In 2021, India achieved a remarkable milestone in the renewable energy sector, with an addition of 10 Gigawatt (GW) to its cumulative installed capacity – the highest 12-month capacity addition ever, signifying a nearly 200% year-on-year growth. Now, the nation’s cumulative installed solar capacity has surpassed 50 GW as of 28th February 2022.
Breakdown of Solar Capacity Utilization
Out of the total 50 GW of installed solar capacity, about 42 GW comes from ground-mounted Solar Photovoltaic (PV) systems, whereas only 6.48 GW is derived from Rooftop Solar (RTS), and 1.48 GW from off-grid solar PV.
The Significance of Solar Energy Growth
The recent growth in India’s solar energy capacity is a crucial step towards its ambitious target of generating 500 GW from renewable energy by 2030, where solar power is expected to contribute 300 GW. In terms of solar power deployment, it places India fifth globally, contributing almost 6.5% to the global cumulative capacity of 709.68 GW.
Challenges in Roof-top Solar Installations
Despite the substantial progress, various challenges hinder India’s full exploitation of solar energy potential. The primary issues include a lack of prioritization of Decentralised Renewable Energy (DRE), limited financing for consumers wanting to install RTS, and lukewarm responses from electricity Distribution Companies (DISCOMS).
Pitfalls in India’s Solar Power Capacity Addition
While the installed solar capacity has grown significantly, the contribution of solar energy to actual power generation has not kept pace. Key challenges include high land costs, grid integration issues, conflicts with local communities and biodiversity protection norms, and the absence of affordable power for end-consumers despite record low solar power generation tariffs.
Managing Solar PV Waste
Only the European Union is currently managing solar PV waste effectively. India could develop guidelines around Extended Producer Responsibility (EPR), encouraging manufacturers to ensure proper lifecycle management of solar PV products, including waste recycling.
Status of Domestic Solar Module Manufacturing Capacity
Domestic manufacturing capacities in the solar sector are not sufficient to meet potential demand for solar power in the country. In 2021-22, India imported nearly USD 76.62 billion worth of solar cells and modules from China alone, making Indian products uncompetitive in the domestic market. However, adopting a circular economy model for solar systems could address this issue by enabling the recycling and reuse of solar PV waste.
The Road Ahead
Innovative financial mechanisms that lower the cost of loans and lessen investment risks for lenders are essential to facilitate greater solar energy adoption. Increased awareness and affordable financing could ensure the spread of RTS across SMEs and homes nationwide. Aggregating roof spaces could also reduce overall costs of RTS installations and promote economies of scale.
Through the International Solar Alliance (ISA), established in 2015, there is a global platform for countries to collaborate on mobilising investments, capacity building, and sharing technology and finance to advance the solar energy sector. This international cooperation is likely to be a significant catalyst for growth in the future.
