Kumari Palany & Co

Chennais Rooftop Solar Adoption Faces Barriers

Posted on: 04/Dec/2024 10:22:04 AM

Despite accounting for nearly 25% of Tamil Nadu`s electricity consumption, Chennai contributes just 6% of the State`s rooftop solar capacity. A recent report by the C40 Cities Climate Leadership Group, in partnership with CSTEP and ASAR Social Impact Advisors, revealed that the city’s rooftop solar capacity stands at 31 MW, a small fraction of the State`s total 526 MW.

The report identifies key challenges, including the prevalence of multi-storey buildings, subsidized electricity tariffs, and the lack of a group net metering policy to share solar-generated power across multiple connections in a single building. Domestic consumers lead rooftop adoption at 49%, followed by commercial users at 30%.

Financial barriers also hinder adoption. Subsidized electricity tariffs and the requirement to use costlier domestic solar panels over imported ones reduce financial incentives for consumers. While a 2-kW rooftop solar system can save domestic consumers up to ₹3.41 lakh over its lifespan, network charges decrease savings by 15%, with payback periods extending to 8–9 years.

The report highlights institutional gaps, such as delays in net metering connections and non-compliance post-certification, as additional obstacles to scaling up rooftop solar in the city. It recommends addressing these barriers to boost Chennai`s solar adoption and promote sustainable energy.