Can Digital Solar Project Make Rooftop Solar More Accessible?

Explainer: Can Digital Solar Project Make Rooftop Solar More Accessible?

In 2023-24, India’s installed Rooftop Solar (RTS) capacity increased by 2.99 GW, marking the highest annual growth to date. According to the latest data from the Ministry of New and Renewable Energy (MNRE) India’s total installed rooftop solar capacity has reached 13.40 GW by the end of July 2024. Following the launch of the PM Surya Ghar Muft Bijli Yojana, the government anticipates an additional boost of 30 GW of new rooftop solar capacity over the next few years. However, access to rooftops for solar installation has emerged as a significant challenge, particularly in urban areas.

After the limited success from the standalone residential rooftop solar against higher expectations, several new innovative ways like community solar, virtual net metering arrangements and others have been tested in selected cases and seen as new alternatives to counter the inherent challenges of the sector.

In a similar experiment, an Indian startup, SundayGrids has now tried its hands to offer solution to enhance the accessibility of rooftop solar. SundayGrids’ digital solar platform enables users to reserve solar capacity from community solar projects to offset their power bills. According to the company, “Digital Solar is a service that allows residential individuals and groups to reserve solar capacity from commercial-scale, pay-for-use solar projects to exchange power for bill credits. This system enables users to apply these credits toward reducing their electricity bills.” Let us explain how the system works.

How does the model work?

The model is straightforward. Residential users interested in solar energy invest in solar panels by reserving their desired capacity in a commercial project. The commercial user generates and consumes the power, with the revenue generated being credited to the residential investor as a discount on their electricity bill. This system allows individuals to reduce their power bills by applying the earned credits.

Where are these digital solar capacities installed?

Digital Solar Projects can be installed in any location where net metering and RESCO projects are permitted. Currently, the startup operates in Mumbai and Bangalore. The company notes that the system does not require any additional approvals from DISCOMs.

How can the generated credits be used?

The credits generated can be used to pay electricity bills. The process is similar to making a UPI payment, and these credits can be applied to multiple bills or even on behalf of others.

According to the startup’s website, each unit of electricity from this project generates a ₹5.2 discount on an individual’s power bill. Sunday Grids has been backed by online broker Zerodha’s Rainmatter Foundation.

This development comes at a time when several states like Delhi and Maharashtra have attempted to bring in the regime of virtual net meters where the people living in multi storeyed buildings and apartments. This is to ensure that those power consumers who are keen to use green power and do not have space to host rooftop solar can make use of this arrangement. Under the virtual  net metering arrangement, a set of people can invest and setup solar projects in areas not in their campus but use the same through this arrangement.