Solar energy cost is falling every year

The cost of solar energy is falling at 7% per annum and cost of grid energy is rising at the rate of 3% per annum (Internationally). Cost of coal will shoot up faster in the coming years because coal mines are being auctioned off. This will reflect on the cost of fossil fuel energy. A faster rate of depletion of coal will accelerate rise in coal price and it may reach prohibitive levels in the next two decades. It is observed that coal consumption doubles in ten every years. It is assessed that India's coal reserve will reach half of its present 104 Billion Tons if the development of coal mining continues at the present level. This is an alarming situation. Cost of coal is the deciding factor for cost of fossil fuel energy.

If the rate quoted in reverse auction process is an indicator solar energy is getting cheaper than grid energy. That means solar sector will stand by its own without any subsidy. Your argument about utility will be out of place if solar energy is cheaper than grid energy. I see that in due course, may be very soon, people will scramble for solar panels. Only a matter of time. People are not aware of the feasibility of cheaper solar energy. The best method to educate people on this aspect is to include a lesson about solar energy in primary and secondary classes.

Attitude of utilities are to be changed in line with the reality of benefits of solar energy -cheaper, abundance and perpetual. They (utility) can not compete with solar any more. Best solution is to negotiate with consumers. Easier solution is to allow carbon credits that is accrued in solar harvesting to be paid to utilities. After all solar producers (consumers) need utility power in the night. As such we can think of a compromise between the two.

Best way to popularize solar harvesting is go by Feed in Tariff. Government can regulate energy sector by this method. Government is at liberty to change FiT as the scenario changes. Once a pragmatic FiT is fixed by regulators everything move will smoothly. Banks will come forward looking for customers for their business growth. Government can sit back and watch the progress and intervene if necessary. As a joke! time is not far when utilities will be looking at solar producers (grid connected roof top producers) for its survival!. Utilities will make use of the fact that solar can not stand by its own.

Let us not think too much about net metering and smart metering at the moment. Immediate need is to conserve our precious coal reserve.