Impact of Covid-19 on Rooftop Solar
COVID-19 has had a limited impact on the operational solar power projects while rooftop solar projects have been the most adversely affected
COVID-19 has had a limited impact on the operational wind and solar power projects as it depends on natural resources, i.e. wind and sunlight which has not been disrupted while at the other end of the spectrum rooftop solar projects are the most adversely affected in the renewable sector as most of them are small-sized companies, a new report by CARE Ratings has revealed.
For operational projects the spread of coronavirus has however impacted the availability of workforce; limited O&M staff is allowed to work on specific permissions. Also, some developers are facing issues with respect to raising timely monthly invoices for the sale of power. Nonetheless, the major issue with operational projects is that due to lower power demand and discoms are attempting to resort to RE curtail for rooftop projects, the report states that smaller rooftop companies may lack the financial firepower to absorb any loss or meet extra working capital requirements. The movement is restricted and people will not allow anyone to enter their houses or enter factories that are closed. Rooftop solar will be impacted more than grid-connected, which is under essential services. Post lockdown, the industry will have to deal with the aftermath as a new rooftop solar is not a necessity for consumers. With users dealing with several financial problems, rooftop solar will be the least priority on their list leading to a delay in the decisions regarding the installation of rooftop solar.
Due to lockdowns, the global supply chains are affected and a considerable slowdown in production was observed. Sectors such as the wind industry are experiencing logistical delays. The logistic delays are resulting in delays in new project development. Moreover, due to the decrease in prices of crude oil, the demand for renewable energy can decrease in the near future.
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