The South Gujarat Solar Association has demanded immediate intervention from the central and state governments regarding the serious challenges faced by the commercial and industrial (C&I) solar sector. The association states that impractical policies, limited availability of domestic solar cells, grid-related issues, and additional charges imposed by distribution companies (DISCOMs) are major obstacles to the progress of the solar energy sector.
According to the association, the current circumstances are not only affecting billions of rupees in private investments but could also hinder the country's renewable energy goals and the commitment to achieve net-zero emissions by 2070. Solar project developers and industrial consumers have warned that if solutions are not found in a timely manner, the process of transitioning industries to green energy will be severely impacted. The association noted that certain policy decisions have led to a sudden increase in the cost of solar projects by 25 to 30 percent, while due to grid management deficiencies, 60 to 70 percent of the solar energy produced at many locations is not being utilized.
This is causing significant financial losses for project operators and investors. Key issues raised by the solar industry include: 1. Supply chain issues related to DCR and ALCMM are causing significant increases in project costs due to mandatory domestic content (DCR) rules despite a lack of domestic production of high-efficiency solar cells.
2. Policy ambiguity and the threat of market monopolies; the association states that rules related to DCR and ALMM could provide unfair advantages to certain manufacturers amid limited domestic production capacity, affecting competition. 3.
Grid constraints and energy cuts; complaints have been made about GETCO and DISCOMs cutting solar energy production by 60 to 70 percent during peak hours, impacting the economic viability of projects. 4. Unannounced shutdowns on weekends; sudden grid shutdowns and technical disruptions on Saturdays and Sundays are affecting production.
The association has demanded the implementation of prior notice and compensation arrangements. 5. Additional charges on digital meter readings; despite online monitoring systems being available in solar plants, the industry has objected to charges of around ₹5,000 per meter under the guise of meter readings.
6. Complex and unclear billing systems; delays in issuing bills, errors in banking calculations, and unclear billing formats are increasing dissatisfaction among investors and consumers. 7.
Lack of adequate consultation with stakeholders; the association stated that there should be extensive discussions with developers, industry representatives, and consumers before making policy decisions. 8. The need for long-term policy stability; a demand has been made to maintain policy stability for at least five years, considering long-term investments in solar projects.
The South Gujarat Solar Association has requested the central and state governments to engage in dialogue with industry representatives, taking into account the practical challenges of the solar energy sector, and to implement necessary policy reforms. The association believes that timely action will not only restore investor confidence but also strengthen the country's clean energy and sustainable development goals.
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