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.
Do you agree or have another opinion, please share in comment box below.

Comments

  1. considering the case, is there any plan or suggestion for rooftop players.

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    Replies
    1. Satish JI, Your concern is right as per present scenario. It looks govt projects will keep going on at slower pace due to funds avalibilty, same is the case with private clients.

      Best of luck.

      Delete
  2. The scenario for roof top solar seems grim, though the govt sector projects may not be affected to that extent but the private sector will no longer have it on its priority list .Working capital will be a major issue and a fiscal impetus is required from the govt in terms of quick disbursal of very low interest loans e.g. electricity bill equated EMIs for 3- 5 years , immediate release of pending subsidies for solar rooftop projects.

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  3. It will effect all EPC player badly due to break in supply chain system. Till the time this chain not start all EPC player are in dilam and constraint to re flag all there projects. Most of the manufacturer are dependent on Chaina market in this field for raw materials which is not sure when it will open. Furthe doller rate is also increased and no one have any idea how it will effect project rate. These are major challenge after Covid 19 lockdown release.

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    Replies
    1. SCM plays important in this, which is adversely affected.

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  4. For sure market is going to be stagend for some time after uplifting of lockdown... But after this we have support and make sure consumer should have confident in this market for future point of view....

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    Replies
    1. Yes. market will suffer for sometime and then it depends on how market reacts and recovers.

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  5. Analysis of 2008 global economic slowdown and its after effects on solar industry might help in getting better forecast of whats going to happen in the next few months and how the insustry will revive after this.

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    Replies
    1. Yes, you are right, that will help will to get better analysis for industry.But here condition is bit different due to epidemic there might be some more or different market revival factors to be consider

      Delete

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