The Hindu Business Line : Solar water heating potential ‘untapped’

Chennai, March 17 Solar water heaters have a miniscule market share in the country despite its zero running cost and quick pay-back period, said Mr A.K. Rathi, Managing Director - Merloni TermoSanitari India Ltd (MTSIL), in an interview with Business Line.

The company – a subsidiary of Merloni TermoSanitari Italy – is among the leading producers of water heaters in India with a market share (including the unorganised space) of about 24 per cent. The company makes electric, gas and solar water heaters. While manufacturing electric water heater has been its domain the company ventured into solar water heaters about five years ago.

Huge potential

In solar heating, the company has diversified from the household segment to industrial segments as well. It has set up a 32,000-litre hot water generating solar unit for L’Oreal India in Pune.

There would be very few industries that would not find use for a solar water heater said Mr Rathi. Ranging from a factory’s canteen requirement to de-greasing operations, solar water heaters would find utility almost everywhere.

Solar water heaters require a one-time investment after which no running costs are incurred. The payback period could be as early as three years, if one uses hot water all 12 months a year. “ If you were to buy a solar heater for say Rs 24,000, you could for a payback period of three years, effectively save up to Rs 6,000- Rs 8,000 per annum of your electricity bill,” said Mr Rathi.

No capacity constraints

When asked as to why the demand for the product still remained subdued, Mr Rathi attributed it to lack of awareness about the recent technological changes. “Twenty years ago, when solar products were introduced in the country, a lot of fly-by-night operators came into the business lured by Government subsidies; they wrapped up business for good, leaving customers with products such as solar cookers that needed servicing. The onus of creating awareness now lies with the organised players in the industry now.”

Solar water heaters do not have any capacity constraint. “It is a question of how many solar panels needed to be installed; you may need 1,000 solar panels for a capacity of say one lakh litres of hot water per day! This may need a lot of space but there is no limit to the capacity of water that it can heat,” said Mr Rathi.

Many States provide subsidies either on a lumpsum or per unit basis to the users of solar heaters. There are also subsidised lending rates for purchasing a solar heater. Mr Rathi said that while India is the only country with a Ministry for Renewable Energy and a lot of initiatives are being taken, there are some hitches at the execution level. Treating the renewable energy sector as a separate segment for the purpose of loan disbursements, as is the case with agriculture for instance, could trigger interest in using a resource that is cost effective as well as environment-friendly, he said.

MTSIL had a turnover of Rs 200 crore last year and has had a revenue and volume growth rate of 25 per cent annually over the last few years.

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