Several power-consuming small and medium enterprises (SMEs) in India are hesitant to install rooftop solar panels due to perceived performance risks, according to a survey by global consultancy giant Deloitte.
The survey, titled 'Scaling Up Rooftop Solar in SME Sector in India', was conducted by across 150 MSMEs in six industrial clusters -- rubber and plastic, pharmaceuticals, automobiles, paper, food and beverage, and textile.
The finding assumes significance as India has set a target of having 40 gigawatt (GW) of rooftop solar capacity by 2022.
"The survey was conducted on the basis of average electricity consumption, concentration and composition of MSMEs, scale and volume of operations, profitability and geographical spread.
"The level of awareness about rooftop solar was quite low among the sample surveyed, many high-power consuming SMEs were hesitant to install rooftop solar because of the perceived performance risks," the survey said.
Abhishek Bhaskar, energy specialist at the US-based Climate Investment Funds (CIF), which has contributed to the survey, said limited access to finance, need to strengthen awareness, and escalating energy expenses are impacting the long-term profitability, competitiveness and sustainability of the sector.
"A multi-pronged approach involving supportive regulations, risk-bearing financing, and awareness building is needed to demonstrate viability and help scale up rooftop solar in the sector," he added.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)