Government Policies on Solar Pumps. Presented by Broja Gopal Paul

Transcription

1 Government Policies on Solar Pumps Presented by Broja Gopal Paul

2 Onergizing Rural India ISO certified social enterprise (estd. in 2009) providing decentralized energy solutions to rural households and institutions in East India SwitchON - ONergy s focus is bringing energy access by developing a unique last mile energy distribution and service infrastructure Impacted over 200,000 operating a network of 12 Renewable Energy Centres in East India Developing an ecosystem by providing last mile access, promoting a complete range of customised solar solutions and facilitating consumer finance

3 Experience in promoting Solar Irrigation Promoting both DC and AC pumps Irrigation Projects supported by NABARD and GIZ Areas growing fruits and veg (horticulture) Water requirement atleast 6 months in a year, 4-5 hrs a day Existing diesel pump & operators Payback period 3 to 5 years

4 Value Proposition An integrated Solution Supply Chain Cold Storage Farmer Producer Organization Training & Research Solar Irrigation Sustainable Agriculture

5 Models Individual Can be afforded by rich farmers, groups Community Based Operating solar pump as a service Local entrepreneur/ group operating Onergy charge Rs. 70/hour from farmers for supplying water Government funded

6 Policies and Schemes of the Government NABARD scheme subsidy + financing Capital subsidy scheme Promotion of solar pumps through local government bodies & depts. Block office, panchayat office, water & sanitation dept. etc. Schemes funded by International bodies like World Bank Minor Irrigation Project, Water Resoruces Dept.

7 NABARD Scheme Target installation of 10,000 Solar Water Pumps AC and DC pumps Scheme implemented through banking network 40% subsidy (upon benchmark cost of Rs. 190/watt) 20% down payment 40% loan provided by bank Upto 10 year loan repayment Normal banking interest rate Eligible borrowers Individuals, NGOs, Groups, FPO

8 Flow Chart NABARD Scheme Supplier Customer Bank NABARD MNRE 1. Supplier connects customer to bank and submits subsidy+loan application 2. Bank forwards application to NABARD to avail 40% subsidy and refinance 3. NABARD receives subsidy from MNRE 4. Supplier installs system and gets full payment from the bank

9 Capital Subsidy Scheme Applicable in case where customer does not want bank loan or where bank financing is unavailable Approved channel partner of MNRE to apply for subsidy on behalf of customer by submitting Detailed Project Report System to be installed after approval received from MNRE Channel Partner Customer MNRE

10 Way Forward and Recommendations Advantages Active thrust by the government to promote solar pumps Subsidy makes system helps to make the payback on solar pump in 3 to 5 years Subsidy tied up with loan on solar pumps makes system more affordable

11 Way Forward and Recommendations Challenges Similar scheme present for solar lighting where ONergy has actively worked. However, timely release of subsidy is a major concern Bankers do not understand the economics for solar systems, often treat it as a consumption loan and fear loans will go bad Despite loan and subsidy, the scheme will largely be for rich farmers/groups. Marginal farmers will not be able to afford upfront 20% of solar pump cost Additional Collateral will be required as solar pump is not considered as collateral security This is part of one of the many schemes of the government. An active thrust from MNRE and Banks are often missing leading to gaps and slowdown.

12 Way Forward and Recommendations Recommendations Essential for banks to be given targets for financing solar pumps and solar loans to be given priority just like other priority sector loans like Kisan Credit Card (KCC) Bankers to be given training and capacity building and should understand the economics behind solar pumps and ability of farmers to repay from increase in income and savings Initial down payment should be reduced and reduction in additional collateral requirement to make the scheme more inclusive where even smaller farmers can afford Subsidy may not be ideal if bottlenecks remain in release of subsidy. Interest rate subvention may be considered which has been very successful towards financing of solar water heating systems or generation based incentive may also be considered Incentive for promoting service based delivery models such as entrepreneur/group operating pumps and supplying water to farmers

13 Thank You