China’s policy shift, mega tender cancellations and policies levying taxes and duties on solar industry in India, feed-in-tariff cut in Japan have made 2018 the year of uncertainty for solar. However, surveys suggest that global PV solar installations will see nearly 18% rise in 2019, finally reaching and may be surpassing 100 GW capacity addition. Although, at the end of 2019, we would still be far from ‘0’ emission future, rising PV installation growth and emergence of new markets within developing countries will get us closer to that goal.
Indian solar sector showed incredible progress in recent years by becoming a 30,000 crore industry. But, in Q1 2018 corporate funding within the solar industry fell by 65%. Fortunately, the numbers have significantly increased by 15% as 2018 comes to a close. Nearly $5.3 billion was raised by the first half of 2018 in comparison to 2017. As a nascent industry, the Indian solar sector needs support and funding to grow. And, factoring in the growth of funding scene, this can be construed as a positive development for solar in India. However, to predict the outcome, we need to inspect the present scenario in depth.
As one of the fastest growing economies, India decisively opted for solar development, understanding its potential to lift the country out of financial, social, and industrial darkness. The announcement of targeting 100 GW solar energy by 2022 evidently created an environment of urgency and brought forth a plethora of opportunities for industrial development. As a result, our country quickly became the second most attractive renewable energy market in the world. However, Government of India’s decision to impose Safeguard Duty on solar imports stands to undo the growth India accomplished through enhancing domestic solar manufacturing capacities. Many in the industry argue that the new policy is completely opposite of what our Solar mission and Make in India initially stood for.
Renewable energy investment ($ 286 bn) surpassed investment in coal and gas ($ 130 bn) in 2015-16 and estimated to amount to $333 bn in 2018-19. Not just the developed countries, but developing countries like Brazil, Philippines, Mexico, Turkey, Chile, Africa, and India are focusing on renewable energy to phase out fossil fuels. Solar has obviously become the world favourite in a short span of time, showcasing its feasibility, low maintenance, prolonged lifespan and easy to install attributes.
The Looming Threat
It is important to note that oil and gas investment in 2016 was close to $ 522 bn, although it was down from 2015’s investment ($ 595 bn), it was still higher than renewables. Therefore, it is apparent that to push out fossil fuels, which is not just an option but a necessity now, the world would require more effort and aggressive investment initiatives.