Grid Parity of Residential Building Rooftop Solar PV in India
DOI:
https://doi.org/10.13052/spee1048-4236.39142Keywords:
Grid parity, rooftop solar PV, RETscreen and NPV.Abstract
Rooftop solar photovoltaic(PV) installation in India have increased in last
decade because of the flat 40 percent subsidy extended for rooftop solar
PV systems (3 kWp and below) by the Indian government under the solar
rooftop scheme. From the residential building owner’s perspective, solar PV
is competitive when it can produce electricity at a cost less than or equal
grid electricity price, a condition referred as “grid parity”. For assessing grid
parity of 3 kWp and 2 kWp residential solar PV system, 15 states capital
and 19 major cities were considered for the RET screen simulation by using
solar isolation, utility grid tariff, system cost and other economic parameters.
3 kWp and 2 kWp rooftop solar PV with and without subsidy scenarios
were considered for simulation using RETscreen software. We estimate that
without subsidy no state could achieve grid parity for 2kWp rooftop solar
PV plant. However with 3 kWp rooftop solar PV plant only 5 states could
achieve grid parity without subsidy and with government subsidy number of
states increased to 7, yet wide spread parity for residential rooftop solar PV is
still not achieved. We find that high installation costs, subsidized utility grid supply to low energy consumer and financing rates are major barriers to grid
parity
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