Challenges faced by MSMEs in adoption of solar energy

Posted under: MSME
Date: 2023-11-27
Challenges faced by MSMEs in adoption of solar energy

Traditionally, MSMEs have heavily relied on conventional energy resources, which come at a high cost and harm the environment. However, one of the most pressing challenges this sector faces is managing energy consumption costs. Despite a substantial market and a compelling business case for transitioning from fossil fuel-based energy production to solar energy-based production, MSMEs still need to catch up. A major obstacle in this regard is the need for more creditworthiness, limited financing options, substantial initial capital requirements, concerns related to renewable energy service companies (RESCOs), long-term business sustainability, and collateral requirements. These factors compound the difficulties faced by MSMEs. Furthermore, operational hurdles add to the challenges. This is where the renewable energy sector takes center stage in reducing the adverse energy dependence of MSMEs and improving their profitability by reducing operational expenses.