Dedicated financing support required for scaling up rooftop solar in MSME sector in India : Report
New Delhi, Apr 4 (KNN) Scaling up rooftop solar in Micro, Small and Medium Enterprises (MSME) sector in India requires addressing issues related to lack of low cost financing, inadequate level of awareness and lack of rooftop aggregation models, according to a new report from the Climate Investment Funds (CIF) and Deloitte Touche Tohmatsu India LLP.
The report ‘Scaling up rooftop solar in SME sector in India’ evaluates key issues based on the primary survey done across 150 MSMEs in six industrial clusters (rubber and plastic; pharmaceuticals; auto; paper; food and beverage; textiles) in India.
A well-conceived walk through survey depicted the willingness towards adoption of rooftop solar applications but strengthening an enabling ecosystem shall be critical for for its proliferation, said Tushar Sud, Partner, Deloitte in a release.
Energy Specialist from CIF, Abhishek Bhaskar said “Limited access to finance, lack of awareness and escalating energy expenses are impacting the long-term profitability, competitiveness, and sustainability of the sector.”
However, it presents great opportunity, and a multi-pronged approach involving supportive regulations, risk-bearing financing, and awareness building are needed to demonstrate viability and help scale up rooftop solar in the sector, he added.
Recommending possible solutions for triggering rooftop solar growth in MSME sector in India, the report suggested a dedicated aggregation vehicle would support implementation of rooftop solar projects across target MSME clusters.
Regulatory changes for adoption of group and virtual net metering could assist in implementing aggregation models in the MSME clusters and overcoming issues related to scale, diverse customer profile, and financing to a large extent, it added.
Supporting dedicated MSME based portfolios within existing/new lines of concessional credit shall support development rooftop solar projects in MSME sector, another suggestion according to the report.
Creating awareness and capacity building through dedicated initiatives to bridge knowledge gaps support the support adoption of rooftop solar in MSME sector, report recommended.