Telangana solar program hindered by DCR policy

The Centre's ambitious mission to install rooftop solar plants in 10 million households across the country is hampered by the Domestic Content Requirement (DCR) policy, which is reportedly raising the cost of renewable energy equipment and forcing many people to abandon their plans to switch to solar.
The term "DCR solar PV modules" refers to solar panels in which both the solar cells and the modules are made in the nation, by the Ministry of New and Renewable Energy's Domestic Content Requirement Policy. The DCR policy requires that selected projects, particularly those related to subsidies and the CPSU (Central Public Sector Undertakings) plan, employ solar panels made locally.
The MNRE implemented this policy to promote local manufacturing and assist the "Make in India" campaign; nevertheless, analysts believe that the DCR will raise the cost of renewable energy equipment, resulting in a rise in the cost of renewable energy. Solar developers claim that despite fast growth and legislative measures, local suppliers are still unable to match market demand.

According to telangana Solar Energy Association President B ashok kumar Goud, the DCR policy raises the cost of generating renewable electricity by requiring developers to buy from local providers.
The "PM surya Ghar Muft Bijli Yojana" initiative aims to subsidize rooftop solar systems for approximately one crore homes in the country, with an estimated subsidy of Rs. 75,000 crores.
However, only local manufacturers that have been recognized as part of the Approved Models and Manufacturers list will be able to offer solar equipment for the plan.

The initiative offers a subsidy of 60% of the solar unit cost for systems up to 2 kW capacity and 40% of the extra system cost for systems between 2 and 3 kW capacity.
The subsidy is limited to a maximum capacity of 3 kW. At current benchmark pricing, this translates to a Rs. 30,000 subsidy for a 1 KW system, Rs. 60,000 for a 2 KW system, and Rs. 78,000 for a 3 KW system or above. Although residents in the state are eager to convert to solar power, the acceptance of rooftop solar systems has been low, owing mostly to the expensive cost of installation-approximately Rs. 2 lakhs for a 3-KW system and Rs. 5 lakhs or more for a 6-KW system, according to ashok kumar Goud.

“The solar installation program was not catching up primarily due to delay in uploading of applications on the national portal and the delay in issuing technical feasibility approval by the Discoms in providing permissions. A large number of people are complaining about the attitude of the Discom officials. They are taking months together to clear an application. This is causing a lot of hardship to people. It is discouraging people to shift to solar,” he added.

Though the Union Ministry of Power issued a gazette notification abolishing Discoms' ability to offer technical clearance for production capacities of up to 10 kWh, the State government has yet to implement it in the State, causing delays in obtaining permissions.
He said that the gujarat electricity Regulatory Commission has already exempted rooftop systems with a capacity of up to 10 kw from undergoing technical feasibility studies and that TGERC should also enable it to accelerate the installation of solar rooftop panels.
"Until the Discoms officials change their attitude, the solar rooftop program will not pick up in the State," ashok kumar stated.


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