Solar Energy:
- India receives ample sunlight throughout the year, making it an ideal location for solar energy production. The country has a high solar irradiation level, particularly in regions like Rajasthan, Gujarat, and parts of Maharashtra.
- The share of non-fossil fuel in the total electricity production during the FY 2023-24 (up to May 2023) was 22.45%.
- The updated Nationally Determined Contribution (NDC) submitted to the United Nations Framework Convention for Climate Change (UNFCCC), India has committed to achieve about 50% cumulative electric power installed capacity from non-fossil fuel-based energy resources by 2030.
- Further, in line with the Prime Minister’s announcement at COP26, the Ministry of New and Renewable Energy is working towards achieving 500 GW of installed electricity capacity from non-fossil sources by 2030.
- As of June 2023, a total of 176.49 GW renewable energy capacity has been installed in the country.
- India has an estimated solar power potential of 7,48,990 MW (748 GW). Till December 2023, a cumulative solar power capacity of 73.31 GW has been installed in the country.
- Meanwhile, rooftop solar installed capacity is around 11.08 GW as of December 2023.
- In terms of total solar capacity, Rajasthan is at the top with 18.7 GW. Gujarat is at the second position with 10.5 GW. When it comes to rooftop solar capacity, Gujarat tops the list with 2.8 GW, followed by Maharashtra by 1.7 GW.
Advantages:
- Renewable and Sustainable: Solar energy is a renewable resource, meaning it is inexhaustible and can be replenished naturally.
- Reduced Air Pollution: Solar energy generation produces minimal air pollution compared to conventional energy sources like coal.
- Reduced Dependence on Fossil Fuels/ Energy Security: By adopting solar energy, India can decrease its dependence on costly and fluctuating fossil fuel imports, enhancing energy security and reducing the trade deficit. This is especially important for a country like India, which is heavily reliant on coal for electricity generation.
- Off-Grid Electrification: Solar energy can be used for decentralised and off-grid electrification in remote and rural areas where traditional power infrastructure is challenging to establish. Solar microgrids and standalone solar systems can power homes, schools, and healthcare centres in rural communities, improving their living standards and promoting development. Solar PV technology can be installed at the point of consumption, significantly reducing the need for large capital-intensive transmission infrastructure.
- Job creation: The solar energy sector has the potential to create a significant number of jobs, particularly in rural and semi-urban areas. Solar projects require a workforce for installation, operation, and maintenance.
Challenges:
Solar energy has several challenges, including:
- Cost: There is limited financing for residential consumers and Small and Medium Enterprises (SMEs) who want to install Roof Top Systems. Coupled with lukewarm responses from electricity distribution companies (DISCOMS) to supporting net metering, RTS continues to see low uptake across the country.
- Issues in domestic manufacturing capacities:
- Domestic manufacturing capacities in the solar sector do not match up to the present potential demand for solar power in the country.
- Crisil’s report on the subject highlights that as on March 31, 2021, India had 3 GW capacity for solar cell production and 8 GW for solar panel production capacity. Moreover, backward integration in the solar value chain is absent as India has no capacity for manufacturing solar wafers and polysilicon.
- In 2021-22, India imported nearly $76.62 billion worth solar cells and modules from China alone, accounting for 78.6% of India’s total imports that year.
- Low manufacturing capacities, coupled with cheaper imports from China have rendered Indian products uncompetitive in the domestic market.
- Grid integration: Large solar power plants need to be integrated with the existing grid infrastructure to guarantee efficient and reliable delivery of power to customers. However, incorporating a large solar power plant into the grid can be a complex process as the plant must be able to handle fluctuations in both demand and supply.
- Environmental impact: Manufacturing and disposing of solar panels can have an environmental impact.
- Solar Waste: By the end of 2030, India will likely produce nearly 34,600 metric tonnes of solar PV waste.
- Solar cells are made of silicon, which is made by heating quartz to very high temperatures, releasing a lot of carbon emissions.
- Turning metallurgical-grade silicon into polysilicon creates the toxic compound silicon tetrachloride.
- Other Challenges:
- There have been conflicts with local communities and biodiversity protection norms.
- India has achieved record low tariffs for solar power generation in the utility-scale segment, this has not translated into cheaper power for end-consumers.
Government Schemes:
1. International Solar Alliance:
- The International Solar Alliance was launched at the United Nations Climate Change Conference in Paris in 2015 by India and France, and came into force in 2017.
- It seeks to bring together the countries which lie either completely or partly between the Tropic of Cancer and the Tropic of Capricorn for harnessing solar energy. The membership of the ISA has now been extended to UN member countries as well (presently 120+ members).
- Aim: Global deployment of over 1,000 GW of solar generation capacity and mobilisation of investment of over US$ 1000 billion into solar energy by 2030.
- Global Solar Facility (GSF): A fund formed by ISA to stimulate investments into solar power projects.
- One Sun One World One Grid: OSOWOG envisions building and scaling a transnational electricity grid to share solar energy across the globe, leveraging the differences of time zones, seasons, resources, and prices between countries and regions.
- Secretariat: Gurugram, Haryana.
2. National Solar Mission:
- Target: 100 GW of Solar Power by the end of 2022.
- Strategy: Solar Park and Ultra Mega Solar Power Projects: 40,000 MW of Solar power through 50 Solar Parks (Capacity of 500 MW and Above) + Grid-connected Roof up Solar Program: Target of 40,000 MW. Implemented through DISCOMs.
3. PM-KUSUM scheme:
- Setting up of 10,000 MW of Grid-Connected Solar and Other Renewable energy plants on Barren/Uncultivable land –> Sell Power to DISCOMs and earn Income.
- Off-Grid Areas: Replacement of diesel agriculture pump sets with 20 lakh Solar Agriculture Pumps –> Reduce the dependence of farmers on diesel and meet their irrigation needs.
- Grid-connected Areas: Replacement of diesel agriculture pump sets with 15 lakh Solar Agriculture Pumps –> Use the generated solar power to meet the irrigation needs and the excess solar power will be sold to DISCOMs.
4. Production linked Incentive scheme for manufacturing of high-efficiency solar PV Modules:
- Close to 75 per cent of India’s solar power capacity is built on Chinese solar cells and modules. Hence, the PLI scheme is expected to ensure Atma Nirbhar Bharat in the solar energy sector.
5. Pradhanmantri Suryodaya Yojana:
- The Pradhanmantri Suryodaya Yojana was announced with the target of installing rooftop solar on 1 crore houses.
- It intends to supply power to households through solar rooftop installations while also providing extra money for excess electricity output.
- Through the Pradhan Mantri Suryodaya Yojana, 1 crore families will be given access to rooftop solar energy.
- This scheme is meant to help poor and middle-income households lower their electricity bills.
Government’s previous rooftop solar programme
- In 2014, the government initiated the Rooftop Solar Programme with the goal of attaining a total installed capacity of 40,000 megawatts (MW) or 40 gigawatts (GW) by 2022.
- A watt, a unit of power, is determined as the quantity of energy utilised over time, specifically one Joule per second.
- However, this target couldn’t be achieved. As a result, the government extended the deadline from 2022 to 2026. The Pradhan Mantri Suryodaya Yojana seems to be a new attempt to help reach the target of 40 GW rooftop solar capacity.
Way Forward:
- Financial mechanisms: Governments, utilities, and banks will need to explore innovative financial mechanisms that bring down the cost of loans and reduce the risk of investment for lenders. Increased awareness, and affordable finance for RTS projects could potentially ensure the spread of RTS across the scores of SMEs and homes around the country.
- Aggregating roof spaces could also help reduce overall costs of RTS installations and enable developing economies of scale.
- Circular economy model:
- India should embrace a circular economy model for solar systems. This would allow solar PV waste to be recycled and reused in the solar PV supply chain. The International Renewable Energy Agency (IRENA) estimates that the global value of recoverable materials from solar PV waste could exceed $15 billion.
- India could look at developing appropriate guidelines around Extended Producer Responsibility (EPR), which means holding manufacturers accountable for the entire life cycle of solar PV products and creating standards for waste recycling. This could give domestic manufacturers a competitive edge and go a long way in addressing waste management and supply side constraints.
- Boost International collaboration on issues such as mobilising investments, capacity building, program support and advocacy and analytics on solar energy. Technology sharing and finance could also become important aspects of ISA in the future, allowing for meaningful cooperation between countries in the solar energy sector.