Categories: Energy

Problems ailing the Solar sector in India

In spite of the huge potential of solar power in India, the sector has not fully taken off much to the disappointment of potential investors. Given the magnitude of solar potential in India and the government policies providing it the necessary push, one would expect solar to have fully developed as a proven technology by now but sadly, this has not been the case.

This is partly due to the mismatched and untimely policies of the government that has created uncertainty in the minds of the investors. Take for example, the case of the Gujarat Urja Vikas Nigam Ltd. that petitioned the state regulator to reduce solar tariffs. Their argument- the higher profits being earned.

The move was in spite of the fact that a tariff order could be challenged within 60 days according to the rules of the state but GUVNL in this case was asking for revision after a period of three years. In the end thankfully, the CERC struck it down. It doesn’t bode well for investor confidence when the government tries to revise prices midway.

Take the case of Tamil Nadu which came up with a very low solar tariff of Rs. 5.78 kWhr and Andhra Pradesh which thought it wise to bring in a fixed tariff after the bidding process.

Given the fact that solar technology is still in its nascent stage in India, it hasn’t really reached the level where the government can withdraw necessary support. India still depends on largely imports and domestic industries have struggled to compete with global firms.

One area which is grossly under represented at present is the roof top solar which also has enormous potential. Very few states have taken the trouble to come up with a net metering policy and customers have not found any incentives for installing solar panels.

Gujarat is planning to move to solar rooftop after pioneering a novel 10 MW solar power plant on top of the Sardar Sarovar canal. Read more on it here.

 Solar projects need to be financed on a priority basis by lending institutions while ensuring that subsidy is provided in order for solar projects to remain attractive. Solar REC market has been put in place to ensure attractiveness of renewable energy sources. Read more on it here.

There have also been cases where solar projects have missed deadlines. The government needs to be gracious and not impose penalties for missing deadlines as this is a learning experience for both the authorities and the investors.

Finally, the lack of a reliable database also serves as a handicap. A reliable current database that details DNI for all parts of the country needs to be put up in the public domain for better project preparedness and planning.

Puskar Pande

Editor in chief @GreenCleanGuide.com

View Comments

Published by
Tags: Solar

Recent Posts

Types of Cinnamon and the differnece between true Cinnamon and Cinnamomum tamala

Did you know that cinnamon comes from the inner bark of a tree? Yep! When it’s first harvested, it’s a light color, but as it…

2 months ago

Regenerative Agriculture: Does It Make Sense in the Indian Context?

Regenerative agriculture is an approach to farming that focuses on restoring soil health, enhancing biodiversity, and improving ecosystem functions. Unlike conventional farming, which often depletes…

3 months ago

What Are Artificial Reefs?

Natural coral reefs and underwater habitats have been damaged by pollution, overfishing, and climate change. To help restore marine life, people create artificial reefs using…

4 months ago

Energy Attribute Certificates (EAC): A Key to Tracking and Promoting Renewable Energy

As the world continues to transition toward cleaner energy sources, the need for systems that can track, certify, and validate the renewable origin of electricity…

4 months ago

Here’s why “Blue Carbon” maybe the missing link in the crucial fight against climate change

The carbon that marine ecosystems absorb and store is known as "blue carbon." The well-known idea of "green carbon," which describes the carbon retained by…

4 months ago

Unlocking Soil Potential: A Farmer’s Guide to Soil Testing in India

Introduction Soil testing is a crucial practice in modern agriculture. It assesses soil health, nutrient levels, and pH balance, enabling farmers to make informed decisions…

5 months ago