Solar Power Projects

Indian has huge potential for Solar energy There are about 300 to 330 clear sunny days in most parts and Solar energy (direct irradiance) potential for north India is 5-7(kWh/m2/day). So in terms of hours of sunlight availability we have an advantage over USA, European Countries, China, Japan etc. This means a solar system installed in India will produce more electricity in comparison to USA, European Countries, China, Japan etc. So for a country which is blessed by the bountiful Sun, it would be unwise if we do not make the best use of it.

  • In India, as the economy is expanding, the demand for energy is growing exponentially. Further the dependency on finite fossil fuel needs to be brought down because its usage of fossil fuel poses a significant threat to the environment and if not checked will severely affect the climate. Although, energy sector in India has achieved the high priority; however, the crisis still prevails in country both in terms of energy requirement and peaking availability. The average peak power deficit over the last 7 years ending in 2013 was more than 10%. In 2016 the deficit will rise up to 25%. Thus, every state is aiming at self-sufficiency in power production to meet the increasing demand-supply gap.
  • To address these issues, the Prime Minister of India released the National Action Plan for Climate Change (NAPCC) in 2008 under which is the prestigious Jawaharlal Nehru National Solar Mission (JNNSM) which aimed at setting up 20 GW of solar power by 2022 in a phased manner. The NAPCC also envisages the electricity regulatory commissions in the country to purchase a percentage of the total grid based power from renewable sources setting an obligation on the electricity commissions called Renewable Purchase Obligation (RPO).
  • To further support the mission, states like Gujarat, Rajasthan, Karnataka, Tamil Nadu, Andhra Pradesh came out with their individual state policies to fulfil their RPOs/SPOs promoting large-scale deployment of solar power plants. Simultaneously Central Electricity Regulatory Commission (CERC) introduced Renewable Energy Certificates (REC) mechanism for Solar Energy, which allowed obligated entities to meet its obligation by purchasing the RECs.
  • The government is taking significant strides in improving the transmission infrastructure and providing incentives like waiver of Electricity Duty, Wheeling and Transmission charges, Cross Subsidy Charges etc. to attract interest. Accelerated Depreciation (AD) benefit under Income Tax Act being the most important of them, has managed to draw a lot of investors to develop green power where Developers can claim up to 80% Depreciation on their solar power investments in the first year.
  • Various roof top schemes have been proposed addressing the concern of space shortage. Subsidies are announced by State and Central Government to increase the usage of solar power at individual levels. The government is also taking a lot of initiatives in setting up micro grids to electrify remote areas through solar power.
  • Currently three fourth (More than 70%) of the electricity supply relies mostly on environmentally unsustainable fuels like coal. Moreover, it is expected that the “cost of generation” from conventional sources (Coal & Fuel) will increase @6% per annum due to increase in raw material prices, increase in cost in setting up a plant, increase in maintenance cost and increase in salaries of the workers in the power plant with time.
  • Solar Power also proves to be cheaper in the long run from a large scale megawatt power plant than the cost of power from the grid. The power can cost between Rs. 2.25/- to Rs. 3.75/- per unit depending upon the size of the solar power plant.
  • The whole world is getting affected by climate change. The over-exploitation of coal and fuels is the major cause of pollution in the entire world. Global warming and Ozone layer depletion are having deleterious effect on earth’s ecosystems leading to Global Climate change. The main cause of climate change is the toxic greenhouse gases emission due to burning of fossil fuels in thermal power plants, industries etc. While in the atmosphere, these greenhouse gases capture more and more heat and when this goes beyond a certain limit it’s dangerous for life on earth and we are about to reach that limit. We need power for survival, Industrialization and county’s growth but the question is how to produce power without affecting environment. The best answer is “RENEWABLE ENERGY”.
  • Among all the renewable energy sources, Solar Energy is a unique option which is capable of being used from watts to Megawatts scale, while others have limitations with regards to size, space, location etc.
  • India has vast population, high irradiation, the growing energy demand and power deficit, limited access to fossil fuels and the large number of un-electrified villages, so it becomes one of the best markets for solar power.
  • Reduce Import Dependence: Almost one-thirds of India’s power is sourced from imported commodities such as foreign coal and diesel. With rising problems over Coal production in India and ever-rising oil prices – the current rate of increasing imports to reduce the energy deficit is not only unsustainable but also harmful to economic factors such as the Current Account Deficit that leads to rising inflation and lower purchasing power of the Indian currency. Almost 3/4ths of all diesel used in generation is imported in our country. Solar can be an important weapon against this rising trends of imports and is poised to replace conventional sources of energy as India’s solution to its power crisis.
  • A shift from centralized, fossil fuel based power sources to decentralized, renewable sources like solar is then the best way to overcome these hurdles, while achieving other substantial benefits like the creation of jobs and independence from other states for energy supply.