds that the residential sector only contributes 20 per cent of the total capacity. The high grid electricity tariff rates faced by C&I consumers make RTS adoption a value proposition.  

80 per cent of the total economic potential (57 GW) for RTS systems lies in the 0–3 kW system size

It mentions that, the about presently, the RTS reportedly has potential within 0-1kW category, which remains untapped due to unattractive economics and policy constraints. It adds that, only eight states allow RTS systems below 1 kW in their net-metering regulations, such as Haryana, Goa, Madhya Pradesh, and Maharashtra.

The report states that distributed solar holds an important place in India’s renewable energy ambitions. In 2022, as estimated, a 40 GW target was allocated to RTS out of the 175 GW target by 2022. The report recognizes that technical potential, in the distributed sector has struggled to keep pace with utility-scale solar deployments.

The DISCOM reportedly deploys a medium-sized solar PV system (100– 150 kW), with both states having comprising of rural households, with more than 80 per cent of households living in rural areas (Census 2011). In Bihar, more than 60 per cent of energy is sold to domestic consumers, whereas their share in the revenue is 31 per cent, resulting in a revenue gap.

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100 kW installation by DISCOM in Bihar and Meghalaya, contribute to lifetime savings of INR 2.7 crores and INR 2.8 crores respectively.

The report associates the first-year benefits to be to reduce the subsidy requirement by 8 per cent for Bihar. Based on the study of 100 kW installation by DISCOM in Bihar and Meghalaya, reportedly can contribute to lifetime savings of INR 2.7 crores and INR 2.8 crores respectively. The rooftop solar deployment in the residential sector, can result in net benefit of a 100-kW community solar installation is INR 62 lakh and INR 61 lakh for Bihar and Meghalaya respectively.

The study on utility-owned community solar model based on a state-level analysis for Bihar, finds that, the moderate (500 MW), ambitious (1000 MW) and highly ambitious (2000 MW) scenarios can lead to net system-level benefits of INR 10,478 crore, INR 20,956 crore and INR 41,913 crore, respectively, over a 25-year period. It finds that the distributed solar, is expected to play a catalytic role in the financial turnaround of the distribution sector by injecting low-cost solar. It highlights that the consumer segments has the highest share in with 80 per cent of the total economic potential lying between the 0–3 kW system size.

The report takes the case of Valuing Grid-Connected Rooftop Solar (VGRS) framework. The report finds that, among other benefits, savings were highest from the avoided power purchase cost. In terms of per kW, Bihar saves INR 2.7 lakh (or USD 3,558) per kW and Meghalaya INR 2.8 lakh (or USD 3690). The scaling up of community solar installation under different scenarios increases the benefits. A total of 500 MW community solar systems’ installation in Bihar results in a projected system-level net benefit of INR 10,478 crore (or USD 1.4 billion) over 25 years.

Within the power sector, the report finds that, the operational performance of discoms across India lags behind performance of discoms in other modern countries. It adds that, the T&D3 losses at the national level stand at ~20.66 per cent, with distribution losses amounting to INR 31,672 crore (or USD 4.17 billion4 ). It adds that, the AT&C losses vary from more than 30 per cent in Madhya Pradesh, Jharkhand, and Bihar, to less than 15 per cent in Tamil Nadu, Kerala, Punjab, Gujarat, Andhra Pradesh, etc. Whereas, reportedly, a few states and union territories perform well and incur surplus instead of revenue losses per unit, such as Gujarat, Assam, Chandigarh, and Mizoram

The report finds an association between an increase the target installations, and net benefits. Reportedly, under ambitious and highly ambitious scenarios, the net benefits stand at INR 20,956 crore (or USD 2.7 billion) and INR 41,913 crore (or USD 5.6 billion), respectively. It concludes that, the return on investment is positive under all three scenarios for DISCOM in Bihar.

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