Price Cut in Per Unit Solar Power a Discouraging Factor

“Coal and hydroelectricity have come cheaper, and it has become more viable for Chamundeshwari Electricity Supply Corporation (Cesc) to buy power from neighboring states than getting it from households,” Sales manager of Evervolt Solar Private Ltd Karunakaran A said.

After a steep decline in the prices offered for per unit of solar power generated by households and other institutions, it has compelled many in the city of Mysuru to think before adopting this mode of energy. The state-run power companies that were offering Rs 9.56 per unit of solar power only a few months ago are now paying Rs 3.27.

However, companies, educational institutions, and households have embraced solar power across the city. While many may not be able to register the profits they could when the tariff was higher, they still manage to save heavily on their electricity bills.

“Coal and hydroelectricity have come cheaper, and it has become more viable for Chamundeshwari Electricity Supply Corporation (Cesc) to buy power from neighboring states than getting it from households,” Sales manager of Evervolt Solar Private Ltd Karunakaran A said.

But, he did add that business establishments and educational institutions were among those reaping the benefits of installing solar panels. “Not only do they not have to pay a single rupee for electricity, but they are also managing to break even, and maybe even turn a small profit too,” Karunakaran added.

Power companies charge Rs 7 per unit but offer just Rs 3.27 to those generating solar energy. “In North India, people are getting Rs 5 per unit, which is not bad at all,” Karunakaran said.

Assistant professor in the electrical department of ATME College of Engineering Mohan M said that the institution that earlier had to cough up to Rs 80,000 per month for electricity was now earning Rs 15,000 by selling power to Cesc. “This was after we installed a 75kW solar power plant. Our operational cost has come down drastically as a result,” he said.

But, it has not been a happy ending for KB Kashinath, a poultry farmer, who installed a 73kW solar power generation system at his farm in Alanhalli near Bogadi. “I had it installed in February but the power cuts, coupled with the drop in the tariff have turned out to be a dampener. Because of the power cuts, the grid has been unable to absorb the electricity generated at my plant. Also, Cesc, which bought power at Rs 9.56 per unit reduced it to Rs 6.14 and it has been slashed further to Rs 3.56 now, which is not encouraging,” Kashinath said.

Nagashetty, a sales manager at Orbenergy, another energy company which reportedly enjoys a 25% share in the Mysuru market, said that there had been a marked decline in demand for solar power in the past few months. “While institutions and business establishments are opting for solar power, households do not appear to be interested. They are keen only on solar water heaters since the price being offered for power is not too encouraging,” Nagashetty said.