How Renewable Revolution Is Giving Momentum To Decentralised Solar Power Generation
The emergence of a multitude of developers and heightened competition has positioned India as a global leader in solar power rates.
By Tanmoy Duari
India's National Solar Mission has not only met but surpassed initial expectations, marking a monumental success in the realm of renewable energy. The price of solar power from competitively bid projects stands at half that of new thermal projects, underscoring the economic viability of solar technology. The solar power generation capacity has exceeded initial targets for 2022, reaching over two and a half times the projected figures. This remarkable achievement is attributed to the strategic approach of inviting competitive tariff-based bids for long-term solar power supply contracts.
The emergence of a multitude of developers and heightened competition has positioned India as a global leader in solar power rates. The country's commitment to renewable energy is not only economically sound but also contributes significantly to reducing carbon footprints.
One of the most important outcomes of the success of the National Solar Mission is the strength of solar installations across states. It is manufactured at warehouses and requires little investment in on-demand logistics. This not only increases energy efficiency but also creates a compelling case for encouraging the decentralization of solar power generation. The demand for solar power generation in districts has become increasingly important as India seeks to triple its annual solar capacity addition. Achieving the ambitious goal of building 500GW of non-fossil fuels by 2030 requires a paradigm shift in energy production. Despite the emphasis on rooftop solar, little progress has been made.
Traditionally, governments use subsidies to encourage the acceptance of green products that are considered expensive in the market. However, the subsidy approach to rooftop solar has faced challenges. Production-based subsidies provide an incentive for manufacturers to reduce costs, as profits are guaranteed. Market size is constrained by subsidies, once implemented, consumers tend to be reluctant to invest without subsidies, resulting in liberalization that constrains market-driven demand Rooftop space constraints in cities especially the emerging housing in urban redevelopment make it even more difficult to accept rooftop solar projects with a huge loss of -end customers And the reluctance to do so adds to the challenges.
But there is a silver lining in the countryside. The Kusum program encourages farmers to use solar panels to generate electricity, especially for irrigation. Under this scheme, farmers get subsidies from the central and state governments, which cover two-thirds of the scheme costs, and the other third through loans Farmers can also sell surplus solar power to distribution companies in no time without the need for irrigation, resulting in a more sustainable pattern.
Challenges remain in converting farmers to traditional, subsidized sources of electricity and addressing connectivity and distribution issues. But offering tremendous potential for solar power in rural areas, schemes like Kusum are paving the way for sustainable energy practices in farming communities
India’s success in the National Solar Mission and subsequent rise in decentralized solar power exemplify the country’s commitment to a sustainable energy future The global shift towards renewable energy highlights India’s achievements, and solar energy has emerged as a driving force for change. As we navigate the challenges of the energy transition, it is clear that the sun shines brightly on the path to a decentralized, sustainable energy future and we have a collective responsibility to harness this potential bringing a time when every ray of sunshine contributes to a cleaner and brighter tomorrow.
(The author is the CEO, AXITEC Energy India Pvt. Ltd, a solar module manufacturer)
Disclaimer: The opinions, beliefs, and views expressed by the various authors and forum participants on this website are personal and do not reflect the opinions, beliefs, and views of ABP Network Pvt. Ltd.
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