Residential Rooftop Solar To Cost Rs 31,200/Kw In Andhra Pradesh after Subsidy

The Andhra Pradesh Eastern Power Distribution Corporation Limited (APEPDCL) has discovered the lowest bid of Rs. 50,000/kW for up to 1 kW of residential rooftop solar systems. That means, after central subsidies, it would cost only Rs. 31,200 to consumers. Interestingly, for larger 100Kw to 500Kw sizes, the discovered price is Rs 36,000/Kw , though not eligible for any subsidies.  

APEPDCL floated a tender for selecting agencies to install the residential rooftop solar systems under the capital expenditure (CAPEX) model and selected the 17 lowest bidders. Out of the 17 bidders, 14 are assigned to install systems with capacities from 1 kW to 10 kW. Two agencies are selected to install systems of 2 kW to 500 kW, and one agency to install 10 kW to 500 kW systems.

The lowest quoted project cost for a rooftop solar system up to 1 kW was Rs. 50,000/kW, Rs. 47,000/kW for a 1 kW to 2 kW system, for a 2 kW to 3 kW system it was Rs.45,000/kW, and for a 3 kW to 10 kW system lowest cost was Rs. 44,000/kW. 

Consequently, for the systems of 10 kW to 100 kW, the lowest project cost quoted was Rs. 38,000/kW and Rs. 36,000/kW for systems of 100 kW to 500 kW.

As per the MNRE’s (Ministry of New and Renewable Energy) order for Approved List of Models and Manufacturers (ALMM), vendors with domestically manufactured solar panels who are listed under ALMM will be sanctioned with the central financial assistance (CFA) for the systems. 

The CFA of 40% on the benchmark cost will be provided for systems up to 3 kW.  Thus, for a 3 kW system, the final price will be around Rs 90,000 after subsidies. Of course, discoms might yet add on costs like meter charges for solar bi-directional meters, etc, but that will still keep costs to a very reasonable level.

For systems above 3 kW and up to 10 kW, a CFA of 40% will be applicable for only the first 3 kW capacity, and for others, it will be 20%. For group housing societies and residential welfare associations, the CFA will be restricted to 20% for common facilities up to 500 kW.  Thus, with net metering for a household that is paying say, Rs 2,500 per month, payback on a 3 KW system could come as early as 4 years. On a system with a warranty of 5 years, and notional life of 25 years. 

According to APEPDCL, a subsidy of Rs. 18,800 would be provided for a 1 kW rooftop solar system considering a 40% subsidy on MNRE’s benchmark cost of Rs. 47,000. Conclusively, after subtracting the subsidy amount from the cost of a 1 kW rooftop system, the cost for the consumer would be Rs. 31,200. 

Recently last week, APEPDCL announced that residential customers interested in installing grid-connected rooftop solar (RTS) plants in Andhra Pradesh would now be entitled to receive central financial assistance (CFA).

Back in 2019, APEPDCL has filed a petition with the Andhra Pradesh Electricity Regulatory Commission (APERC) seeking approval for the implementation of a discom driven solar rooftop program devised under the technical assistance titled ‘Power Sector Reform Program’ supported by the UK’s Department for International Development (DFID).