Solar Energy Growth Drivers in India

In the era of Corona, we had bitter lessons due to our injustice done with mother-nature in various aspects and one of them is Pollution. Electricity generation from conventional sources is most polluting; wherein government has taken required steps and promoting Solar Power since year 2007. At present, India is one of the largest producers of electricity from renewable energy sources. As on 31^st March 2020, out of total electricity installed capacity in India; 35.86% is share of renewable energy generation capacity. In last year, out of total electricity generated in India, 21.27% was thru renewable energy projects.

The Government of India thru Ministry of New and Renewable Energy is playing very proactive role in promoting the adoption of Solar energy generation by offering various incentives and subsidies for Industrial, commercial, institutional, residential, farmers, village installation. These includes Capital Subsidies, Operating Subsidies in Generation based incentives, Interest subsidies, Viability gap funding, preferred funding, fiscal incentives, captive consumption permissions etc.

Government had launched National Solar Mission to promote Solar Power Generation and usage by industries and consumers, with the ultimate objective of bringing solar power in parity with fossil fuel based conventional energy.  The core objective of Solar Mission is to reduce cost of per unit solar power in India in long term, aggressive research & development to bring better efficiency equipment, large scale manufacturing goals, domestic production of critical raw materials, products, components and allied products.

The government has created a positive environment for foreign investors thru FDI route for investment in Indian solar projects, in-turn achieving lowest cost of per unit solar power generation benefited Indian consumers and power discom. The establishment of best regulatory practices thru dedicated financial institution and nodal agencies to bring lowest cost of funds into solar power generation projects has made India gain its climate control mechanism on very higher levels. This has created wider brand equity of Indian Solar energy policies across the global investor forums. Solar power in India is becoming increasingly cost-competitive as compared to fossil fuel based generation, since the prices of solar panels have declined by almost 82% since year 2007.

RBI has advised for all scheduled commercial banks including solar power projects in the categories priority sector, in addition to existing categories, making significant inroads for solar energy projects for priority sector lending. Domestic funding made easy for industrial solar projects, solar rooftop projects, residential rooftop solar projects and large scale power generation projects.

Industrialists, Entrepreneurs, Investors and Residents shall make it a habit to use solar electricity, since generation of solar power is best solution to save carbon emission. Solar is on technological advancement stage with better efficiency panels available on lower cost. We shall focus on taking benefits of government solar priority funding, subsidies, incentives, equipment funding mechanism, rooftop installation with priority etc to make India self sustainable solar power generation destination.

Written by :

CA Yogesh Birla

Director
Birla WP Management
visit us at : www.YogeshBirlaCA.Blogspot.com