Solar PV in India: An Overview and Future Prospects - India Renewable Energy Consulting – Solar, Biomass, Wind, Cleantech
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The Indian solar photovoltaic (PV) sector has emerged as a dynamic and rapidly growing market, playing a crucial role in the country’s energy landscape. As of early 2023, India has made significant strides in solar energy, with a notable increase in solar capacity installations, reflecting the nation’s commitment to expanding renewable energy sources.

Historical Context and Growth

Historically, India’s journey in solar energy began with modest installations, primarily focused on small-scale applications. However, with the launch of the National Solar Mission in 2010, a part of the National Action Plan on Climate Change, India set ambitious targets for solar energy production. This initiative marked a turning point, accelerating the adoption of solar PV across the country.

Over the years, solar PV technology in India has evolved, transitioning from being a niche, expensive option to a mainstream and cost-competitive energy source. The decrease in solar PV module prices globally has played a crucial role in this transformation. As a result, solar power tariffs in India have seen a dramatic reduction, making it one of the cheapest sources of energy in the country.

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Current State of Solar PV

As of early 2023, India stands as one of the top countries in solar energy production, with a substantial portion of its renewable energy portfolio coming from solar PV. The government’s supportive policies, such as the Production Linked Incentive (PLI) scheme, have incentivized domestic manufacturing, reducing reliance on imports and creating a more self-reliant solar ecosystem.

The expansion of solar PV in India is not just limited to large-scale solar parks. Rooftop solar installations have also gained popularity, driven by favorable policies and increasing awareness among consumers about the benefits of solar energy. These installations play a critical role in meeting the energy needs of urban areas and reducing the dependency on the grid.

Future Prospects and Challenges

Looking towards the future, India’s solar PV sector is poised for significant growth. The government’s target of achieving 450 GW of renewable energy capacity by 2030, with a substantial contribution from solar energy, sets a clear direction for the sector’s expansion. This ambitious goal underscores the nation’s commitment to transitioning towards a more sustainable and less carbon-intensive energy mix.

However, the path to achieving these targets is not without challenges. Issues such as land acquisition, grid stability, and storage technologies remain areas that require attention and innovation. Developing efficient energy storage solutions is particularly crucial for managing the intermittent nature of solar power and ensuring a stable energy supply.

Furthermore, India’s solar PV sector must navigate the complexities of global supply chain disruptions and trade policies. Building a robust domestic manufacturing base for solar components is essential to mitigate these risks and ensure a steady supply chain.

Conclusion

In conclusion, the solar PV sector in India presents a landscape of vast opportunities coupled with challenges that need strategic solutions. With continued government support, technological advancements, and increasing public and private sector participation, the future of solar PV in India looks promising. As the country strides forward in its renewable energy journey, solar PV will undoubtedly play a pivotal role in shaping a sustainable and energy-secure future for India.



About Narasimhan Santhanam (Narsi)

Narsi, a Director at EAI, Co-founded one of India's first climate tech consulting firm in 2008.

Since then, he has assisted over 250 Indian and International firms, across many climate tech domain Solar, Bio-energy, Green hydrogen, E-Mobility, Green Chemicals.

Narsi works closely with senior and top management corporates and helps then devise strategy and go-to-market plans to benefit from the fast growing Indian Climate tech market.

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