With the increasing emphasis on using renewable energy to conserve natural resources and tackle power shortage, the real-estate sector is seen as one important market.

In buildings, renewable energy use boils down to two major options — solar photo voltaic for power generation and solar water heating systems (SWH). With solar photovoltaic systems, the initial investment is the equivalent of about Rs 18-20 crore for one MW of generating capacity, nearly five times the cost of conventional power. But SWH systems are a feasible option.

Despite laws pushing for establishment of SWH at the State level and encouragement by Central Government’s Ministry of New and Renewable Energy, the system has found poor response in most cities, particularly in the residential segment. The reason, says industry and the builders’ community, is market resistance due to lack of awareness and the high initial costs of the equipment. But given obvious benefits, the resistance can be overcome, they say.

According to the MNRE Web site, a 100-litre solar water heating system can replace an electric unit in a residence and save over 1,500 units of power every year and 1,000 such units save a peak load demand of about 1 MW. This is apart from environmental benefit — preventing 1.5 tonnes of CO{-2} emissions a year. But a family would have to shell out at least Rs 25,000 to install the system. A comparable electric system would cost a fifth of that price, which is a preferred option even if the initial cost of a solar water heating system could be recovered in three years.

The MNRE, along with the Ministry of Urban Development, has pushed for laws to make it mandatory for SWH in a wide category of buildings — hospitals, nursing homes, hotels, hostels, and individual residential buildings of more than 150 sq.m plinth area, in railway stations and airports. Also, the MNRE is considering income-tax sops for users of solar water heating systems. Several State Governments have incorporated this in their laws, including Andhra Pradesh, Maharashtra, Tamil Nadu, Rajasthan, Haryana, Uttar Pradesh, Uttaranchal and Chandigarh.

The Tamil Nadu Government has amended building rules to make solar water heater systems mandatory. But the law is followed more in the breach. Besides the initial cost, there is no enthusiasm among customers because the local weather conditions do not necessitate use of much hot water.

In Bangalore, where also solar water heaters have been made mandatory for buildings of 200 sq.m floor area or 400 sq.m site area, there is better compliance. An added incentive is the rebate in per unit charge of electricity on conventional power — and the much cooler weather. The solution appears to be that the market should be encouraged to decide on adopting this technology. The system should be made more voluntary than mandatory is the common perception.

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