India has countless electricians skilled in traditional methods but with solar electricity, they need to work with multimeters and measure current accurately, said Ajay Mathur, Director General of International Solar Alliance
Outlook Planet C3: The micro, small and medium enterprises (MSMEs) face three key issues, including standardisation of equipments, capacity building of people and viable business models, said Ajay Mathur, Director General of International Solar Alliance.
Speaking at Outlook Planet C3 (Climate, Circularity and Community) event in New Delhi today, Mathur said, “MSMEs have distinct energy needs like lighting, cooling, and powering equipment. We need standard solutions for them to make solar equipment easily accessible and deployable.”
And secondly, India has countless electricians skilled in traditional methods but with solar electricity, they need to work with multimeters and measure current accurately, the ISA official said while highlighting the critical need for ‘upskilling’.
He further spoke about the dominance of capital costs in the MSME sector. “In renewable, capital costs dominate with around 95% of total electricity costs, and just 5% accounts for operating costs. In contrast, fossil fuels like coal and diesel have over 50% in operating costs. This shift demands innovative financing and business models,” Mathur asserted.
In addition, MSMSs also need flexible financing options. “While some install solar rooftops using their own resources, large-scale industrial adoption requires third-party financing models, ensuring affordability at lower electricity rates,” he added.
India has nearly 6 crore registered MSMEs accounting for nearly 30% of the country’s GDP. Consuming approximately 25% of industrial sector’s energy, these enterprises are expected to contribute over 72 million tonnes of carbon dioxide emissions by 2030. MSMEs, as the backbone of Indian economy, are significant energy consumers and contributors to the nation’s carbon footprint.
With India’s ambitious goal of achieving net-zero emissions by 2070, the MSME sector is at a critical juncture. The transition to sustainability isn’t just a necessity, it’s an opportunity to future-proof enterprises and stay ahead in the race.
In light of this, Outlook Planet started off its first edition of C3—Climate Circularity Community—a flagship sustainability event, on March 10. C3 is a two-day event aimed at celebrating the impact being created in the sustainable space, bringing together thought leaders, innovators and changemakers to drive meaningful discussions and solutions.