Solar Power Industrial Capacity

enhancement in India

BY C2
Apoorva R Wakodikar (21PGDM106)
Behara Sai V Subba Rao (21PGDM110)
Hazari Ishar Alam (21PGDM117)
Jitesh Srivastava (21PGDM120)
Sankaranarayanan D (21PGDM130)
Shaurya Verma (21PGDM160)
Prakriti Joshi (21PGDM155)
Contents:
Introduction
Policy changes and their implications
Comparative analysis
Comments on likely future changes and direction in
which events are moving
Link the topic with Covid-19 impact
Managerial Implications
Limitations
Recommendations
Key Takeaways
Conclusion
Introduction:
India is heavily dependent on fossil fuels for its energy needs. Most of the power
generation is carried out by coal and mineral oil-based power plants which contribute
heavily to greenhouse gases emission.
Solar Power, a clean renewable resource with zero emission has got tremendous potential
of energy which can be harnessed using a variety of devices.
With recent developments, solar energy systems are easily available for industrial and
domestic use with the added advantage of minimum maintenance.
About 5,000 trillion kWh per year energy is incident over India's land area with most parts
receiving 4-7 kWh per sq. m per day and the sunniest parts are situated in the south/east
coast, from Calcutta to Madras. India has huge solar potential.
Also, solar is the most secure of all sources, since it is abundantly available and even a
small fraction of the total incident solar energy (if captured effectively) can meet the entire
country's power requirements.
Current Installation
Top five states for solar power production in India:
1. Karnataka — 7,100MW
The south-western state of Karnataka heads India’s list of states producing solar energy. With a total
installed solar power capacity of about 7,100MW. Karnataka is way ahead of the other states.
2. Telangana — 5,000MW
The southern state of Telangana comes second in terms of solar power capacity in India. Telangana’s total
installed solar energy has reached about 5,000MW – a figure it had set for itself to achieve by 2020.
3. Rajasthan — 4,400MW
Rajasthan has a higher potential for solar power generation than any other region in the country – but it still
trails behind Karnataka and Telangana. In the next three years, during the project’s first phase, 10,000MW of
solar power capacity will be installed in the state.
4. Andhra Pradesh — 3,470MW
Andhra Pradesh claims to be India’s second-largest state in terms of renewables, possessing about 10% of
the nation’s clean energy capacity.
5. Gujarat — 2,654MW
Out of Gujarat’s current total renewable energy production of 9,670MW, about 2,654MW is solar energy.
The state is planning to boost its renewable energy capacity to 30,000MW by 2022.
Covid-19 Impact:
In India, it has exposed the need for reliable health care and infrastructure to deliver lifesaving
refrigerated vaccines.
As the country also contends with seasonal heat waves and power shortages, the role of
renewable energy – particularly solar energy – in meeting those challenges has come into
sharp focus.
India’s rural communities where the pandemic is wreaking havoc, reliable electricity can mean
access to hospitals and medicines: quite literally, the difference between life and death.
COVID-19 has caused major ructions across the energy sector and threatens to undermine
efforts to accelerate clean energy transition.
Wide-scale suspension of economic activity, supply chain disruption and employee health
concerns have created supply and demand shocks across the energy sector.
Solar sector was estimated to add record capacity of 130-135 GW in 2020. However, the
pandemic has caused several operational and financial setbacks bringing down the estimates
by 20% to around 105 GW.
Covid-19 Impact:
National Solar Mission
Launched on 11th January 2010
A major initiative by GoI with active participation from States to promote
ecologically sustainable growth while addressing India’s energy security
challenges.
It constitutes a major contribution by India to the global effort to meet the
challenges of climate change.
The Mission’s objective is to establish India as a global leader in solar
energy by creating the policy conditions for solar technology diffusion
across the country as quickly as possible.
The Mission targets installing 100 GW grid-connected solar power plants
by the year 2022.
Govt Schemes

Solar Park Scheme

VGF Schemes
CPSU Scheme
Defence Scheme
Canal bank & Canal top Scheme
Bundling Scheme
Grid Connected Solar Rooftop Scheme
Allocation in Union Budget 2022-23
The target for installed solar capacity by the end of the decade is 280 GW.

The Budget took a step in that direction by allocating an additional Rs 19,500 crore through a
Production Linked Incentive (PLI).

The Union Budget for 2022-23 has provided for a Budgetary allocation of Rs 3,365 crores for
the solar power sector, including both grid-interactive and off-grid projects, a 29 per cent
increase over previous year.

Implementation of Phase-III of the off-grid solar PV programme, which covers installation of

three lakh solar street lights, distribution of 25 lakh solar study lamps and installation of solar
power packs of total aggregated capacity of 100 MWp.

In addition, under AJAY Phase-II over three lakh solar street lights would be installed. Further,
20 MW projects of Concentrated Solar Thermal will be undertaken
Managerial Implications
Potential Reduction In Monthly Electric Bills:
Solar panels can be installed on top of most any building rooftop. This solar energy can potentially reduce your
electric bill to save thousands, even tens or hundreds of thousands, depending on the size of your system.
Community Outreach:
There is no better “show and tell” for customers than solar panels. Their visibility gives businesses an
advantage because solar is both a green initiative as well as a win for the community since every building with
solar panels is taking a step to lessen the burden on the grid.
Protection During Power Outages:
This solar benefit may seem obvious, but it has multiple layers of success.
Tax Credit:
The federal solar tax credit allows companies to deduct up to 26% of the cost of adding a solar panel system to
their buildings from their taxes.
State And Municipality Tax Credits:
Some states offer a state income tax credit for businesses
Long-Term Property Value And Marketability For Resale:
Many cities and states have initiated property tax exemptions on solar, so the added value of solar panel
installation will not be counted on property tax fees.
Comparative analysis
Comparative analysis
Comparative analysis
Comparative Analysis
Over the past decade, a substantial increase in the installed capacity of solar power has been seen on each continent.

A categorical distribution of the installed capacity showed that the growth rate in India and China was the highest,
97.1 and 85.9%, respectively.

In the global share of installed capacity, China contributed 35.9%, and the USA contributed 11.7%, which is the largest
contribution among any country.

Among various regions, Asia Pacific contributed 59.7%, followed by Europe, which contributed 23.70%, indicating
substantial infrastructure has been built in the Asia Pacific and Europe over the past decade for solar-based energy
production.

Currently, the cost of solar energy is reducing with the advancement of technologies and increased production. The
massive cost reductions in the last decade are a significant reason for solar renewable energy rapidly transforming the
global electricity mix.

The industries involved in solar cell production are some of the fastest-growing industries, and growth in solar cell
production is enormous.
 Future of Solar in India
India is targeting about 450 Gigawatt (GW) of installed renewable energy capacity by 2030 – about 280 GW
(over 60%) is expected from solar. As of September 2021, India had 101.53 GW of renewable energy capacity
and represents ~38% of the overall installed power capacity.

1. Geographical Advantage
Because it falls in the tropical region, it receives generous amounts of solar radiation all through the year
amounting to nearly 3,000 long hours of sunshine.

2. Upcoming Solar Projects in India

The states of Andhra Pradesh, Gujarat, Madhya Pradesh, Rajasthan, Punjab, Haryana and Maharashtra have
incredulous amounts of potential to tap solar energy, owing to their strategic location.

3. Highly Advantageous at Cheap Cost

Solar panels usually have a lifespan of around 25 years and are definitely worth the investment in every respect.

4. Employment Prospects
The persistent problem of unemployment in India will definitely also get better and the unemployed youth will be
able to see the light of day with the creation of more and more jobs.
Future of Solar in India
The Ministry of New and Renewable Energy (MNRE) has set an ambitious target to set up renewable energy
capacities to the tune of 227 GW by 2022, of which about 114 GW is planned for solar.

India’s renewable energy sector is expected to attract investment worth US$ 80 billion in the next four years.

It is expected that by 2040, around 49% of the total electricity will be generated by renewable energy as more
efficient batteries will be used to store electricity, which will further cut the solar energy cost by 66%.

Renewable energy will account for 55% of the total installed power capacity by 2030.

As per the Central Electricity Authority (CEA) estimates, by 2029-30, the share of renewable energy
generation would increase from 18% to 44%, while that of thermal is expected to reduce from 78% to 52%.

The Government of India wants to develop a ‘green city’ in every state of the country, powered by renewable
energy. The ‘green city’ will mainstream environment-friendly power through solar rooftop systems on all its
houses, solar parks on the city’s outskirts, waste to energy plants and electric mobility-enabled public
transport systems.
Limitations:
Land Scarcity:
Per capita land availability is a scarce resource in India.. The amount of land required for utility-scale
solar power plants — currently approximately 1 km² for every 20–60 megawatts (MW) generated
could pose a strain on India’s available land resource.

Scarcity of resources:
The Indian solar industry relies heavily on imports of important components such as solar cells,
modules and solar inverters. According to the Indian government’s data, in 2019-20, India imported
solar wafers, cells, modules and inverters worth $ 2.5 billion.

Low domestic manufacturing capacity:

The domestic manufacturing of solar PV cells/modules is behind due to reasons such as lack of
manufacturing chain and skilled workforce and higher cost of production.
Limitations:
High Capital Cost:
The estimated unit cost of generation of electrical energy from solar PV and solar thermal route is in
the range of Rs. 12- 20 per kWh and Rs. 10-15 per kWh respectively in India which is 4-5 times
costlier than the electrical energy obtained from conventional fossil fuels.

Manufacturing Process:
Solar PV cell manufacturing technology is an intensive process that needs high expertise and know-
how. It is challenging for new entrants to replicate the success of companies having a long standing
in the solar PV market.

Waste Products:
Some of the raw materials, such as cadmium, used for producing solar PV cells are hazardous and
other raw materials like plastics used for the packaging of the cells are non-biodegradable, thereby
disposal of the same is a challenging process.
Key-takeaways:
Solar energy is becoming an increasingly cost-competitive alternative to
fossil fuels.
Solar energy is a sustainable energy source, has a low environmental
impact, and promotes energy independence.
On the other hand, it is limited by how long the sun is out, may cause a
scarcity of materials, and contains hazardous materials similar to
electronics.
Pricey disadvantages of solar energy may be rendered negligible by
technological advances that increase efficiency and storage capacity.
Increasing the incentives for the development of solar energy may be
worthwhile.
Recommendations
Grid Integration:
The grid integration of solar and energy storage and in systems where they are
compatible has great potential.

Perovskite cells can reduce costs dramatically compared to solar floor cells.
They’re really very new on the scene and were mostly used in solar cell
concepts less than ten years ago.

Flexible Systems:
Look for using flexible platforms for growth and moving towards devices that
allow us to roll up solar cells and unroll them on the go
Conclusion
Ten years ago, solar power was non-existent in India. Now, the country is investing more in
solar power generation than coal. But the journey has been far from simple. India is a vast
and diverse country, with many remote villages with varied levels of development or
modernization. Solar energy has proven to be beneficial at local and national scales, able to
reach remote areas at varying scales depending on the energy needed. It appears a simple
solution to the global energy demand, and a sustainable one too.

Nevertheless, India still has many challenges in the journey to sustainable energy. Along
with many countries the COVID-19 pandemic has damaged India’s economy, making
investment in relatively ‘new’ technology unlikely and far riskier. Despite this, there is
always hope. In the brief period of growth, India has become a world leader in solar energy.
India has proven that with time and investment in sustainable technology, a substantial
difference can be made.
References
www.mnre.gov.in
www.energy.economictimes.indiatimes.com
www.forbes.com
www.ibef.org
www.solarrooftop.gov.in
www.pib.gov.in