Release Date: 13-Oct-2012
India is blessed with immense potential for solar energy as most of the states have more than 300 sunny days and the specific average annual solar energy yield in India is estimated between 1700 – 1900 kWh per kWp. Though, India has potential to generate 50,000 MW of energy from solar, till now it plays almost non-existent role in the Indian energy mix. Indian solar power market is expected to grow significantly in the next ten years primarily driven by rising power demand, increasing fossil fuel prices and government incentives such as introduction of ambitious National Solar Mission (NSM), various state level initiatives, solar energy quotas for utilities, as well as by falling international technology costs. Government is promoting an eco friendly mean for power generation to achieve sustainable growth while marching towards energy security for the nation and enhancing India’s contribution to meet the global challenge of climate change.
Indian solar power market is primarily driven by the Jawaharlal Nehru National Solar Mission (JNNSM) of government of India. As per this mission government has targeted to install over 22,000 MW of solar power by 2022. Additionally, to promote solar energy market Indian Government has introduced a number of incentives such as production based subsidy along with feed-in-tariff of about INR 15/kWh for solar PV and solar thermal projects commissioned after March 31, 2011 for up to 25 years. To promote solar power installation in small and rural areas government has introduced a remote village electrification programs, which receives higher levels of subsidies.
Indian Government has been trying to encourage the private sector to invest in solar power and equipment space in India through various Central and State policies and promotional schemes.
Incentives for solar energy production are being offered in terms of feed-in-tariff (FiT) support, solar specific, Renewable Purchase Obligation (RPO), Generation Based Incentives (GBI) and long term PPAs. Incentives are also being granted in the form of preference to indigenous production, custom and excise duty concession, SEZ tax breaks, access in solar parks, lower interest rates, refinance options, R&D ecosystems and HRD support.
For more information visit “India Renewable Energy Sector Analysis”