State Rooftop Solar Attractiveness Index – SARAL is an initiative of the Ministry of New and Renewable Energy (MNRE) and its partners to introduce a measuring scale or an index to evaluate and rank all states according to their performance, growth, level of maturity, policy framework, and implementation environment in the rooftop solar sector.
Why is Saral Index Important?
With the renewed focus on shifting to green energy, in the face of climate change, Solar Energy plays a pivotal role. The success of the International Solar Alliance and similar ambitious programs needs India to contribute and lead the global communities. Further, recently, the government and MNRE has published data on Nationally Determined Contributions (NDCs), with 39 per cent of installed capacity from non-fossil based sources being achieved. India is set to achieve 450 GW of renewable energy installed capacity by 2030.
This is important from the UPSC perspective also. In this article, we shall be discussing various aspects, the importance of the topic. Further, this article covers other important dimensions, keeping in mind the demands of the preliminary as well as a Main examination of the UPSC IAS Exam.
Why is an index like SARAL Needed?
- The renewable energy market is becoming increasingly relevant to the Indian power and utility sector.
- The renewable energy segment as a whole is witnessing substantial interests from entrepreneurs, developers, potential investors, end-users and government entities.
- The Government of India is striving to support the rapid scale-up of renewable products through several initiatives such as policy advocacy, financial assistance schemes and regulatory interventions.
- Various states have also adopted state-level guidelines to create a conducive ecosystem for rooftop solar installation.
- Based on states’ stakeholders’ readiness, availability of natural resources and state governments’ approach towards rooftop solar, the proliferation has been non-uniform across the states. creating an avenue for experience sharing and knowledge exchange for the states.
- There is a need for the states to exchange knowledge and learn from each other in the journey to achieve the country’s ambitious target of 40 GW rooftop solar installations by 2022.
- It introduces a platform for knowledge-sharing and inducing healthy competition in the rooftop solar segment among Indian states.
- It could also project the most attractive states, best practices, and positive developments.
- It highlights the key improvement areas across policy development and implementation, consumer involvement, and the investment ecosystem.
What are the Aims of the SARAL Index?
- To evaluate Indian states based on their preparedness to support rooftop solar deployment.
- It aims to objectively assess states based on several parameters critical for establishing strong solar rooftop markets.
Parameters
- Robustness of policy framework
- Effectiveness of policy support/implementation environment
- Consumer experience
- The investment climate for the rooftop solar sector
- Business ecosystem
What are the Benefits of the SARAL Index?
- Benchmark development and deployment of solar rooftop in states.
- Identify states that require more hand-holding in terms of policy and investment push.
- Identify investment opportunities.
- Recognize the states that need financing support for the development of solar rooftops.
- Gradually, establish a knowledge-sharing platform where the progressive states can share their experiences with the other states.
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How can it Help Various Stakeholders?
Central and State Governments
- Initiate dialogues with potential investors.
- Attract investment from domestic and foreign players as well as from development banks.
- Facilitate collaborations with states looking to develop their solar rooftop capacities.
- Compare and benchmark performance of states in regulatory and ease off setting up rooftop projects.
- Identify areas of improvement, as well as their counterparts with whom they can engage in knowledge sharing.
Institutional Investors
- Identify states that need credit.
- Measure the impact of financial assistance in terms of loans for the growth of rooftop solar.
Businesses
- Identify states which can yield better returns on investment in the solar rooftop.
- Provide input to their capital budgeting process.
What is the Framework of The SARAL?
- To comprehensively and realistically assess the performance of the rooftop solar sector in all states.
- Five broad areas have been identified after extensive stakeholder consultation.
They are:
- Comprehensiveness/robustness of policy framework
- Ease of implementation/effectiveness of policy support
- The investment climate for the rooftop solar sector
- Consumer experience
- Business ecosystem
- Multiple parameters and sub-parameters are taken to quantify those areas, for which data points are captured through primary and secondary research, before being mapped to a numeric scale.
- Finally, each score is scaled based on the assigned weights and an aggregate score is computed.
What is the Ranking of states on SARAL?
- Karnataka – SARAL score of 78.8
- Telangana – SARAL score of 72.2
- Gujarat – SARAL score of 67.9
- Andhra Pradesh – SARAL score of 66.1
Conclusion
Energy security is essential for the economic growth and development of the infrastructure of our country. To meet the twin objectives of augmenting renewable energy infrastructure, contribution to the overall energy basket, fulfilling the climate action commitments, on a global scale we need to make concerted efforts in that direction. The transition towards solar as a source of energy has become one of the major initiatives undertaken by the Government of India.
The SARAL index will provide a holistic and comprehensive account of available solar energy potential at a region, at the click of a mouse. It also further encourages the adoption of technology, informed decision making in harvesting solar energy across the country.
It is high time the climate urgency is addressed and citizens participate in the process. It will not only ensure alternative sources of economic empowerment (Farmers in Gujarat, selling electricity to the State Grid), but also translate them to active stakeholders in making our collective climate action a great success in times to come.
This article is relevant for the sections of the Current Affairs part of the UPSC Syllabus prescribed for the Preliminary and Main Stages of Civil Services Exam.
SARAL Index [UPSC Notes]:-Download PDF Here
Relevant Links:
| Global Energy Transition Index | IEA |
| Solar Cell | One Sun One World One Grid |
| International Atomic Energy Agency | India Energy Outlook |
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