Solar rooftop Consumer Financing Scheme case of Vishakhapatnam

Case Study of the Day: Solar rooftop Consumer Financing Scheme case of Vishakhapatnam

The Solar Rooftop Consumer Financing Scheme in Vishakhapatnam, Andhra Pradesh, India is a successful example of how a government-backed program can help to promote the adoption of solar energy.

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Introduction

The Solar Rooftop Consumer Financing Scheme in Vishakhapatnam, Andhra Pradesh, India is a successful example of how a government-backed program can help to promote the adoption of solar energy. The scheme was launched in 2016 by the Andhra Pradesh Eastern Power Distribution Company Limited (APEDCL) in partnership with the Government of Andhra Pradesh, the National Renewable Energy Development Agency (NREDCAP), and Andhra Bank.

The scheme targets domestic consumers with less than 200 units of monthly electricity consumption. Under the scheme, consumers do not have to incur any upfront costs for installing a 1 kW solar rooftop system. The capital expenditure required for the system is split into three tranches:

50% is paid in the form of a subsidy from the Government of Andhra Pradesh.
25% is financed by Andhra Bank at a subsidized rate of interest.
25% is paid by the consumer in equal monthly instalments over a period of 5 years.

Benefits of the Scheme

The scheme has been very successful in promoting the adoption of solar energy in Vishakhapatnam. As of March 2023, over 10,000 solar rooftop systems have been installed under the scheme, with a total capacity of 10 MW. This has helped to reduce the electricity demand of these consumers by an estimated 10 million units per year.

Reduced carbon emissions: The installation of solar rooftop systems has helped to reduce carbon emissions by an estimated 10,000 tonnes per year.
Increased financial savings: Consumers who have installed solar rooftop systems have seen a significant reduction in their electricity bills.
Improved reliability of power supply: Solar rooftop systems provide a backup power supply during power outages.
Increased awareness of solar energy: The scheme has helped to raise awareness of solar energy among the residents of Vishakhapatnam.

The scheme is a win-win for all stakeholders. Consumers save money on their electricity bills, the government reduces its carbon emissions, and the solar industry benefits from increased demand. The scheme is a model for other cities and states in India that are looking to promote the adoption of solar energy.