Future potential of the solar energy in India

24/1/2015

India is country with around 300 sunny days in a year with average solar insolation levels ranges from 4 kWh/m2/day to 7 Kwh/m2/day (Please read The solar insolation levels of top 5 states (solar PV installed capacity wise) of India). Solar power is considered the best option for fulfilling our energy requirements.

The current scenario

We import 80% of our crude oil needs from abroad. Although the crude oil prices have slashed by 60% since June 2014 and this has given some respite to Indian economy and reduced the burden of the fiscal deficit. This is not the permanent solution to our continuously increasing energy demands. There is an urgent need to diversify our energy portfolio by including solar power into it. India has potential to generate 750 GW of energy from sun. If Indian utilizes 3 % of its total waste land, (a recent study conducted by National Institute of Solar Energy of India.) this can be real booster to cater the energy demands of India. So, the investment in the solar technology is the need of the hour for India (Please read "The investment in solar roof is better than my savings bank account return").

Let us do the Strength, Weakness, Opportunity and Threat analysis (SWOT analysis) in implementing the solar energy scenario in India.

Strengths

The 300 sunny days in year gives a green signal for the implementation of the solar power. India receives 4-7KWHr of the solar radiation per square metre of area.
India is a vast country. Its desert area of Rajasthan is a boon in disguise. This barren and sunny land can be utilized to install solar power projects (Please read "The solar PV growth in India" and "9 largest solar power plants in India").
Most of the population in India lives in villages, where supply of electricity is limited. Also in mountainous areas it is very difficult and a costly affair to supply electricity through normal grid supply. Here solar power can be implemented in any terrain.
Solar power is environment friendly & pollution free. If we look at the cost of electricity generated by the fossil fuels and add up the cost of the health & environment hazards, we will find that cost of generating electricity from solar power is very less (Please read "What is the average cost of solar roof in India?")
Solar Power is renewable.The fossils are non-renewable in nature and cause pollution to the environment. The Solar power is best option to cater our increasing demand of energy.
The gestation period of setting solar power plant is far less than that of its non-renewable energy source counterpart of the same capacity. The maintenance cost is relatively low.
The fast development in technology is continuously making it cheaper.

Weaknesses

The solar power is costly as compared to its non-renewable energy source counterpart. The initial set up cost is large for the residential set up.
The energy source in not available during night. Extra cost for battery backup is required for during night.
There is lack of awareness about solar among common people in India. The solar awareness programs are very less if compared with the size and the population of India.
There are inadequate distribution and service network across India.

Opportunities

The population is huge and the area is vast. There is great demand for the energy and the space is also available. There is fair and sufficient demand–supply gap.
Solar power is best suited for the remote locations where the normal grid supply can be a costly affair.
The solar power is capable to generate huge employment entrepreneurship opportunities (Please read "A small business idea: How to start a solar lantern business?" and "How to start solar power installation business for residential sector?").

Threats

There is threat to the indigenous manufacturers because their cost of manufacturing of solar panels is higher as compared to international counterparts.
Even though solar power holds the highest share among its renewable counterparts but there is stiff competition amongst them. Research is going on in wind power, hydro-power, bio-fuel power and Geo-thermal power to make them technologically viable and financially feasible.
The government’s subsidy on the conventional energy source giving solar power a tough competition in terms of pricing.

The road ahead

It is difficult to compensate the ever increasing energy demand of India with the limited fossil fuels. Obviously, there is urgent and immediate need of an energy source which is reliable, inexhaustible and secure. The researchers are trying to boost the performance of solar cells using nano technology (Please read "How Nano technology can boost the performance of solar cell" ), this will also lowers down the cost of solar panels. The MNRE (Ministry of New and Renewable Energy) is supporting the solar power through National Solar Mission. The Government of India has set up a target to install 100 GW by 2022 through the investment of Rs. 6.3 trillion($100 billion) in 5 years. This will create huge employment opportunities in this sector.

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