How Revised MERC Tariff Is Going To Affect The Consumers

The coronavirus pandemic has not only slowed down everyday life but has also wreaked havoc on India’s economy as businesses and trades all across the nation are floundering to stay afloat, and the average middle-class individuals are struggling to make ends meet in the absence of functioning work sources. In this bleak scenario, the recent revision of the Maharashtra Electricity Regulatory Commission (MERC) tariff has slashed the price for power distribution companies in an attempt to boost the state’s economy but is it enough? Or is it time to switch to more renewable sources of energy like solar street lights, solar inverters, etc.

Having been applied since April 1, the MERC rates have been reduced for the first time in 10-15 years. 

The Impact of the Revision on Consumers

The tariff has been reduced by 5-7% for domestic consumers, while industrial and commercial consumers now avail the benefit of the prices being reduced by 10-12%. But compared to these high benefits, the tariff has been barely reduced for agriculture consumers – farmers received only a 1% reduction in electricity costs.

These revisions are for a period of five years and will allow power distribution companies to supply to consumers at a much lower rate. 

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Impact Of Pandemic COVID – 19 On Solar Business

There is no section of human life that hasn’t been affected by the novel coronavirus pandemic. This includes the solar energy business too, which has taken a hit as well, but unlike other sectors, not only has it not been too severely affected but is also expected to recover a lot quicker!

Many global industry analysts had predicted that there would be a shortage of solar wafers, module glass, and other components in China, which would, in turn, lead to a rise in solar component prices, but thankfully, no such escalation has been observed, though there have been disruptions in the supply chain. 

When it comes to the solar energy business, China dominates the PV modules market with India as one of its biggest buyers. In fact, Chinese firms provide 80% of the solar cells and modules used in India as they make up for 40-60% of the total cost of a solar energy project. Luckily, nearly 80% of the solar industry in China has already recovered and whatever supply chain disruptions have taken place are expected to be fully restored in some time. 

When it comes to the solar energy business, China dominates the PV modules market with India as one of its biggest buyers. In fact, Chinese firms provide 80% of the solar cells and modules used in India as they make up for 40-60% of the total cost of a solar energy project. Luckily, nearly 80% of the solar industry in China has already recovered and whatever supply chain disruptions have taken place are expected to be fully restored in some time. 

As the curve of the pandemic has almost flattened in China, employees are gradually resuming work as restrictions are being eased, which means that export of many solar energy-related materials like PV panels, aluminium frames, used in the creation of solar grid system, and other key components like solar inverters, module mounts, etc. has now become possible. 

Does The Current Pandemic Situation Will Impact the Renewable Energy Sector?

The novel coronavirus 2019 has reset the global economy while the impact of the virus on the energy sector is no different. The slowdown and the lockdown have led to a remarkable decline in the demand for energy globally. While the after-effects of the pandemic are still being played out; there will be some impact on the renewable energy sector. 

The recent situation presents both opportunities and threats to the renewable energy sector. However, since the total energy generated using renewable sources is via an off-grid solar system or wind energy, the impact on this sector shall be rather low. Due to the slowdown in demand of renewable resources during this short-term, the number of new renewable energy projects may experience a slight downfall. In addition, the ongoing projects that have already been announced shall experience some delay altogether that will turn the demand of renewable energy at a low rate. 

-In the medium term, however, the demand for renewable energy is again expected to again reach the pre-pandemic situation and that shall lead to opportunities. The disruption of the supply chain has created a shortage of equipment like an on-grid solar system, panels for renewable energy providers in India. While this is negative for the short term, over the medium term, it has led to an excellent opportunity for the local manufacturers of equipment for renewable energy. Indigenous companies manufacturing equipment for renewable energy shall now be able to gain a foothold in this market.  An increase in the local supply of equipment shall give a boost to renewable energy production in India and other emerging economies.

The reset of the energy demand caused by a pandemic is a once in a lifetime opportunity for countries like India to pursue clean-energy more aggressively. The pandemic has made governments globally realize the importance of public health on the accelerating switch from the polluting fossil fuel economy to the renewable energy economy. The governments shall focus on providing incentives, subsidies and stimulus packages on the renewable sector to move away from the adverse effects of fossil fuels. 

For India, specifically, over the medium term, this pandemic offers tremendous opportunities. Since the oil prices shall be much lower, it will free-up the government’s resources w.r.t foreign reserves. The government may use these resources to give a boost to renewable energy, as a means to focus on long-term public health. These incentives and subsidies would help develop a complete ecosystem of renewable energy right from equipment manufacturers to service providers. Globally, the pandemic has made people realize to de-risk their entire supply chain from a single country. This shall provide new opportunities for the renewable energy sector in India to export their products and service globally in the post-pandemic world. 

All the after-effects of the pandemic would be realized once the situation is restored to normal post the pandemic. However, the short-term is going to be extremely difficult for the renewable energy sector globally. Reduction in overall energy demand, supply chain disruptions, unavailability of inspectors, servicemen and installers shall lead to short term adversity for the entire sector. However, the pandemic has created a tremendous opportunity for the governments over the globe to come together and focus on public health by giving a boost to global renewable energy demand through incentives and subsidies. For India, over the medium term, as a means to de-risk the supply chain, the pandemic shall open opportunities for renewable energy equipment manufacturers. 

Power Cuts: Are Solar Panels Efficient Enough To Handle Them?

Solar energy is the best alternative energy in our homes. It is efficient, clean as well as abundant, and it is not used up. However, its only drawback is the reduction of efficiency during rainy and cloudy days. Because of its increased demand, there are a lot of Doing It Yourself at-home solar energy systems in the market. This makes it easy for you to generate energy to power your home at your property.

However, before you can decide on buying the product, you should do some initial evaluations. Home solar energy systems will require investments, and you will wish to recoup your investment within an affordable time frame. During the solar panel installation period, you do not need to move your family out to another house, and this is likely to cause you extra costs required for dismantling and rebuilding the system.

Therefore when it comes to installing the solar panel, there are some mysteries involved. Like other things, the easiest method will arise from doing some research to get the best recommendations tools as well as products. Then after getting that, you can get down into putting down your effort.

Solar panels have some problematic tasks in accomplishing and installing the panels around your home. However, the solar panels are great to help in reducing the monthly electricity expenses significantly. To some extent they can eliminate the costs wholly based on the size of the solar panel selected and the amount of power you require and use at home.

Today, everybody who does not live under rocks or in a cave understands that solar panel has overtaken the leaps as well as bounds for many months. On the contrary, the fact remains this has been happening for the longest time possible. This means that the solar, panel still plays a significant role in increasing energy in the future and reducing the power consumption expenses.

The costs of remaining dependent fossil fuels instead of that of renewable had started to increase. However, sun and wind still can provide the ever-increasing portion of day to day energy for the consumers, especially those who are vulnerable to electricity.

Solar panel, regardless of one or dozens, they reduce the cost of electricity significantly. It, however, does not matter whether the solar panels are manufactured commercially or made for homeowner use.

With the availability of many solar panels suppliers, and the decreasing of the prices of the solar panel. Solar power has started to make sense each day. It is not only the electricity prices that should drive you to the use of solar panels. It is with no doubt that lowering your monthly electricity bill is a great attraction to more benefits that accrue. This is because of the ongoing deployment and use of solar power.

Creating your solar panels is very easy, and it is during this time that you will realize the best cost-saving strategy. It is not only the costs of solar panels installation that are low compared to that of the commercial model, but you can also install one as soon as possible while adding others at the time when your family budget allows you to do so. Once your first panel starts working, you will start seeing the saving that it brings to you through reduced electricity bills

Finally, installing a solar panel at your home is the best way of reducing the monthly electricity bill expenses. Therefore it is worth your money. Although it may be hard to know which one is suitable for your home, you should consult experts to ensure you select the best solar panel since the set up will last for many years.