Solar rooftop power cheaper than grid power now: Are there implications for the oil & gas industry?
For oil & gas suppliers, it is always necessary to keep the ear to the ground. 8Latest data shows that rooftop solar energy is now cheaper than commercial and industrial grid tariffs in all major states in India. This is a result of rising tariffs of coal based power and falling solar costs. 8Equipment cost declines in just the last year have also brought socket parity for high consumption residential customers having system sizes greater than 5KW in at least 10 states. 8Retail electricity tariffs will continue to rise at least in the short term due to regulator driven tariff hikes to help ailing electricity distribution utilities recover their cost of electric supply. 8Costs of solar electricity are further expected to come down globally because of efficiency gains in technology and manufacturing. 8For commercial customers, payback periods are already an average 5-7 years. A drop in equipment cost and rising grid tariffs will further lower the payback periods. 8India currently has among the lowest solar rooftop rates in the world 8Solar is also making headway in replacing diesel generation sets in some segments of the economy and this is going to impact diesel consumption Click on Reports to find out more