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Rooftop solar's promise hits reality: Who pays for night-time power?

08 Dec 2025
2 min

Rooftop Solar Power: Opportunities and Challenges

The concept of rooftop solar energy is gaining traction as a practical solution for generating electricity. The modular nature of solar panels allows them to be installed on any available roof, transforming it into a power plant. Despite the apparent advantages and governmental support, rooftop solar has not yet achieved a transformative scale.

Challenges in Integration with Distribution Systems

  • Intermittency of Solar Power: Solar energy is available only when the sun is shining, necessitating storage or backup systems.
  • Backup Systems:
    • Excess energy generated during the day can be stored in batteries or exported to the grid.
    • Batteries are still costly, making grid export the more feasible option.
  • Financial Burden on Discoms: Using Kerala as a case study: 
    • Kerala has installed 1.5 gw of rooftop systems, covering 2% of its 10 million households.
    • The Kerala State Electricity Board (KSEB) reported unsustainable financial losses due to purchasing low-cost daytime electricity and selling it back at higher nighttime rates.

Policy Adjustments and Their Impact

  • Kerala’s Regulatory Response:
    • The Kerala State Electricity Regulatory Commission (KSERC) proposed mandatory battery storage for new systems.
    • Incentives through a gross metering mechanism were introduced, offering higher tariffs during peak hours.
    • Notification has been paused due to a legal stay by the Kerala High Court.

International Perspective: The Case of Pakistan

  • Policy Shifts:
    • Pakistan eliminated import duties on Chinese solar panels and lithium batteries.
    • Projected to install 25 gw of solar by 2024, meeting a significant portion of its electricity demand by 2030.
  • Resulting Challenges:
    • The transition has increased costs for distribution companies, triggering policy reviews.

Conclusion

The core challenge is how new energy systems can effectively displace or integrate with existing fossil fuel-based grids. This transition is crucial to observe for sustainable energy futures.

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