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Rise in sale of solar panels

October 24, 2011

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President Zardari recently asked the concerned bodies to shift Presidency to solar power on the pattern of Planning Commission and Pakistan Engineering Council. - File photo

While the huge hydro-power potential of the country still remains unutilised, quite a few people hit by loadshedding and power tariff hikes in Khyber Pakhtunkhwa are turning towards solar energy.

Facilitated by high intensity sun-rays in the tribal belt, the sales of solar panels are going up. Wakeel Ahmad, a Peshawar-based dealer of solar panel, said people are turning to this technology as load-shedding/cost of power and the rising expenses on generators have left them with no option but to adopt solar technology. Nazir Ahmad, a dealer of solar energy equipment in Swabi, claimed that scores of solar energy panels are being sold in the area.

“Solar lamps have been installed near Peshawar bus stand with plans to install them on roads and streets in the city soon. Individuals are also coming up in great numbers to buy these panels,” he said.

“Solar panel is sold at Rs250 per watt with 20 years warranty. A normal household with daily consumption of 1000 watt would thus have to spend Rs250,000. The family could also buy a solar panel for Rs40,000 to charge the electricity-based uninterrupted power supply systems to use the power later in their homes,” he added.

A Wapda official in Dir said people in this difficult terrain have installed imported solar panels which have revolutionised their lives as well as agriculture. Over a million tube-wells in the country are using 1000-1500MW of power, straining the weak national grid, consuming over billions of rupees in power subsidy.

According to Ahmad, a solar tube-well with 20 years warranty could be installed by one-time investment of Rs0.9mn which can pump water non-stop from sunrise to sunset for irrigation. Solar pumps could fulfill the daily water requirements of small to medium-size fish farms and communities as well. These could pump water from a depth of up to 1000 feet, according to a report.

Pakistan receives high level of solar radiation throughout the year- around 1000 watts per square meter. Mr Arif Allauddin, chief executive officer of AEDB, said recently that 2.9mn MW could be produced through tapping solar energy in the country.

But Pakistan has failed to utilise solar power though it has opted to invest heavily in the oil-run power plants. The AEDB has signed several MoUs on installation of solar energy panels with different agencies. It plans widespread use of off-grid solar technologies in Pakistan through public and private sector cooperation. Setting up of local solar PV manufacturing facilities is also included in its programme.

However, the high installation cost of the system, lack of awareness among people, and banks’ reluctance to finance the system were hindering the spread of the technology.

Failure to establish local solar energy manufacturing units in the country has also made the system comparatively costlier.

Several government companies like AEDB, Pakistan Council for Renewable Technologies etc, dealing with the sector, and the lengthy process of approval of solar energy projects inhibit investors from adopting this system.

The technology may be costly and unaffordable for one person, but is considered within reach when combined investment is made by a few families or the process is supported by the government and international bodies.

But the fact that solar energy system can be installed with one-time investment and there is no need of maintenance or operating expenses.

“While the World Bank and Asian Development Bank are allocating funds for solar technologies, the local banks do not come forward to support the sector. The AEDB will keep on creating high hopes but actually it is doing nothing,” said an expert.

A project, launched by the UN environment programme in 2003 in the Indian State of Karnataka, facilitated over 18,000 loans for solar panels over three years. UNEP recruited two popular banks to take part in the project as part of their ‘priority sector lending’ obligation and it subsidised the loans to help decrease the interest rate. The UNEP plans to initiate similar projects in other countries but not in Pakistan.

The government needs to provide tax holidays and grants to selected villages, schools, mosques and offices, some resource risk coverage, competitive tariff for solar energy and guaranteed purchase agreements from producers.

President Zardari recently asked the concerned bodies to shift Presidency to solar power on the pattern of Planning Commission and Pakistan Engineering Counci. He also advised that one town be converted to solar energy each year; all new development schemes should have solar street lights and solar cookers. Use of water heaters and water pumps should be encouraged, he said.

According to a report in the Guardian recently, Greece may allow Germany to develop about 20,000 hectares of solar power parks for exporting renewable energy to Germany.