In March 2018, MYSUN commissioned a 231kW rooftop solar project for a Label Printing company based out in Gurgaon. Post commissioning, the owners of the company saw a dramatic reduction on their monthly electricity bills and estimated to save over 7 cores on their power expenditures throughout the 25 years of their solar journey. Installing this solar system proved so beneficial that the owners decided to expand their installed solar capacity by installing 119kW more. Now they stand to save more than 15 crore rupees with solar in this 25 year period.
With the above example, it is easy to access the viability of solar for any business in India. But other than this, what are the other specific reasons that signal towards the viability of solar for businesses based out in Punjab, which finds itself in close proximity of Gurgaon, Haryana? Let’s take a look at them down below:
1. Solar Energy Potential of Punjab
Punjab lies in the same geography as Haryana and experiences from 230 to 300 sunny days in a year. That gives enough sunny hours per year for businesses based out in the state to generate electricity from solar for all their power needs. The potential of solar in the state can also be understood from the solar installation target set by the state. As per a renewable energy policy draft proposed by the government of Punjab in October 2019, the state is eyeing at installing a total of 3000 MW of solar power projects by the year 2030.
You can run the MYSUN Solar Calculator now and check the solar potential of your business in Punjab today.
2. Increase in of Solar Energy Installation Capacity in Punjab
The solar energy installation in the state of Punjab has been at a consistent rise across sectors since 2012. As per this tracker, the state has witnessed over a 100x growth in the installed capacity of rooftop solar systems; from zero in 2010 to 136.4 MW till 2019. Given that solar systems require sizable investment and that the cost of going solar was way higher ten years ago than what it is today, this growth in capacity demonstrates the acceptance of solar by the consumers in the state and its benefits being experienced by them.
Rooftop Solar Energy Commissioned Capacity in Punjab
3. Favourable Solar Policy of the State
Like most Indian states, Punjab has a very favourable solar policy for its commercial and industrial power consumers. Punjab’s Solar Policy qualifies its commercial and industrial consumers who go solar, to avail 40% accelerated depreciation on the solar system cost. The policy also allows custom and excise duty concession on solar equipment and a 10 year tax holiday on solar projects. The policy gives an avenue of a solar loan of up to INR 15 Crore for renewable energy projects under the priority sector lending. With the state's net-metering policy, businesses can also sell the excess generated electricity to the DISCOM as per the specific tariff rate defined in the policy.
4. Frequently Increasing Electricity Tariff in Punjab
Electricity tariffs follow the upward trend and it has been increasing in Punjab as well. As per media reports of January 2020, the Punjab State Power Corporation Limited has filed a petition with the state power regulator seeking a 14% hike in electricity tariff for consumers in the state. The hike is likely to be announced in the upcoming month of April 2020. A similar hike of approx. 2.15% was imposed just last year affecting consumers across categories. Tariff increases, even by a minimum percentage, might not affect domestic consumers by much, but owing to the high power consumption of commercial and industrial categories, they increase electricity expenditures by lakhs every year. Thus, impacting the bottom line as well. Going solar freezes such tariffs hikes, giving business owners some stability in business expenses.
5. Positive Growth Potential for Businesses in Punjab
As per a report from the Indian Brand Equity Foundation, Punjab has the easiest procedures to set up a business. It is a key hub for textile-based industries including yarn, readymade garments and hosiery. Its capital city Chandigarh has evolved to be a top spot for the booming IT and Education industries in the state and its cities like Mohali, Ambala, Panchkula, etc has become a fertile place for SMEs and MSMEs of every category. With the state's annual GDP of around 6%, the state has a lot to offer as an opportunity for business enterprises. And as businesses grow in the state, power will become a crucial expenditure. With solar, businesses can save up to 80% of this expenditure and use those savings to speed up their growth further.
Why Go Solar With MYSUN in Punjab?
MYSUN is the largest online rooftop solar platform and the most trusted solar partner for businesses in India. It has proven excellence in designing, installing and maintaining solar projects of SMEs, MSMEs and large corporates across India. With the focus on the end-to-end solar solution and world-class engineering, MYSUN Offers a one-stop solution for your rooftop solar needs in Punjab. Through MYSUN Solar Financing, the company is making solar easy for every business under the sun. MYSUN’s local presence in Punjab, with an office in Chandigarh, makes it the perfect solar partner for your business in the state.
Get in touch with MYSUN Solar Advisors today. Call +91 8448380218 or write at [email protected]