The Past 10 Years – An Overview
India has proved to be a major player in the solar energy industry. In the past decade alone, it has seen an exponential increase in its capacity for solar power. By the end of 2020, the nation had installed a collective base of over 40 GW of solar power, with an annual growth of about 25%. Global factors like reduced cost of PV modules, rising demand and production, and a united commitment to slash carbon emissions also contributed to the growth of India’s renewable energy sector.
Most importantly, regulatory guidelines like duty-free import of Chinese PV modules, minimal duty on quality components from across the world, and the removal of subsidies on commercial and industrial business further led to the opening up of the renewable energy sector. Investment into the green energy industry increased.
Challenges in Solar Energy Today
India’s target of 175 GW Renewable Energy by 2022, (100 GW solar power, out of which 40 GW is powered by rooftop solar) was originally an ambitious but achievable target. Today, our installed rooftop solar capacity is only between 5 and 6 GW.
India had originally set a target to achieve 100 GW in solar energy by 2022, out of which 40 GW was to be powered by rooftop solar. However, its rooftop solar capacity stands at only 5 to 6 GW.
The COVID-19 pandemic caused disruptions in the supply chain, and while these are likely to be resolved in the near future, it fuels uncertainty in the present-day scenario.
India’s commitment to the Paris Pledge by 2030 takes a 3-pronged approach:
- 33 to 35% reduction in emissions intensity of the GDP
- 40% of installed electricity capacity to be renewable energy or nuclear
- 2,000 to 3,000 MtCO2e of an additional cumulative carbon sink
According to a 2018 report released by the World Health Organisation, a staggering 9 out of 10 most polluted cities in the world are in India! By 2021, the country was found to be the most polluted region in the world. This makes national objectives like transitioning to clean energy, electric mobility and improved energy efficiency not merely idealistic goals, but absolutely necessary measures that must be taken.
What’s Next
India is one of the most rapidly growing economies in the world, and its demand for energy aptly reflects this. Going forward, policies need to include practices that minimize climate risk and improve classification standards to help investors, financial institutions and investors gauge market potential and system-wide risks better.
Some measures that can be implemented to promote the growth of the renewable energy sector include:
- Removal of cap on net metering
- The freedom to choose between net or gross metering
- Standardized long-term open access norms across states
- A unified renewable energy policy across the country
- Minimal time taken for approvals related to connectivity, and net metering
Moreover, technological advancements in the sector like floating solar and solar-wind hybrids are likely to propel the industry further.
VEMC is a well-established solar energy company with solar power consultants in Mumbai. It is ISO 9001:2015 certified and a pioneer in the field of electromechanical engineering products, allied equipment, and services. Please contact us on +91 98199 07445 for inquiries and we will be happy to assist you.