Is the New Kerala Solar Energy Policy Unfeasible?

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Is the New Kerala Solar Energy Policy Unfeasible?

Synopsis

A protest against the Kerala solar energy policy is underway, with investors calling it impractical. This could jeopardize the state's energy goals. Will the voices of the solar sector be heard in time?

Key Takeaways

  • Investors criticize the draft solar energy policy as impractical.
  • The proposed policy could hinder Kerala's energy goals.
  • Only 1.5% of consumers currently use solar energy.
  • A statewide shutdown, 'Solar Bandh', is planned.
  • Public hearings are demanded before policy implementation.

Thiruvananthapuram, July 2 (IANS) A group of solar sector investors has labeled the recently released draft solar energy policy by the Kerala State Electricity Regulatory Commission as "impractical" and likely to have detrimental effects on the state's power industry.

This criticism arises as the state strives for energy self-sufficiency and aims for net-zero carbon goals; the recommendations in the draft policy could undermine these advancements, according to the Masters Association, a Ministry-approved body representing solar traders. The association noted that these changes could also jeopardize central initiatives like the PM Surya Ghar: Mufti Bijli Yojana.

The protest is particularly significant as only about 1.5 percent of the Kerala State Electricity Board’s 1.41 crore consumers currently utilize solar installations. The Association posits that any restrictive measures should only be considered once at least 10 percent of consumers adopt solar energy.

To express their dissent against the draft policy, the Association has planned a "Solar Bandh" (shutdown) on Thursday, during which all companies involved in solar plant construction, marketing, installation, and servicing within Kerala will suspend operations.

To draw attention to their demands, protesters will conduct a march and hold a dharna (sit-in) outside the Electricity Regulatory Commission office.

The association insists that public hearings should be held in each constituency before the policy is enacted, involving public representatives. They also advocate for an extension of the return on investment period for solar projects, support for a cohesive national solar policy like Pradhan Mantri Surya Ghar, and the continuation of net metering policies for installations up to 1000 kilowatts without alterations.

Furthermore, they demand that, considering Kerala's distinct climate, banking and settlement options be mandated.

The draft policy contains several suggestions deemed impractical, such as limiting net metering to systems below 3 kilowatts, requiring 30 percent battery storage for systems exceeding 5 kilowatts, imposing an additional Re 1 per unit as a grid support charge, and discontinuing the rollover of excess electricity to the following month.

Another significant concern is the proposed strict limitations on transformer capacity, with warnings that if such measures are put into effect, electricity costs will escalate, adversely impacting both the public and industrial sectors.

Point of View

The concerns raised by the solar industry in Kerala highlight a critical junction in the renewable energy transition. While policies must evolve, it is essential that they do not hinder the growth of sustainable energy solutions. Balancing regulation with innovation is key to achieving national energy goals.
NationPress
09/09/2025

Frequently Asked Questions

What is the main concern regarding the new solar energy policy?
The primary concern is that the policy is deemed impractical and could hinder Kerala's progress towards energy self-sufficiency and net-zero carbon goals.
What actions are being taken by the solar sector in response?
The solar sector is organizing a statewide shutdown, termed 'Solar Bandh', to protest the draft policy. They will also hold a march and sit-in outside the Electricity Regulatory Commission office.
What recommendations does the Association have for the policy?
The Association recommends conducting public hearings, extending the return on investment period for solar projects, and ensuring that net metering policies remain unchanged.
What are the implications of the proposed restrictions in the draft policy?
Proposed restrictions, such as limiting net metering and imposing new charges, could lead to increased electricity costs and negatively impact both consumers and industries.
How does this protest reflect the broader national energy landscape?
This protest underscores the tension between regulatory frameworks and the need for innovation in the renewable energy sector, which is vital for meeting national energy targets.