Rooftop Solar vs Diesel Power
In India, the energy landscape of 2024 reveals a significant contrast between rooftop solar power and diesel-generated power. Rooftop solar power has gained substantial traction as a renewable energy source, offering cost benefits and sustainability. The average cost of rooftop solar power ranges from ₹2.50 to ₹3.50 per kilowatt-hour (kWh), influenced by factors such as geographic location and the scale of installation (Source: Ministry of New and Renewable Energy, industry reports).
State policies and incentives play a crucial role in enhancing the attractiveness of rooftop solar power. For example, states like Gujarat and Maharashtra have robust net metering policies, allowing consumers to sell excess solar power back to the grid. These policies reduce the payback period for solar installations, making them more economically viable (Source: Gujarat Energy Development Agency, Maharashtra State Electricity Distribution Company Limited).
In contrast, diesel-generated power, while still prevalent in remote areas or as a backup during grid outages, is significantly more expensive. The cost of diesel power ranges from ₹25 to ₹30 per kWh, driven by the high expense of diesel fuel and the maintenance of diesel generators (Source: Federation of Indian Chambers of Commerce & Industry, diesel suppliers). Industries and establishments requiring uninterrupted power supply often resort to diesel power, but its economic viability is increasingly challenged by the affordability and sustainability of rooftop solar.
Rooftop Solar vs Grid Power
When comparing rooftop solar power to grid electricity, several key differences emerge. Grid electricity remains the primary power source for most consumers and industries in India. However, the cost of grid power varies significantly across states and consumer categories. For example, industrial tariffs range from ₹5.00 to ₹8.00 per kWh, while residential tariffs range from ₹4.00 to ₹7.00 per kWh, depending on the state (Source: Central Electricity Authority, respective state electricity boards).
- Rooftop solar power stands out as a cost-effective alternative, with lower operational and maintenance costs compared to grid electricity. States with favorable solar policies, such as Gujarat and Maharashtra, further enhance the economic appeal of rooftop solar through subsidies, tax incentives, and net metering. These factors make rooftop solar power particularly competitive in regions with higher grid tariffs.
Here is a comparative table of industrial and residential grid tariffs (per kWh) in selected states as of 2024:
|
State |
Industrial Tariff (₹/kWh) |
Residential Tariff (₹/kWh) |
|
Andhra Pradesh |
6.00 – 7.00 |
5.00 – 6.00 |
|
Telangana |
5.50 – 6.50 |
4.50 – 5.50 |
|
Tamil Nadu |
6.50 – 7.50 |
5.50 – 6.50 |
|
Karnataka |
5.00 – 6.00 |
4.00 – 5.00 |
|
Maharashtra |
7.00 – 8.00 |
6.00 – 7.00 |
|
Gujarat |
5.50 – 6.50 |
4.50 – 5.50 |
(Source: Central Electricity Authority, respective state electricity boards)
Disclaimer:
The tariff table provided in this report is based on general ranges sourced from publicly available information and industry reports as of the latest update. Actual grid tariff rates may vary due to factors such as regulatory changes, seasonal adjustments, and specific consumer categories.
Comparative Analysis
The comparative analysis reveals several insights into the energy market in India:
- Cost Efficiency: Rooftop solar power is increasingly cost-competitive compared to both diesel and grid electricity, especially in states with favourable solar policies like Gujarat and Maharashtra. The lower operational and maintenance costs of solar installations contribute to their economic appeal.
- Regional Variations: States like Karnataka and Telangana offer relatively lower grid tariffs, making grid power more affordable compared to other states like Maharashtra and Tamil Nadu. This regional disparity influences the economic calculations of industries and consumers considering energy options.
- Environmental Impact: Both rooftop solar and grid power contribute to reducing carbon footprints compared to diesel-generated power. As environmental regulations tighten and awareness of sustainability grows, the preference for renewable energy sources is expected to increase.
4. Policy Implications: State-level policies play a crucial role in shaping the adoption of renewable energy sources. States with proactive policies, such as subsidies, tax incentives, and net metering, tend to see higher uptake of rooftop solar installations among residential and commercial consumers.
