Oil retailers are banking heavily on solar energy with easy loans

NEW DELHI: Oil companies that rely heavily on solar energy no longer seem ironic. The establishment of solar power plants is not a guarantee of commitment to the environment. On the contrary, it makes sense that the rising costs of operating gas pumps weigh on dealer revenues.

It is not surprising that India's fuel retailers in India are persuading gas pump owners to move to ecology by setting up solar power generation units. The experiences of IndianOil, the largest fuel retailer in the country, showed in 2015 that solar powered outlets are cheaper than burning diesel in generators to keep pumps running, especially in the hinterland.

Since then, IndianOil, which dominates nearly half of India's retail fuel market, has pushed its dealers to switch to green energy by contracting easy loans with SBI and other types of credit. 'badistance. Bharat Petroleum and Hindustan Petroleum also joined the movement but were slower.

"The solarization of gas pumps is part of IndianOil's green commitment. Our goal is to operate 100% of solar energy outlets over the next two years. The focus will be on the rural areas where we have Kisan Seva Kendras (lighter versions of the fuel pumps), said IndianOil President Sanjiv Singh.

"A solar power station not only provides continuous power, but also quality power and prevents equipment (at the output sockets) from tripping due to power interruptions or fluctuations ( Of voltage). Generator pollution is also controlled, "said Singh.

All of these elements result in uninterrupted operation and no loss of sales. Depending on the size of the fuel pump, a rooftop photovoltaic system of 24 kW (kilowatt) can reduce costs by more than 7,000 rupees a year. This represents almost 50% less than the average annual electricity bill, calculated on the basis of commercial rates above domestic rates, for the provision of the network. There are also other benefits, such as accelerated depreciation.

The grid power supply in rural areas and the hinterland remains uneven and also suffers from low, high or fluctuating voltage. Petrol pump owners in these areas rely on generators, which increases operating costs and erodes the dealer's margin.