TIRTHANKAR MANDAL, AMALA DEVI, UTTARA NARAYAN
Findings from household surveys in five Indian cities
CONSUMER EXPERIENCE
WITH RESIDENTIAL
ROOFTOP SOLAR PV
THERE IS A NEED TO FOCUS ON RESIDENTIAL
ELECTRICITY CONSUMERS
• Indian rooftop segment has a
steep target to meet and is
currently experiencing slow
adoption
• Existing studies have identified
various issues and concerns—
few have focused on the
residential consumers’
experience
• Structured, evidence-based
approach to documenting
consumer experience and
issues faced in installing rooftop
solar
131 377
20000
5000
0
5000
10000
15000
20000
25000
2015 2017 2022
(original
target)
2022
(SRISTI
target)
2015 2017
2022 (original target) 2022 (SRISTI target)
Targets and installed capacity in MW
Source: Bridge to India 2015, 2017.,MNRE SRISHTI Draft 2017
RESEARCH QUESTIONS
• What is a residential consumer’s outlook towards rooftop solar in
Indian cities? What promotes or prevents them from installing
rooftop solar?
• What are the current experiences of the residential consumers
who have installed, or considered installing rooftop solar in India?
METHODOLOGY
• Desk research on secondary publications that have addressed
residential rooftop solar PV
• Selection of 5 Indian cities – Bangalore, Chandigarh, Chennai,
Nagpur, Jaipur based on criteria developed using desk research
Secondary
research
• Identify and collaborate with local, city-level civil society
organisations working on residential electricity and consumer
awareness. Partnerships include CUTS International (Jaipur), CAG
(Chennai), Consumer Association (Chandigarh)
Local partner
identification
• Design the survey and analytical framework
• Develop survey questionnaire and run a pilot to iterate
questionnaire
• Conduct survey
Survey
• Data analysis using the analytical framework
• Identify and categorise consumer pain-points around key themes
to be taken up as next steps to enhance residential consumer
experience
Analysis
STUDY SCOPE
• 1,808 households surveyed across 5 cities
– Approximately 360 households per city
33
6
1
3
3
348
360
307
309
339
6
1
12
52
12
0% 20% 40% 60% 80% 100%
Bangalore
Chandigarh
Chennai
Jaipur
Nagpur
No. of dwellings of each type
surveyed
Apartment
Apartment in gated complex
Independent house
Single house in gated complex
Households that installed solar
PV
325
Households that considered
installing solar PV, but not
installed
223
Households that did not even
consider installing solar PV
1,260
Total 1,808
CONSUMERS’ EXPERIENCE AND KEY ISSUES
Motivation ExperienceAwareness
Encountering different
sources of Information
Being aware
about solar
PV
Considering
installing
Solar PV
Gathering information about vendor services, financing, regulatory
processes
Evaluating
vendor
services
Accessing
sources of
finance
Applying for
subsidies (if
applicable)
Applying for
permissions &
complying
with
procedures
Experiences
during and
post-
installation
Lack of clear, credible, and easily
accessible sources of information
Need for greater
alignment between
government
agencies
Time
Limitations in
institutional capacity
to implement
Absence of
customized
financial offerings
1. NEED FOR BETTER ALIGNMENT BETWEEN VARIOUS
GOVERNMENT AGENCIES
• Utility perceives promotion of rooftop solar in conflict with traditional
grid-based power supply: the case of net metering in Chennai
• Respondents reporting delays in processing from the utility the highest in Chennai
at 58%
• Over 90% specifically mentioned delays in getting “net-meters”
• Delays range from 2-6 months
• Lack of alignment between Energy and other Government
Departments: the case of the Urban Planning dept. in Chandigarh
Building Rules stipulate provisions that are difficult to implement
•Current specifications for roofs with solar PV systems acts as a deterrent
•Height restrictions which affect cleaning of the panels and their efficacy
Chandigarh Building Rules (Urban) 2017
2. LIMITED CAPACITY AND KNOWLEDGE OF THE
IMPLEMENTING ENTITIES
2.1 Need for a mandate, resources, personnel, expertise
47% of people who
installed solar faced
challenges in dealing with
the respective utility or
State Nodal Agency
0
5
10
15
20
25
30
35
40
Bangalore Chandigarh Chennai Jaipur Nagpur
% of people who faced challenges in dealing
with institutions by city
SNA- delay in subsidy
Utility- billing
Utility- delay in processing
Utility- officials don't give proper info, lack capacity, need multiple visits
3. ABSENCE OF CUSTOMIZED FINANCIAL
OFFERINGS
Cities
Difference in avg.
payback period with
and without subsidy
(in years)*
Bangalore 1
Chandigarh 6
Chennai 4
Jaipur 2
Nagpur 2
3.1 Financial offerings not customized by cities: Subsidy and loan uptake
influenced by different cost structures and payback periods
3. ABSENCE OF CUSTOMIZED FINANCIAL
OFFERINGS
3.2 Financial offerings not customized for residential sector: Problems
with collaterals (no resale value, disproportionate mortgages)
[11] Bangalore workshops; [2] Bangalore and Chandigarh workshops
4 0 0
8
2
0
5
10
15
20
Bangalore Chandigarh Chennai Jaipur Nagpur
Applied for loans
Applied for loans
• No re-sale value
• “This is a risk for banks, should a system fail or consumers’ default on loan
repayment” [1]
• Disproportionate collateral
• “Consumers are not willing to mortgage their homes for a solar system which is
worth a few lakhs” [2]
4. LACK OF CLEAR, CREDIBLE, & EASILY ACCESSIBLE
SOURCES OF INFORMATION
• Awareness levels are currently low, but awareness is
important for decision-making
• There is a lack of clear, credible information
• Clear, credible information is not always accessible
4. LACK OF CLEAR, CREDIBLE, & EASILY
ACCESSIBLE SOURCES OF INFORMATION
4.1 Awareness levels are currently low, but awareness is important
for decision-making
• Improving awareness is the most
cited recommendation by people
who considered but did not install
46%
8%
5%1%
40%
Improving
awareness
Vendors
Financial
Institutions
Regulators and
policy makers
Others
• Awareness related issues stated
among the top reasons for not having
considered solar
0%
20%
40%
60%
80%
100%
Don't know about solar Know about solar but not details
Not value for money Heard bad reviews
Physical constraints Others
4. LACK OF CLEAR, CREDIBLE, & EASILY
ACCESSIBLE SOURCES OF INFORMATION
4.2 Information is not clear and credible
• On an average, 45% of installed consumers relied on vendor for
getting information
4. LACK OF CLEAR, CREDIBLE, & EASILY
ACCESSIBLE SOURCES OF INFORMATION
4.4 Clear and credible information is not always accessible
• On an average, only 19% of
the respondents used the
internet to get information
• The Government has
several initiatives in the
form of ARUN app, SPIN
website
• 47% of those who have
installed solar and 56% of
those who considered PVs
relied on references from
friends, family and
neighbors.
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Bangalore Chennai Chandigarh Jaipur Nagpur
% of people using internet for information on
vendor services, subsidy, loan, regulations
Vendor services Subsidy Loan Regulations
CONCLUDING OBSERVATIONS: CONSUMER
EXPERIENCE NEEDS TO BE ENHANCED
• Unlike grid-based electricity supply, rooftop solar requires proactive
consumer engagement.
– Consumer-centric approach crucial
• Experiences are contextual to different cities
– Current top-down approaches should be complemented with
bottom-up initiatives
• Addressing consumer issues can catalyse uptake
• SRISTI Scheme
– Greater role for utilities: enhanced local capacities
– Reliance on online portals and applications to connect with
consumers
SUGGESTIONS FROM CONSULTATIONS (1/2)
Suggestions Theme
Introduce automated net-metered billing systems including at
local levels
Capacity
Migrate billing and approval processes online to reduce need
for multiple physical visits
Capacity
Enhance capacities of local-level officials to address issues of
residential consumers
Capacity
Enhance capacities for bank officials to address issues of
residential consumers
Capacity,
finance
Introduce consumer-friendly measures like standardization of
benchmark cost across all banks
Finance
SUGGESTIONS FROM CONSULTATIONS (2/2)
Suggestions Theme
Strategies to involve RWAs to support SNAs in spending their
campaign budgets
Awareness
Innovative and multimedia/outreach for supply of sources of
information
Awareness
Ensure clarity of information Awareness
Ensure credibility by getting Govt. or Industry Associations to
certify vendor and technology standards
Awareness
Ensure accessibility through options like media coverage,
workshops and awareness events
Awareness
THANK YOU

CK2018: Consumer Experience with Residential Rooftop Solar PV

  • 1.
    TIRTHANKAR MANDAL, AMALADEVI, UTTARA NARAYAN Findings from household surveys in five Indian cities CONSUMER EXPERIENCE WITH RESIDENTIAL ROOFTOP SOLAR PV
  • 2.
    THERE IS ANEED TO FOCUS ON RESIDENTIAL ELECTRICITY CONSUMERS • Indian rooftop segment has a steep target to meet and is currently experiencing slow adoption • Existing studies have identified various issues and concerns— few have focused on the residential consumers’ experience • Structured, evidence-based approach to documenting consumer experience and issues faced in installing rooftop solar 131 377 20000 5000 0 5000 10000 15000 20000 25000 2015 2017 2022 (original target) 2022 (SRISTI target) 2015 2017 2022 (original target) 2022 (SRISTI target) Targets and installed capacity in MW Source: Bridge to India 2015, 2017.,MNRE SRISHTI Draft 2017
  • 3.
    RESEARCH QUESTIONS • Whatis a residential consumer’s outlook towards rooftop solar in Indian cities? What promotes or prevents them from installing rooftop solar? • What are the current experiences of the residential consumers who have installed, or considered installing rooftop solar in India?
  • 4.
    METHODOLOGY • Desk researchon secondary publications that have addressed residential rooftop solar PV • Selection of 5 Indian cities – Bangalore, Chandigarh, Chennai, Nagpur, Jaipur based on criteria developed using desk research Secondary research • Identify and collaborate with local, city-level civil society organisations working on residential electricity and consumer awareness. Partnerships include CUTS International (Jaipur), CAG (Chennai), Consumer Association (Chandigarh) Local partner identification • Design the survey and analytical framework • Develop survey questionnaire and run a pilot to iterate questionnaire • Conduct survey Survey • Data analysis using the analytical framework • Identify and categorise consumer pain-points around key themes to be taken up as next steps to enhance residential consumer experience Analysis
  • 5.
    STUDY SCOPE • 1,808households surveyed across 5 cities – Approximately 360 households per city 33 6 1 3 3 348 360 307 309 339 6 1 12 52 12 0% 20% 40% 60% 80% 100% Bangalore Chandigarh Chennai Jaipur Nagpur No. of dwellings of each type surveyed Apartment Apartment in gated complex Independent house Single house in gated complex Households that installed solar PV 325 Households that considered installing solar PV, but not installed 223 Households that did not even consider installing solar PV 1,260 Total 1,808
  • 6.
    CONSUMERS’ EXPERIENCE ANDKEY ISSUES Motivation ExperienceAwareness Encountering different sources of Information Being aware about solar PV Considering installing Solar PV Gathering information about vendor services, financing, regulatory processes Evaluating vendor services Accessing sources of finance Applying for subsidies (if applicable) Applying for permissions & complying with procedures Experiences during and post- installation Lack of clear, credible, and easily accessible sources of information Need for greater alignment between government agencies Time Limitations in institutional capacity to implement Absence of customized financial offerings
  • 7.
    1. NEED FORBETTER ALIGNMENT BETWEEN VARIOUS GOVERNMENT AGENCIES • Utility perceives promotion of rooftop solar in conflict with traditional grid-based power supply: the case of net metering in Chennai • Respondents reporting delays in processing from the utility the highest in Chennai at 58% • Over 90% specifically mentioned delays in getting “net-meters” • Delays range from 2-6 months • Lack of alignment between Energy and other Government Departments: the case of the Urban Planning dept. in Chandigarh Building Rules stipulate provisions that are difficult to implement •Current specifications for roofs with solar PV systems acts as a deterrent •Height restrictions which affect cleaning of the panels and their efficacy Chandigarh Building Rules (Urban) 2017
  • 8.
    2. LIMITED CAPACITYAND KNOWLEDGE OF THE IMPLEMENTING ENTITIES 2.1 Need for a mandate, resources, personnel, expertise 47% of people who installed solar faced challenges in dealing with the respective utility or State Nodal Agency 0 5 10 15 20 25 30 35 40 Bangalore Chandigarh Chennai Jaipur Nagpur % of people who faced challenges in dealing with institutions by city SNA- delay in subsidy Utility- billing Utility- delay in processing Utility- officials don't give proper info, lack capacity, need multiple visits
  • 9.
    3. ABSENCE OFCUSTOMIZED FINANCIAL OFFERINGS Cities Difference in avg. payback period with and without subsidy (in years)* Bangalore 1 Chandigarh 6 Chennai 4 Jaipur 2 Nagpur 2 3.1 Financial offerings not customized by cities: Subsidy and loan uptake influenced by different cost structures and payback periods
  • 10.
    3. ABSENCE OFCUSTOMIZED FINANCIAL OFFERINGS 3.2 Financial offerings not customized for residential sector: Problems with collaterals (no resale value, disproportionate mortgages) [11] Bangalore workshops; [2] Bangalore and Chandigarh workshops 4 0 0 8 2 0 5 10 15 20 Bangalore Chandigarh Chennai Jaipur Nagpur Applied for loans Applied for loans • No re-sale value • “This is a risk for banks, should a system fail or consumers’ default on loan repayment” [1] • Disproportionate collateral • “Consumers are not willing to mortgage their homes for a solar system which is worth a few lakhs” [2]
  • 11.
    4. LACK OFCLEAR, CREDIBLE, & EASILY ACCESSIBLE SOURCES OF INFORMATION • Awareness levels are currently low, but awareness is important for decision-making • There is a lack of clear, credible information • Clear, credible information is not always accessible
  • 12.
    4. LACK OFCLEAR, CREDIBLE, & EASILY ACCESSIBLE SOURCES OF INFORMATION 4.1 Awareness levels are currently low, but awareness is important for decision-making • Improving awareness is the most cited recommendation by people who considered but did not install 46% 8% 5%1% 40% Improving awareness Vendors Financial Institutions Regulators and policy makers Others • Awareness related issues stated among the top reasons for not having considered solar 0% 20% 40% 60% 80% 100% Don't know about solar Know about solar but not details Not value for money Heard bad reviews Physical constraints Others
  • 13.
    4. LACK OFCLEAR, CREDIBLE, & EASILY ACCESSIBLE SOURCES OF INFORMATION 4.2 Information is not clear and credible • On an average, 45% of installed consumers relied on vendor for getting information
  • 14.
    4. LACK OFCLEAR, CREDIBLE, & EASILY ACCESSIBLE SOURCES OF INFORMATION 4.4 Clear and credible information is not always accessible • On an average, only 19% of the respondents used the internet to get information • The Government has several initiatives in the form of ARUN app, SPIN website • 47% of those who have installed solar and 56% of those who considered PVs relied on references from friends, family and neighbors. 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% Bangalore Chennai Chandigarh Jaipur Nagpur % of people using internet for information on vendor services, subsidy, loan, regulations Vendor services Subsidy Loan Regulations
  • 15.
    CONCLUDING OBSERVATIONS: CONSUMER EXPERIENCENEEDS TO BE ENHANCED • Unlike grid-based electricity supply, rooftop solar requires proactive consumer engagement. – Consumer-centric approach crucial • Experiences are contextual to different cities – Current top-down approaches should be complemented with bottom-up initiatives • Addressing consumer issues can catalyse uptake • SRISTI Scheme – Greater role for utilities: enhanced local capacities – Reliance on online portals and applications to connect with consumers
  • 16.
    SUGGESTIONS FROM CONSULTATIONS(1/2) Suggestions Theme Introduce automated net-metered billing systems including at local levels Capacity Migrate billing and approval processes online to reduce need for multiple physical visits Capacity Enhance capacities of local-level officials to address issues of residential consumers Capacity Enhance capacities for bank officials to address issues of residential consumers Capacity, finance Introduce consumer-friendly measures like standardization of benchmark cost across all banks Finance
  • 17.
    SUGGESTIONS FROM CONSULTATIONS(2/2) Suggestions Theme Strategies to involve RWAs to support SNAs in spending their campaign budgets Awareness Innovative and multimedia/outreach for supply of sources of information Awareness Ensure clarity of information Awareness Ensure credibility by getting Govt. or Industry Associations to certify vendor and technology standards Awareness Ensure accessibility through options like media coverage, workshops and awareness events Awareness
  • 18.