Kerosene to Solar PV Subsidy Swap: The business case for redirecting subsidy expenditure from kerosene to off-grid solar
Summary
This report proposes a "kerosene to solar subsidy swap" in India, suggesting that savings from the phased removal of inefficient and polluting kerosene subsidies be used to fund off-grid solar lighting for vulnerable households. It identifies pico solar PV as a viable replacement and suggests Uttar Pradesh and Odisha as potential locations for pilot studies.
Key insights
- The Government of India has worked to decrease kerosene subsidy spending by limiting the volume of subsidized fuel and raising prices, as these subsidies cause household pollution, negative health effects, and are prone to illegal diversion in distribution.
- India aims for universal household electrification by March 2019, with off-grid products seeing their highest sales volume in 2017, yet many marginalized households still rely on subsidized kerosene.
- The report evaluates the feasibility of a "subsidy swap" by identifying available pico solar PV products and analyzing supplier business models, specifically assessing Uttar Pradesh and Odisha as potential sites for a pilot study to measure the impact on solar adoption and kerosene reduction.
Cite the original document
- APA
- Shardul,, S. S. B. G. (2018). Kerosene to Solar PV Subsidy Swap: The business case for redirecting subsidy expenditure from kerosene to off-grid solar. International Institute for Sustainable Development. https://www.iisd.org/publications/report/kerosene-solar-pv-subsidy-swap-business-case-redirecting-subsidy-expenditure
- Chicago
- Shardul,, Shruti Sharma,Richard Bridle,Bigsna Gill,Martand. Kerosene to Solar PV Subsidy Swap: The business case for redirecting subsidy expenditure from kerosene to off-grid solar. International Institute for Sustainable Development, 2018. https://www.iisd.org/publications/report/kerosene-solar-pv-subsidy-swap-business-case-redirecting-subsidy-expenditure.
- Wikipedia
- {{cite report |last1=Shardul, |first1=Shruti Sharma,Richard Bridle,Bigsna Gill,Martand |title=Kerosene to Solar PV Subsidy Swap: The business case for redirecting subsidy expenditure from kerosene to off-grid solar |publisher=International Institute for Sustainable Development |date=18 July 2018 |url=https://www.iisd.org/publications/report/kerosene-solar-pv-subsidy-swap-business-case-redirecting-subsidy-expenditure |access-date=17 August 2026 |via=Climate Insights Directory}}
- BibTeX
- @techreport{shardul2018kerosene, author = {Shardul,, Shruti Sharma,Richard Bridle,Bigsna Gill,Martand}, title = {{Kerosene to Solar PV Subsidy Swap: The business case for redirecting subsidy expenditure from kerosene to off-grid solar}}, institution = {International Institute for Sustainable Development}, year = {2018}, month = jul, url = {https://www.iisd.org/publications/report/kerosene-solar-pv-subsidy-swap-business-case-redirecting-subsidy-expenditure}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }
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