The Minister for Micro, Small and Medium Enterprises (MSMEs) and Road Transport & Highways Nitin Gadkari offered a value proposition to MSMEs that may significantly bring down cost of electricity consumption.
He urged MSMEs to go for the solar rooftops. In a virtual programme, he said “I believe there is a strong business case for MSMEs to install rooftop solar and achieve significant savings to achieve the cost-competitiveness. I am confident that MSMEs will stand together in generating and consuming solar power using their rooftops.”
How does it make business sense for MSMEs?
According to the Minister, average of ₹8/unit or higher per unit is being paid by the MSMEs for power consumption, which contributes to nearly one-fifth of the overall production costs.
He said that the Ministry is working with the World Bank on a credit guarantee program to make financing accessible to unrated MSMEs for implementation of rooftop solar facility. He urged that considering the fact that rates of solar power from large utility power plants have come down to a record INR 1.99/kWh, MSMEs must leverage this opportunity to bring down their energy expenses.
The idea the Minister suggested will help MSMEs to reduce their power costs and also helps to decarbonise.