Chennai: When world over the prices of solar panels are falling drastically, the price of rooftop grid connected solar photovoltaic power plant sold by Tamil Nadu Energy Development Agency (Teda) empanelled installers has gone up by Rs 6,000 per kilowatt following reduction in Centre's subsidy.
At present, lowest cost quoted by an installer for a kilowatt capacity solar rooftop system is Rs 50,500 after deduction of both the centre and state government's subsidy. Interestingly, the same installer had supplied rooftop SPV system at Rs 43,700 per KW till March this year.
Teda officials attribute the increase in the cost to the revision of benchmark capital cost of rooftop SPV system by the ministry of new and renewable energy. MNRE has revised the capital cost of a kilowatt scale projects from Rs 1 lakh to Rs 80,000. This in effect has resulted in reduction in quantum of subsidy. The 30 per cent subsidy provided by MNRE with respect to benchmark capital cost has come down to Rs 24,000 per kw from Rs 30,000 per kw.
“This reduction has reflected in the cost of systems sold by our installers,” the official said. Factoring in the Centre's subsidy of Rs 24,000 and the state's incentive of Rs 20,000, the net cost of a one-KW system ranges from Rs 50,500 to Rs 1,04,470. The vendors also supply rooftop SPV system of two kilowatt, five kilowatt and 10 kw capacities. So far, Teda has sanctioned 6,371 application under the CM's Solar Rooftop Capital Incentive Scheme.
One of the installers Frontline Systems & Services Pvt Ltd, director, K. Arivazhagan said that various factors determines cost of the solar system include panels, inverters and kind of mounting structure required for placing the panels. He said that installing solar panels in an open shadow free rooftop is cheaper. “If you need to extend the structure to mount the panels, it will cost more,” he noted.
He said that the demand for rooftop solar system would go up if more awareness is created. He noted that many consumers were looking for rooftop solar system with battery backup. However, the solar system with battery backup will not get subsidy from both the Centre and the state.
However, Teda official said that grid connected rooftop solar system is the most cost effective and offers higher return for the consumers than the system with batter backup. “The cost of batter is very high and it should be changed every two year. The consumer will incur recurring expenditure on battery,” the official said.
