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 $5.3 billion was raised by the first half of 2018 in comparison to 2017. As a nascent industry, the Indian solar sector needs support and funding to grow. And, factoring in the growth of funding scene, this can be construed as a positive development for solar in India. However, to predict the outcome, we need to inspect the present scenario in depth.
Recent time witnessed Solar Energy Corporation of India (SECI) rising the upper tariff ceiling for its 10 GW of interstate transmission system (ISTS) connected solar photovoltaic power projects. This can be considered as a move towards the right path, factoring in lack of developer interest in recent solar projects. Although, Indian solar initiatives have earned commendation for making incredible growth trajectories (5 GW solar capacity in 2015, 10 GW in 2016 and ~24 GW in 2018), policy interventions are needed to protect and prioritize the solar industry for continued success.
Government of India’s commitment to provide ‘Power for All’ and its decision to support green energy transition, marked a new beginning for the country. With solar energy transition promising to save billions ($) in fossil fuel imports, create jobs, initiate technological growth, facilitate industrial growth, and offer the opportunity to claim the export market, developing countries like India need to quickly seize the opportunity and become a solar powered country. And factoring in India’s recent initiatives towards solar growth, we can fairly assume that the country has chosen the right path to social, economic, and industrial revolution, which will illuminate the future of more than 200 million people (who currently live without electricity). Like any industry, there are multiple challenges in countrywide solarisation in India. However, recent taxes and duties levied on growing solar industry must be considered as the biggest challenge in path to India’s most important and impactful transition.
Under the leadership of Hon’ble Prime minister Shri Narendra Modi, our government’s strategies and multi-pronged operation sequences for ‘Make in India’ initiative has given Indian solar industry hope for new opportunities. The initiative was expected to bring more investment, job opportunities, and a platform for technology upgradation in the promising industries, especially solar sector.
Make in India initiative was supposed to give a long term policy direction with large scale deployment goals, increased spending on R&D, domestic production of critical raw materials across the value chain, and to have focus in development of components and products within the country to mass manufacture and control supply chain of lucrative sectors like- Solar.