Suryodaya Yojana

 

 

What is this Yojana ?

PM Suryodaya Yojana was announced By PM Shri Modi on 22 Jan 2024 . Under this scheme , Central Government will undertake installation of 1 crore ( 10 million ) Roof Top Solar ( RTS ) plants on the roofs of middle / poor households , within one year . Altogether there are 300 million families in India

Idea is to provide FREE electric power to these families and possibly enable them to earn some income by selling their surplus solar power to DISCOMS

 

Which agency has been made the Nodal Agency for this Scheme ?

Rural Electrification Corporation ( REC ) has been tasked to implement this scheme . For this , REC has ear-marked Rs 125,000 crore and decided to rope in 8 CPSU ( Central Public Sector Undertakings  ) to distribute these funds ( by way of loans ? )

Detail procedures of the scheme are under preparation by Ministry of New and Renewable Energy ( MNRE ) headed by Shri R K Singh

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What was its need ?

 

Against a target of 40 GW to be achieved by the end of 2022, only 5.87 GW of rooftop solar projects was installed, which is less than 15% of the target.

 

Currently grid-connected solar rooftop capacity stands at 11.08 GW out of the total solar capacity of 72.31 GW, according to the ministry of new and renewable energy.

 

Under the government’s energy transition plans, solar power is expected make up 292 GW out of a total renewable capacity of 500 GW by 2030.

 

Today, less than 1% homes in India have solar,

 

What is the monthly electricity consumption for Middle / Poor families  ?

Middle Class families :

These comprise 30 % - 40 % ( of total of 300 million families ) and consume 150 – 250 Kwh / month

Poor Families :

These comprise 40 % - 50 % of total households and consume 50 – 100 Kwh / month 

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What are the obstacles to accelerating Roof Top Solar ( RTS ) ?

#  Lack of awareness among people about the benefits of Roof Top Solar ( RTS )

#  Unavailability of easy RTS finance / Central Govt Subsidies / State Govt Subsidies

 

#  Implications of Gross Metering / Net Metering Schemes

 

#  Apathy / Reluctance / Outright discouragements by DISCOMS ( due to loss of revenue )

 

#  High initial cost of RTS installations ( beyond reach of most users even after subsidy )

 

How can Govt overcome these obstacles ?

 

By incentivizing :

( A )  Consumers

         #  By giving 100 % subsidy . Totally FREE installation of 3 Kw Roof Top

             Solar

( B )  DISCOMS

         #  By fully compensating for loss of revenue + some incentive

( C )  Funding Agency ( REC )

         #   By transferring all Carbon Credits earned by 1 crore ( 10 million )

               installations  

 

How will such a COMPOSIT scheme work out ?

Look at the following calculations :

Parameter	Roof Top Solar Installations
Purpose	Provide free electric power to Middle / Poor class families
Agency tasked	REC-CPSU - DISCOMS
Total Installations planned	10 million ( 1 crore )
Specifications	3 KW RTS plant
Ave cost / Unit ( Rs )	1.25 lakh ( assume mass purchase benefit )
Total Investment ( Rs Crore )	125,000
Units generated / month by RTS installation	360 Kwh
Units consumed / month
Ø For lighting, Fans, Fridge etc	80 Kwh
Amount of GHG emission reduction per installation	12,200 Kg
GHG reduction / month	12.2 tonnes/month x 10 million = 122 million tonnes / month
Multiplying by No of Installations	1464 million tonnes/year
No of Carbon credits earned per year by this reduction	120 million
Price of 1 credit ( assumed )	Rs 1,000 ( $ 10 )
Hence, amount that can be earned each year by selling these credits on Carbon Trading Exchange	120 million x $ 10 = $ 1200   million = Rs 9960000000 =   Rs 9960 crore
Pay Back Period in Years	12.6 years

 

Can your proposal be made more attractive to the Central Government ?

 

Certainly, in following way

#  Merge Suryodaya Yojana with National Efficient Cooking Programme  

    - announced by Shri R K Singh , MNRE ( through EESL ) are in the process of

      distributing 20 lakh ( 2 million ), 1.5 Kw Induction Electric Stoves

      ( I have no info re the target families or whether this will be FREE )

Under my proposal, this number to be raised to 1 crore ( 10 million ) AND those

eligible for free RTS , will also get a FREE electric stove

 No one else will get that FREE stove

 

How will this help ?

 

3 Kw RTS will generate 360 units / month .

Out of this , family will use only 80 units for lighting-Fans- Fridge etc, leaving 280 units / month, un-utilized

If this surplus power is fed back to DISCOM , it will earn :

Rs 3 / unit x 280 units = Rs 840 / month ( what Shri Modiji hinted to as “ earning extra income “ )

Let us consider alternate scenario as follows :

280 units / month = 9 units / day ( for 30 days )

Now electric stove is 1.5 Kw . If used for 4 hours/day , it will consume only 6 units/day ( 180 units/month )

So , the family will now feed into the GRID ( through Net Metering ), balance 100 units ( 280 – 180 for stove )

 

And earn Rs 300 / month ( from DISCOM @ Rs 3 / unit ) – instead of Rs 840 / month

 

BUT ,

Now that family will NOT need any LPG cylinder for cooking !

A unsubsidized LPG cylinder could cost Rs 900

A subsidized cylinder costs the poor family , Rs 600 ( after subsidy of Rs 300 / cylinder for 12 cylinders / year )

Hence , by using an Electric Stove ( coupled with 3 KW solar panel ), that family will give up Rs 300 subsidy ( DBT )

But , country as a whole , will need to reduce its LPG import bill by Rs 900 / month / each poor family

Multiply with 1 crore families . That works out to Rs 900 crore / month = Rs 10,800 crore / year  !

And all it takes to save this FOREIGN EXCHANGE is 1 crore Electric stoves , whose purchase price EESL can bring down from Rs 2,000 each to Rs 1,000 each , by MASS PURCHASE

( EESL had, earlier brought down the price of an LED lamp from Rs 360 each to Rs 60 each, through MASS PURCHASE )

In which case , total purchase cost ( investment ) could be > Rs 1,000 x 1 crore = Rs 1,000 crore !

Resulting in a approx. saving of Rs  11,000 crore !

 

 Now consider this :

#  Current number of poor families covered under UJWALA scheme  .. 9.6 Crore

#  Revised target for coverage ……………………………………………………………..10.35 crore  

 

If electric stoves were given to 10 crore UJWALA families , SAVING will be, Rs 1.1

LAKH*CRORE / year

 

Questions / Suggestions ( to MNRE officers ) :

Could switching over to “ Roof Top Solar Panel + Electric Stove “ from a “ LPG

cylinder + Gas Stove “ , entitle government to earn CARBON CREDITS ? If yes ,

how many credits for 10 crore electric stoves ? And at what price can these credits

 be SOLD on a Carbon Trading Exchange ?

An investment of Rs 1,000  ( in electric stove ) can be recovered in just 3 months

( @ Rs 300 / cylinder subsidy )

For offering this COMPOSIT and FREE scheme to UJWALA beneficiaries , make it a

condition that they will get their concerned DISCOM to install a Smart Meter in

their home

This IoT enabled meter will :

Ø  Link all the appliances / devices in the home with DISCOM

Ø  Manage Battery operations ( BMS ) for Electric Stove

Ø  Compute Carbon Credits earned daily ( Nos and Rupees ) and display it

The details can be viewed at :

Airtel is Smart : IntelliSmart  .. …………..23 Dec 2023

 

 

With regards,

Hemen Parekh

Create Your Own Digital Avatar   //  29 Jan 2024

 

Related Readings :

 

2024 ( 1 )

Energy Efficient Appliances ………………………………….20 Jan 2024

 

2023 ( 4  ) :

Green Credit Initiative at COP 28  .. ……………………18 Dec 2023

The Verdict : A is better than B .. …………………………23 Aug 2023

Here comes : DEEES of My Dream………………………..23 Aug 2023

Thank You , Vishal Kapoor ………………………. ………… 15 Aug 2023

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No Solar Cookers yet ? Clear as Daylight ?  .. ……..26 Apr 2023

 Extract :

Therefore, the proposed solar-powered cooker will be entitled to 51.48 carbon

credits per year.

Each Solar Cooker User will earn $ 514.8 / year by way of selling Carbon Credits . That is approx.. Rs 41,200 ( at $ 1 = Rs 80 )   The proposed Solar Cooker is targeted for use in all cities / towns, where households are currently served LPG cylinders / piped gas

Altogether, in India , there are 290 million households , which is the potential

market for Solar Cookers

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2021 ( 2 )

Welcome, Prepaid Smart Meters  ………………. ………25 Sept 2021

Carbon Finance through Carbon Credits ……………….12 Mar 2021

 

2018 ( 1 )

A Smart Move , Shri Singh !  …………………….. 07 June 2018

 

2017 ( 3 )

 A Pre-paid Electricity Meter ?  …………………. 18 May 2017

 Electrifying : Smartly  ……………………………….. 25 Sept 2017

 Smart Meter : No Pending Payments ?........ 08 Dec 2017