Factors driving growth of solar energy in India

About 130 crore people live in India and her population is still growing with stable growth rate. With the increase in human population, the energy requirement of India is reaching new heights. Presently, there is a stark mismatch of demand-supply of electricity. To be precise, India’s power supply is 12% less than the minimal demand. One major reason for this gap is India’s heavy dependence on fossil fuels for power generation. Studies have concluded that solar power has the potential to grow immensely to meet the energy needs of India. There are a number of factors facilitating to possible growth of solar power harnessing in India. Here are the top reasons why solar power in India is considered the next big thing -  

Demand: The power ministry of Government of India forecasts a huge increase in the demand for electricity in the next 10 years due to a higher level of mechanization. With a fast depleting reservoir of fossil fuels, the thermal power stations are unlikely to meet the requirements of the nation. Moreover, they consume a huge quantity of freshwater and causes pollution. Solar power is the only viable alternative.

Availability of Sunlight: Being near the equator, almost all the places of India receives intense sunlight for most of the year. To be quantitative, India receives about 200 days of intense sunlight. The energy received by the earth surface in India is as high as 4-6 kWh/day. With a conversion rate of 15%, and considering the total solar energy harvestable area, 1,972 billion kWh can be generated from solar energy.

Government Initiatives: Government of India’s earnest push for solar energy is another factor which drives India’s solar industry in a positive direction. Some of the major benefits conferred on solar plants are – exemption of excise duty on import of certain parts, guaranteed market for the energy produced, a ten year tax holiday on the solar energy sold, 30% subsidy of grid power setups etc.

Housetop Solar Panels: Housetop solar panels have become a very popular source of solar energy harvesting in India. It has many advantages. As the name suggests, the unit is a small level power harnessing system installed on the roof of the house. It is an independent venture and the owner does not have to depend on anyone else for it. Moreover, it acts as a great backup source even when the grid power supply fails.

Net Metering: Net metering is the process through which household solar power can be supplied to the grid when access energy is generated. The takeaway from net metering is that one has to pay the electricity bill for the net electricity consumed from the grid that is the total consumption from the grid minus the amount of power added back to the grid.

Carbon Trading to Generate Extra Earning: Being a clean source of energy, solar power plants can accumulate carbon credits and trade it with other industries. It is estimated that a revenue of Rs 0.9-1.5/ kWh of power can be earned from carbon trading.

Solar Cars: With the rising prices of diesel and petrol and, more importantly, the depletion of oil reservoirs, solar cars are the next in thing. All major motor vehicle companies have already expressed their intent to design cars based on solar products and electric power.