Kerosene to Solar PV Subsidy Swap: The business case for redirecting subsidy expenditure from kerosene to off-grid solar

The document proposes redirecting government expenditure from kerosene subsidies to off-grid solar PV products to support India's goal of universal household electrification. It argues that kerosene subsidies are inefficient and cause negative health impacts, while solar power offers a reliable replacement. The paper evaluates available pico solar PV products, existing business models, and the suitability of Uttar Pradesh and Odisha for pilot studies to assess the impact of reducing kerosene consumption in favor of solar energy.

• Kerosene subsidies in India are considered inefficient due to the ease of illegal fuel diversion in the distribution system and are associated with household pollution and negative health impacts.
• The Government of India has attempted to lower kerosene subsidy spending by restricting the volume of subsidized fuel and increasing prices, creating an opportunity to reinvest those savings into off-grid solar technologies for vulnerable households.
• The paper identifies Uttar Pradesh and Odisha as potential locations for pilot studies to measure the real-world effects of increasing solar adoption and decreasing kerosene use.

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} }