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EPC players in rooftop solar shutting shop

Tough financial conditions have forced quite a few EPC players in the rooftop solar segment to close down their rooftop solar divisions in the past 6 months. Falling margins and tariff pressure are making it difficult for these firms to meet their working capital and other operating expenses. These shutdowns have been attributed to flawed policy decisions by states like Tamil Nadu, UP & Rajasthan including failure to honour 20-30% capital incentives and retrospectively cancel net metering. Ujjas Energy, Kotak Urja, Relyon Solar, Harsha Abacus, Kirloskar Solar and 8 Minute are some of the companies facing immense financial constraints. “States are now asking for gross metering, which means paying below the agreed tariff for the surplus power. Besides, there are very few financing options for individuals or SMEs. This has led to investment uncertainties and entry of foreign and risk capital in the sector,” states Ketan Mehta, CEO & MD of Rays Power Infra.