MSMEs in Coimbatore opt for solar energy to beat electricity costs

Coimbatore MSMEs turning to rooftop solar panels to cut electricity costs, seeking government support for installation.

An increasing number of Micro, Small and Medium-scale Enterprises (MSMEs) in Coimbatore district are opting for rooftop solar energy panels to control the electricity costs.

Be it the powerloom weavers or the engineering sector MSMEs, manufacturing units in the district are seeking ways to lower their production costs by reducing power tariffs. “Every year, there is a hike in fixed charges, power consumption costs, and property tax. We need to make provision for these. However, if we invest in solar energy, we can recover the money in a few years,” said an MSME unit owner.

M. Karthikeyan, president of the Coimbatore District Small Industries Association, says that 60 % of the MSMEs in the district operate out of their own buildings and a large number of these are likely to install rooftop solar panels. Some of them have already gone in for solar energy. “We are hopeful of a 15 % subsidy from the Tamil Nadu government in its budget to be presented next month,” he said.

The MSMEs require anywhere from 20 KW to 300 KW of installed solar energy. They will be able to recover the investment in three to seven years, depending on the usage, capacity installed, etc.

However, the Tamil Nadu Government currently collects wheeling charges and permits MSMEs to install only the capacity that meets the unit’s maximum power demand. He said the government should relax the norms so that more MSMEs choose renewable energy.

Powerloom units in the district are also looking at tapping solar energy. A couple of small weaving sheds had installed solar energy panels more than a decade ago. The powerloom units are looking for financial support either from Central government agencies or the State government to install solar panels.