Will India Meet Revised Solar Rooftop Deadline by 2026?
July 2, 2024 ⚊ 1 Min read ⚊ Views 22 ⚊ BLOG
The existing subsidy structure for coal-fired electricity distorts the true energy cost and creates an uneven playing field for rooftop solar systems. Coal power plants receive subsidies that bring down the upfront cost for electricity generation companies. These subsidies often don’t reflect the full environmental and health costs of coal pollution. The subsidized generation cost translates to lower retail electricity prices for consumers. This makes rooftop solar, which has a higher upfront cost despite lower long-term running costs, seem less attractive financially. Lower retail electricity prices due to coal subsidies decrease the potential savings from generating your own solar power. This lengthens the payback period for rooftop solar investments, making them less appealing for cost-conscious consumers. In essence, coal subsidies artificially cheapen grid electricity, hindering the economic viability of rooftop solar and slowing down the transition to cleaner energy sources.
