Harnessing Solar energy, Options for India

eing mobile, solar lanterns are more susceptible to loss. All this points to the advantages of the CCS
model where it will be fixed and the entrepreneur can ensure better performance
1.2.2. Solar Home Lighting Systems
1.2.2.1. Overview
SHLS consist of a solar PV panel, battery, charge controller and lighting system (lamps and fan).
Depending on the PV panel size this system can power a lighting system ranging from a single lamp
to several lamps and a fan or TV. This requires low ongoing maintenance except for a battery change
every three to five years. In spite of generous support from the government, so far only 580,000
SHLS have been installed. a However, it is unclear if this includes those installed by private players
without availing a government subsidy. One such example is Tata BP Solar, who have sold 150,000
SHLS to households in the states of Uttar Pradesh, Haryana and Karnataka in the year 2009–10. 16
Still, it all adds up to only a tiny fraction of the total potential. Taking into account solar radiation and
economics, about 98 million out of the 137 million rural households can afford and benefit from an
SHLS. 17 This system has significant advantage over solar lanterns, particularly in the case of the
ownership model: they can take a larger load and fixed panels lead to better performance (difficult
to get dragged into shade).
1.2.2.2. Institutional Mechanism and Policy
A critical environment for greater penetration of SHLS is the presence of a well-functioning market
of suppliers, maintenance service providers and, of course, competitive pricing. Capital subsidies
alone cannot ensure success of the installation. Indeed, experiences under the erstwhile Solar
Thermal Programme (solar water heaters) suggest that the gradual elimination of capital subsidy,
after ‘sufficient dissemination of solar devices, did not hamper their growth or popularity’. 18 Many
papers in the literature suggest that capital subsidies have been unsuccessful in the dissemination of
PV devices. Besides, there have been examples 19 of commercial models of dissemination of solar
systems in countries like China and Kenya, and, closer to home, by service providers like the Solar
Electric Light Company (SELCO) and Tata BP Solar. Table 11 describes a few models of
dissemination. The latter’s customers paid a down payment, and entered into a five-year loan
contract without any collateral with rural regional banks. The equal monthly installments (EMI)
work out to be between `200 and `500 for two to four light systems costing `13,000 to `25,000. 20
The normative cost of `300 per W p assumed for the computation of capital subsidy is too low for
smaller systems such as SHLS and solar lanterns, where the proportionate costs for balance of
systems and installation cost in remote regions will be higher. Hence, this inadvertently
disadvantages the poorest customers and supports low quality systems. The 20% down payment
requirement might be difficult for the poor. Moreover, the maximum loan amount of 50% of the
indicative costs makes purchasing of higher cost (and better quality) systems difficult.
a Data from respective development authorities of the cities.
Solar Photovoltaic Applications CSTEP | Page 65