Rooftop solar energy new sector for that extra income

Harness solar energy on your rooftops and sell the power generated to the Energy department at Rs 9.56 per unit. If you have a commercial or an industrial installation, you not only enjoy a substantive tax rebate, your solar earnings will also not be taxed.

Already 20 consumers in Bengaluru city are benefiting from the scheme and around 300 more are waiting for their applications to be approved.

The department, which is promoting alternative sources of energy, recently launched the
Rooftop Photovoltaic system, which entails installation of solar panels on rooftops by consumers and harnessing energy for self consumption and net metering.

The scheme is slowly gaining popularity, with domestic, industrial, commercial and government installations applying under the same.

While the Karnataka State Cricket Association (KSCA) has commissioned a 400-kw solar panel atop Chinnaswamy stadium (highest capacity installed under the scheme), four government installations have so far signed up with Bescom. They are National Institute of Advanced Sciences, Bescom, Panchayat Office, Chitradurga, and KPTCL. Energy Minister D K Shivakumar too wants to sell power to Bescom. He has registered under the scheme in his wife’s name, and installed a 18-kw unit atop his residence in Sadashivanagar.

L Lakshmipathy, Deputy General Manager, Bescom, said that November onwards, his office has received 322 applications, of which 215 have registered, 161 have been approved. Projects pertaining to a total of 20 applications have been commissioned (265 KW).

Bescom will remit the money for the power purchased directly to the bank accounts of these consumers. He said that once Chinnaswamy stadium starts injecting power to the grid, Bescom will have to pay KSCA close to Rs 20,000 for the purchase of power, per day. That is, if all 400 kw is evacuated.

He said that the Ministry of Renewable Energy is extending incentives, to encourage more consumers to enrol under the scheme.

For instance, those installations registered under the Companies Act will be eligible to get 30 per cent tax rebate under Section 32 of the IT Act. The same holds good for industries. These installations will also get 100 per cent waiver of tax for the earnings.
However, there are no such benefits for individual or domestic consumers. Lakshmipathy said that Bescom has been receiving several representations from individuals who are willing to enrol under the scheme, only if they too are given tax benefits.

Further, those registering under the scheme in the next three years will get to sell power to the Escoms at Rs 9.56 for the next 25 years. Those registering after three years will get lesser rate for the power sold.

However, the flip side to the scheme is that consumers will end up bearing the brunt of the expenditure incurred by the Escoms while purchasing solar power, with the energy supply companies filing for tariff revisions every year.