The solar business in India ensures a great opportunity for business-minded. The sun does more for our planet than just render light during the daytime. Each particle of sunlight that reaches the Earth contains energy that fuels our planet. Solar energy is responsible for all the weather systems and energy sources on earth. The solar radiation fills our global energy needs for an entire year. Being the most abundant energy resource on earth, solar energy can be captured and used in several ways. As a renewable energy source, it is an important part of our clean energy.
There are many practical applications for solar power that are being used today. In counties where traditional power sources are not available, it is more economical to use solar energy. Solar energy came a long way back in 2010. The global market was very small and dependant on very few countries for subsidy. Solar energy has now become the lowest-cost form of new electricity generation, especially in sunnier regions. The technology improvements in the coming years will ensure that solar energy becomes cheaper.
By 2030, solar energy has the potential to become the most important source of energy for electricity production around the world. It will, in turn, have a positive impression on the environment and climate change.
Owing to the government’s favorable initiatives and technological innovations in manufacturing, solar power generation has tremendously increased in the last few years. The Indian government is projecting to extend its solar plans, targeting US$ 100 Billion in investment and 100 GW by 2022. So, now is an excellent time to venture into a solar business in India.
The generation of solar energy has tremendous scope in India. India being a tropical country, receives solar radiation throughout the year. With 3,000 hours of sunshine, this is equal to more than 5,000 trillion kWh of solar radiation per square meter. States like Andhra Pradesh, Gujarat, Bihar, Punjab, Rajasthan, Maharashtra, West Bengal, and Bihar have exceptional potential for tapping solar energy due to their location. With more usage of solar energy, we can reduce the use of firewood and dung cakes in rural areas since most of India’s population lives in rural India.
Due to the geographical location of India, many benefits for generating solar energy due to which, large projects have been proposed in India, which includes:
Thus, India has a huge plan for solar energy generation, which will boost the solar business in India.
India has vast solar potential; it is a lucrative opportunity for entrepreneurs to start a solar business in India. With the growing economy, India’s power consumption is going to rise, so the solar energy business in India is the ideal way to manage the balance between economic growth and sustainable development.
The AI-powered solutions can also help bridge the gaps in the circular economy and solar production through the use of energy-efficient products. With the unprecedented increase in energy consumption and solar adoption towards mitigating climate change, the solar business in India can expand and flourish.
With 37.6 GW previously installed, India has achieved its 20 GW target ahead of schedule, and it plans to target 100 GW of solar capacity by 2022. With this, India has surged to adopt renewable energy to feed its rising power demands with the falling solar panel prices and government-subsidized efforts to dominate the industry globally.
Keeping in mind the UN’s Sustainable Development Goals (SDG), which India has pledged to achieve by 2030, can be achieved by shifting the focus from a linear economy to a closed-loop economy. The circular economy in India is an economic system that aims to eliminate waste by the continued use of resources by closing the loop of the take-make-waste industrial model. It aims to make optimum use of the limited resources available and increase the value chain of products by recycling, reusing, repairing, and remanufacturing the products.
The greatest opportunity lies in the electricity industry to apply the circular model, with solar energy paving the way forward. Solar technology, coupled with intelligent operations for electricity generation, transmission, consumption, and distribution, will impact the electrical industry’s value chain. The Solar Power as a Service Model (SPAAS) or RESCO model can be employed by various solar developers to offer an end-to-end solution to customers.
The government is constantly pushing and supporting the solar business in India through various programs and initiatives by enabling an increase in solar power at a subsidized cost.
Below are the top government programs to push the companies to go solar:
The International Solar Alliance was launched by Indian Prime Minister Narendra Modi and French President Francois Hollande in 2015. The Goal of ISA is to install 1,000 GW of solar energy by 2030. To boost different sectors, ISA has launched five programs where solar technologies can be applied while reducing risks and addressing the financial crisis faced by the developing and least-developed states while adopting green power.
India’s solar sector has emerged as a big player as five years ago, India had just 3 GW of solar energy installations, and today it has 33 GW of solar energy. ISA’s main idea is to mobilize $1 trillion low-cost financings for the deployment of solar energy by 2030 and bring together 121 countries under the same roof that lie between Tropic of Cancer and Capricorn. Making solar energy available at affordable rates, establishing solar credit mechanisms, reducing the cost of finance and cost of technology, and enhancing energy security are the International Solar Alliance’s objectives.
The ISA is expected to make India a technological hub and to spur innovation in RE space with independent manufacturing capabilities and motivate the young entrepreneurs to start solar business in India. By this, the government, through its ‘Make in India’ initiative, is all set to make India self-reliant by enhancing its manufacturing capabilities. India is close to achieving 20 GW grid-connected solar power generation capacities in the year 2018, in chase of accomplishing its target of 100 GW by 2022. Thus, Isa could be remarkably beneficial in boosting the solar business in India.
The automotive sector contributes more than 7% to India’s Gross Domestic Product. The electric vehicles today (EVs) pose an opportunity for a major change in how locomotive products contribute to climate change. Implementation of sustainability through solar adoption has helped to achieve the transformational infrastructure goal.
Various automotive companies like Tata Motors, TVS Motors, and Mahindra have adopted the use of the solar plant, also called the ”on-site” plant as the roof size of such manufacturing units is usually large and open, therefore, well suited to solar. There is widespread adoption of solar energy by four-wheeler OEMs and auto ancillary manufacturers, two-wheeler manufacturers, tractors and commercial vehicles, and construction machinery manufacturers. Thus, India’s auto industry has great potential to drive the future of the solar business in India.
India’s government is keen on using solar energy and is undertaking various measures to promote green energy. The government has implemented various policies to boost the solar business in India. Some of the schemes include capital subsidy, assured power purchase agreement, and accelerated depreciation, etc. The government intends to reduce the capital expenditure in building a solar power plant, to make it cost-effective for the young and innovative entrepreneurs to invest their ideas into the solar business in India.
India is perhaps the most open market globally and has witnessed a drastic fall over the years in solar power tariffs. The declining solar power tariffs and open market in India have encouraged substantial foreign investments in the solar business in India.
A solar business in India is one of the most profitable businesses in today’s time. The profitability of the solar energy business is at the top position at present, and it will remain so even in the future. Due to which the central and state governments of India have been emphasizing solar business in India and has also started agricultural solar pump schemes in various states. Consequently, it will help expand the scope of PM Modi’s vision towards the start-up India initiative and the Aatmnirbhar Sena initiative.