Power or electricity is one of the most critical components of infrastructure affecting economic growth and well-being of nations. The genesis for all forms of energy is solar energy and with its pollution free nature, virtually inexhaustible supply and global distribution- solar energy has turned into a very attractive energy resource.
The Indian power sector is one of the most diversified in the and is undergoing a significant change which is redefining the entire industry outlook.
The solar energy potential in India is immense due to its convenient location near the Equator. India receives nearly 3000 hours of sunshine every year, which is equivalent to 5000 trillion kWh of energy.
According to the 11th five year plan, the government of India projects a massive expansion in installed solar capacity, and aims to reduce the price of electricity generated from solar energy,Indian solar installations are forecasted to be approximately 3,800 megawatt in 2015,
Planned Solar Capacity by 2022
The Government of India’s focus to attain ‘Power for All’ has accelerated capacity addition in the country. The Government has announced a massive renewable power production target of 175,000 MW by 2022, comprising 100,000 MW from solar power
The ministry of new and renewable energy (MNRE) revised India’s solar energy target in 2014 from having an installed capacity of 20 GW by 2022 to 100 GW by 2022
The Indian solar energy sector has been growing rapidly, in the past few years, majorly due to Government’s initiatives such as tax exemptions and subsidies.
Investments needed for solar energy sector: Rs 6,00,000 cr
The government of India has officially approved an incredibly ambitious plan for India’s fledgling solar sector as India being a tropical country receives adequate solar radiation for 300 days, amounting to 3,000 hours of sunshine equivalent to over 5,000 trillion kWh.
Simultaneously, there’s been a steady decline in solar power prices on the back of cheaper solar panel costs and lower financing costs that has made the sector increasingly attractive to investors. India has been ranked 7th worldwide for solar photovoltaic (PV) cell production and secure 9th rank in solar thermal power generation. This capacity is growing rapidly due to the entry of various private players in manufacturing of solar energy equipment.
Due to technical potential of 5,000 trillion kWh per year and minimum operating cost, Solar Power is considered the best suited energy source for India and the flurry of investors is making solar energy sector seem like the new Gold Rush. Given government's commitment to renewable and solar energy in particular, many companies and countries are willing to invest in developing India’s solar sector.