Home System concept Will India achieve its 2030 solar mission goal?

Will India achieve its 2030 solar mission goal?

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With approximately 150.54 GW of renewable energy established in 2021 (according to the Department of Energy’s November 2021 report), there is another 350 GW commitment to be met by 2030. Solar is expected to contribute approximately 55% of the global installed capacity of 500 GW bringing the figures to around 280 GW. However, despite being the third largest solar energy market in the world, India still has a long way to go when it comes to the global solar landscape.

Challenges Faced by the Indian Solar Industry

As India seeks to achieve its goal as an emerging global leader on the solar front, it must address and resolve imports of important components such as solar cells, modules and solar inverters, on which the Indian solar industry depends significantly. . Due to this over-reliance on imports, the industry ends up paying huge sums of money every year. According to the data, in the first 9 months of 2021, India imported solar wafers, cells, modules and inverters worth $1.97 billion.

Government of India to meet the challenges

Import Duties: (April 1, 2022) The Indian government has taken several measures to promote local manufacturing as part of its “Make in India” mission and one of these measures imposes a 40% duty on import of solar modules. This will promote domestic manufacturing

IPL diet: In a bid to boost India’s manufacturing capabilities and exports, the Production Linked Incentives (PLI) scheme was introduced. Under the provisions of this program, manufacturers receive support for the establishment of integrated manufacturing units of high-efficiency solar photovoltaic modules and their sales.

BIS certification: As solar products are required to be BIS certified, benchmarking of domestic manufacturers will help establish superior quality parameters that will also benefit customers.

ALMM: The MNRE also introduced the Approved List of Models and Manufacturers (ALMM) of solar PV cells and modules with the aim of ensuring the reliability of solar PV manufacturers and protecting the interests of customers.

The above actions will help India become one of the world’s leading suppliers of solar products, while meeting the country’s national requirements.

Challenges faced by customers

Despite a major push from the government, rooftop solar installation in India has not achieved the desired momentum in India, especially due to lack of lucrative return on investment as solar power prices rise . Two major obstacles are:

The overall cost of ownership: With cost and GST increasing by 25% and 7% respectively over the past year, there is dampness in the residential rooftop segment and cumulative installs are less than 5 GW so far.

Underdeveloped DISCOM ecosystem: The current DISCOM ecosystem in India is built around thermal and in moving to solar, there is fear of cost competitiveness coupled with T&D losses impacting profit margins. Therefore, the traditional net metering system in solar installations was not considered a welcome move, however, the concept of “gross metering” is supported by DISCOMs. In the gross metering system, when a consumer buys electricity from the national grid through DISCOM, the electricity charge per unit is say Rs. 7.5 per unit and when a consumer sells the electricity from the rooftop solar, customer only gets 50% between Rs. 3-4 per unit.

This will have a direct impact on ROI payback times for customers, which range from 7-8 years to a few more years. While the owners must find alternatives to reduce their electricity bill.

Trends and how solar companies are helping to boost the Indian solar industry?

With solar panels and solar systems becoming more efficient compared to their previous generation, customers want to invest in technology that allows them to get more output per square meter of space they have. There is therefore a constant need to invest in the research and development of a more efficient solar ecosystem involving energy storage systems. Like the bifacial shark panels that generate electricity from the front and back of the solar panel.

Customers have much higher power consumption at dawn and dusk, which demands high efficiency and sustainable energy systems in an off-grid solar system. Despite all the challenges, energy storage trends will gain popularity in India in countries like USA, Australia, etc. The trend of consuming solar power stored in lithium battery during day and night is gradually becoming popular in India, so solutions like deeply integrated solar batteries like CAML battery will become the power carrier for these customers.

In this scenario, Faridabad-based start-up Loom Solar is working consistently to boost the Indian solar industry with its new business model in which it encourages new entrepreneurs to enter the solar market. With their new business model, “The Solar Entrepreneur”, they plan to tap into the untapped market through their solar franchise which is backed by multi-layered partner support with high returns at very low investment.

As India makes great strides towards realizing its solar dream, Loom Solar and its smart methodologies will continue to provide India’s solar industry with much-needed assistance for “Mission 2030”.

Disclaimer: This is a company statement. No HT journalists are involved in the creation of this content.

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