India’s Solar Energy Sector in 2020 & Rise in Solar Power Tendersby Trade Reader Trade Information Portal
Up until 2007, solar power played an almost non-existent role in the Indian energy sector. With coal dominating the energy market in India, solar power was considered a marginal power source. But it is now one of the major drivers behind the transition to a greener, more sustainable energy.
In the beginning, the high cost of installation was a significant deterrent in making solar energy the chief source of clean energy in India. With the implementation of the latest improvements in manufacturing technology as well as much more efficient supply chain management, the cost of such installations has been brought down considerably. In the past decade, the cost involved in a solar setup has fallen by more than 80%. Additionally, the cost of large scale solar setups has been brought down by around 30% year on year. According to a survey carried out by the International Renewable Energy Agency (IREA), after adding up all the setup & maintenance costs, India is currently producing the cheapest solar energy in the world.
Moreover, with the government focusing on increasing solar installation in the rural area by offering solar panels at subsidized rates and other incentives, the market is expected to witness a large number of solar power tenders in India during the year 2020.
As solar energy moves towards becoming very inexpensive compared to various conventional sources of energy, the viability of solar plants for commercial implementation is expected to rise considerably this year. Along with the reduced hardware costs, government, as well as various privately-owned financial institutions, are working on providing firm support to new entrants in the solar energy sector by providing them with adequate financial assistance in the form of easy to avail business loan as well as technical and analytical support to fine-tune their operations.
In 2020, both the government as well as the private companies are expected to invest heavily in the application of solar energy at both large & small scale levels leading to much more employment opportunities as well as infrastructure development. This can be seen with an increase in the latest solar tenders in India for new projects in both rural & urban areas.
Currently, Solar energy makes up for around 4% of the total power generated in the country, while it is projected that by 2030, 40% of the total energy produced in India will be derived from renewable sources and solar power is expected to be the most prominent source for such clean energy.
The total energy requirement of the country is projected to notch up to 15,850 TWh by 2040. With the ever-increasing energy demands of a developing country like India and its drive to become energy independent in the near future, solar energy is undoubtedly going to play a crucial role as a stable & inexpensive source of clean and green energy.
Created on Feb 20th 2020 23:26. Viewed 303 times.
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