Q: What sort of opportunity the Solar energy programmes offer to SME sector.
A: Solar energy allows two types of benefits to SME’s: cost reduction, and emissions reduction.
Electricity cost problem: SME’s are categorized as commercial or industrial (C&I) users of energy, and hence pay high tariffs of around 7-12 Rs/kWh, depending on location in India. In fact these high tariffs have been rising steeply in recent years, as Discoms in India attempt to climb out of their historical losses. Additionally, SME’s typically suffer from unreliable energy supply, being sub-MW sanctioned loads. This means additional investment and expenses towards diesel power for backup, which costs 12-18 Rs / kWh, which is even costlier.
Solar options: For SME’s with their own unshaded rooftops, having captive solar is a good way to reduce their purchases of electricity from the grid or diesel consumption. In areas with very erratic electricity, or with evening-loads, it’s possible to go for storage-based solutions, which may also allow significant benefits over time. For certain SME’s it may make sense to tap into large MW solar power plants under captive or open access approaches. SunSource Energy provides all of these solutions.
Q: Solar energy development is localised does it throw up potential for job creation particularly in rural areas. Can you share some numbers
A: Yes. Solar power plants need minimal maintenance, but installation, operation, and maintenance does create localized jobs. Depending on location and size, five to ten rooftop plants can keep a low skilled worker busy just for routine cleaning. As rooftop projects increase in number, such jobs will increase in number. For larger MW-plants, which are often built in rural areas, there is a need for both skilled and unskilled positions such as guards, cleaners, resident at the plant site itself, as well as offsite. A good number, again depending on size and location would be 3-5 jobs per MW. These often result in rural job creation, sometimes surprisingly high quality jobs.
Q: Is skill development coming in the way of tapping solar energy and its employment potential and what is the way forward.
A: We in the industry definitely see a big need for more skilled and trained people, if India’s 100 GW goal is to be reached. If you think about it, the industry had built a cumulative 4 GW until last year, reflecting the available pool of workers. Now, as soon as you compare that number to the 100 GW or 150 GW goal, you can see the dramatic need for skilled personnel.
The Government, to its credit seems aware of the gap. Surya Mitra, and other government initiatives are a good start and seem to be good first steps towards solving the problem. Huge scale up is needed.
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Q: What is the way forward to utilize SME in the manufacture of Solar energy equipment
A: SME’s are already contributing to manufacturing for the solar sector. There are dozens of solar panel manufacturers, though with uneven quality, who are coming up to meet demand. In addition, SME’s are also starting to manufacture the Balance of Plant equipment, from batteries, fabricated support structures, to nuts and bolts, cables and connectors, and other various items that go into building solar power plants.
Q: Is the government on the right track to fulfil twin objectives of solar energy development and job creation in rural areas. If not what are the short comings?
A: Government pronouncements and initiatives reflect a deep awareness of the problems, and a resolve to solve these problems. While there does seem to be a bias towards mobilizing very large corporates rather than SME’s towards reaching solar goals, the Government’s preference is quite understandable, in light of the magnitude of the challenges, and the amounts of capital to be deployed. However, we are hopeful, and believe that time will reveal a positive set of outcomes for the twin objectives.
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