Switching subsides from kerosene to off-grid solar would benefit the millions of Indian households that suffer frequent blackouts or that cannot afford grid electricity. A range of off-grid solar products is now cheaper than kerosene over the lifespan of the technology.

Given the increasingly prominent role and scope for off-grid solutions in complementing grid-based electrification in India, especially to electrify habitations where grid electricity is yet to reach, it would be crucial to set up appropriate regulatory arrangements for the scaling up of off-grid interventions in India. In view of this, the paper attempts to analyse the role of possible regulation in the off-grid electrification sector and explores the type of regulatory incentive structures that could be put in place in order to allow the off-grid sector to do well.

The development of mini-grids based on renewable energy sources such as solar PV, biogas and small hydro has been a successful venture in India.