Challenges and Opportunities in the Solar Energy Market
Ravinder Tanwar is the Chief Operating Officer at Websol Energy System Limited. With over 30 years of experience, he has previously served as GM of Business Development at Finar by Actylis and GM at GDPL. Ravinder has also led operations at Websol Energy System Limited and worked at RFCL Limited in manufacturing and technical roles. He is an IIT Delhi alumnus and brings extensive expertise in operations, business development, and leadership.
In the recent interaction with M R Yuvatha, Senior Correspondent, siliconindia, Ravinder Tanwar shared his insights on the Challenges and Opportunities in the Solar Energy Market.
Industries, which are currently using fossil fuels for electricity, are increasingly adding solar and wind energy to their energy mix. Solar thermal is used for boilers, while solar PV provides electricity. Soon, solar energy will also play a key role in generating Green Hydrogen, an ideal energy source for vehicles and electricity generation. Companies in carbon-neutral areas, like data centers, metro railways, and pharmaceutical manufacturing, are now using solar energy to maintain sustainability. Industries are adopting open-access electricity to cut down electricity costs and to address climate change. Open-access electricity is a policy that allows consumers to choose their energy supplier. The Electricity Act of 2003 has introduced this policy in India, promoting competition and transparency in the electricity market.
Increasing Investments on Solar Sector Growth in India
The growth of the solar industry depends on three major pillars, finance, availability of land, and availability of solar modules at the right price. Finance cost plays a very critical role in the growth of solar energy in India and globally. Electricity generated from Solar PV plants is directly proportional to the cost of finance. Cumulative solar PV power installation by 2024 the October end is 92.12GW, and ground-mounted solar plant is 71.05GW. In the current financial total installation till Oct 2024, 10.3 GW and expected to be reached by 24-26GW. Many global VC and Private equity companies have invested highly in setting up solar utility power plants
Major investment in renewable energy in India is utility-scale power plant, while investment in the manufacture of solar PV cells and modules is low. The government PLI scheme created a manufacturing base for silicon wafers, cells, and Modules and PM Surya Ghar Yojana created the demand for solar modules and inverters.
Electricity generated from Solar PV is half the cost of electricity generated from coal, in Q2-24 major tenders' quoted price was around Rs 2.70 per KWH Electricity generated from coal is about Rs 4.26 per KWH, The following are major factors that impact the project cost and the electricity cost:
• Finance cost
• Land cost
• Solar Module efficiency and cost
The finance cost in India is higher compared to China and other developed countries so this impacts the project and electricity costs.
Waste Management Strategies for Solar Energy Challenges
Solar panels have a useful lifespan of 25 to 30 years, depending on the technology and module. However, many panels are decommissioned earlier due to factors such as degradation from extreme weather conditions, handling, transportation, and component wear. By 2030, the waste generated from solar panel decommissioning is expected to reach around 340 kilotonnes, and this amount could triple if early replacement with higher efficiency modules becomes common. As of October 2024, the total cumulative solar PV installation in India reached 92.12 GW, including 71.05 GW of ground-mounted and 14.45 GW of grid-connected rooftop PV.
Number of pilot plants are operational to develop technology that can scale up and address future requirement. To extract metallic components like silver , copper chemical technology is ideal while to extract Aluminium , silicon and glass mechanical technology is operation .
Crystalline silicon (C-SI) and thin-film (mainly Cadmium telluride CdTe) are mainly two technology-based modules used in India. Crystalline silicon Module share total installation in India is more than 95% , the waste generated from crystalline silicon (C-Si) modules are aluminum, glass , silicon, silver, and copper metal. The recovery rate depends on the type of technology and capacity of the recycling plant. All materials recovered after recycling can be used as raw material for further manufacturing.
Financing Strategies to Ensure Solar Energy's Financial Viability
To support the solar PV industry to achieve financial viability, the government implemented a range of financing mechanisms, like a feed-in Tariff, subsidizing the project cost, like PM Surya Ghar for domestic electricity, PM Kusum for water pumping, and off-grid power plants, etc. For silicon, ingots, wafer, cell and module manufacturing scheme like PLI, Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS)
Achieving financial viability for utility-scale solar plants and manufacturing requires a combination of government support, regulatory frameworks, and innovative business models. Current funding options for solar projects include venture capital (VC), private equity, public funding, debt from renewable energy financial institutes, and joint ventures with foreign partners. Development banks like IREDA also provide project financing.
The government should offer low-interest loans, tax incentives, and direct subsidies to promote solar power plants in remote areas and support R&D for advanced solar cells. The PM Surya Ghar and PM Kusum schemes, which aim to add 30GW and 32GW respectively, are examples of how subsidies reduce project costs for end users. Additionally, promoting green bonds for solar projects and long-term power purchase agreements (PPAs) can help reduce market price risks for operators.
Impact of Solar Energy in India and Key Technologies
Solar energy has significantly impacted urban and rural lives by enhancing quality of life, reducing environmental impact, and creating jobs in both organized and unorganized sectors. It has improved education and the economy by enabling longer work and study hours. Solar initiatives, such as solar pumping under PM-KUSUM and rooftop solar systems, have generated employment opportunities in rural areas and supported businesses and startups. Additionally, solar rooftops help millions save money by offsetting rising electricity costs.
As a clean energy resource, solar power generates electricity at the consumption site. Decentralized generation enables electrification in areas without grid access, such as islands like Port Blair, where NTPC installed solar plants. Off-grid and hybrid solar systems provide reliable electricity, improving healthcare in remote areas by powering vaccine storage, operating medical equipment, and supporting emergency medical services.
High-efficiency bifacial solar modules, such as those using PERC (Passivated Emitter and Rear Contact) and TOPCON (Tunnel Oxide Passivated Contact) technologies, are ideal for utility-scale solar plants. These modules are highly reliable, offer a lifespan of 25–30 years, have low degradation rates, and provide high efficiency with favorable temperature coefficients.
Looking Ahead
At COP26 in Glasgow, PM announced that India would achieve 50% of its energy requirements from renewable energy by 2030, and achieve net-zero emissions by 2070. Development of Renewable energy solar and wind is a part of the government of India vision to bring clean and affordable energy within the reach of all, achieve social equity, and address environmental and sustainability concerns. Developing renewable sources, particularly solar PV has already put India on an energy transition path with a cleaner environment, energy independence, and a stronger economy. Recent policies from the government on utility solar power plants, solar pumps, and rooftop solar systems in India have accelerated solar PV deployment and met the climate change mitigation goals.
In the recent interaction with M R Yuvatha, Senior Correspondent, siliconindia, Ravinder Tanwar shared his insights on the Challenges and Opportunities in the Solar Energy Market.
Industries, which are currently using fossil fuels for electricity, are increasingly adding solar and wind energy to their energy mix. Solar thermal is used for boilers, while solar PV provides electricity. Soon, solar energy will also play a key role in generating Green Hydrogen, an ideal energy source for vehicles and electricity generation. Companies in carbon-neutral areas, like data centers, metro railways, and pharmaceutical manufacturing, are now using solar energy to maintain sustainability. Industries are adopting open-access electricity to cut down electricity costs and to address climate change. Open-access electricity is a policy that allows consumers to choose their energy supplier. The Electricity Act of 2003 has introduced this policy in India, promoting competition and transparency in the electricity market.
Increasing Investments on Solar Sector Growth in India
The growth of the solar industry depends on three major pillars, finance, availability of land, and availability of solar modules at the right price. Finance cost plays a very critical role in the growth of solar energy in India and globally. Electricity generated from Solar PV plants is directly proportional to the cost of finance. Cumulative solar PV power installation by 2024 the October end is 92.12GW, and ground-mounted solar plant is 71.05GW. In the current financial total installation till Oct 2024, 10.3 GW and expected to be reached by 24-26GW. Many global VC and Private equity companies have invested highly in setting up solar utility power plants
Major investment in renewable energy in India is utility-scale power plant, while investment in the manufacture of solar PV cells and modules is low. The government PLI scheme created a manufacturing base for silicon wafers, cells, and Modules and PM Surya Ghar Yojana created the demand for solar modules and inverters.
Electricity generated from Solar PV is half the cost of electricity generated from coal, in Q2-24 major tenders' quoted price was around Rs 2.70 per KWH Electricity generated from coal is about Rs 4.26 per KWH, The following are major factors that impact the project cost and the electricity cost:
• Finance cost
• Land cost
• Solar Module efficiency and cost
The finance cost in India is higher compared to China and other developed countries so this impacts the project and electricity costs.
Companies in carbon-neutral areas, like data centers, metro railways, and pharmaceutical manufacturing, are now using solar energy to maintain sustainability.
Waste Management Strategies for Solar Energy Challenges
Solar panels have a useful lifespan of 25 to 30 years, depending on the technology and module. However, many panels are decommissioned earlier due to factors such as degradation from extreme weather conditions, handling, transportation, and component wear. By 2030, the waste generated from solar panel decommissioning is expected to reach around 340 kilotonnes, and this amount could triple if early replacement with higher efficiency modules becomes common. As of October 2024, the total cumulative solar PV installation in India reached 92.12 GW, including 71.05 GW of ground-mounted and 14.45 GW of grid-connected rooftop PV.
Number of pilot plants are operational to develop technology that can scale up and address future requirement. To extract metallic components like silver , copper chemical technology is ideal while to extract Aluminium , silicon and glass mechanical technology is operation .
Crystalline silicon (C-SI) and thin-film (mainly Cadmium telluride CdTe) are mainly two technology-based modules used in India. Crystalline silicon Module share total installation in India is more than 95% , the waste generated from crystalline silicon (C-Si) modules are aluminum, glass , silicon, silver, and copper metal. The recovery rate depends on the type of technology and capacity of the recycling plant. All materials recovered after recycling can be used as raw material for further manufacturing.
Financing Strategies to Ensure Solar Energy's Financial Viability
To support the solar PV industry to achieve financial viability, the government implemented a range of financing mechanisms, like a feed-in Tariff, subsidizing the project cost, like PM Surya Ghar for domestic electricity, PM Kusum for water pumping, and off-grid power plants, etc. For silicon, ingots, wafer, cell and module manufacturing scheme like PLI, Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS)
Achieving financial viability for utility-scale solar plants and manufacturing requires a combination of government support, regulatory frameworks, and innovative business models. Current funding options for solar projects include venture capital (VC), private equity, public funding, debt from renewable energy financial institutes, and joint ventures with foreign partners. Development banks like IREDA also provide project financing.
The government should offer low-interest loans, tax incentives, and direct subsidies to promote solar power plants in remote areas and support R&D for advanced solar cells. The PM Surya Ghar and PM Kusum schemes, which aim to add 30GW and 32GW respectively, are examples of how subsidies reduce project costs for end users. Additionally, promoting green bonds for solar projects and long-term power purchase agreements (PPAs) can help reduce market price risks for operators.
Impact of Solar Energy in India and Key Technologies
Solar energy has significantly impacted urban and rural lives by enhancing quality of life, reducing environmental impact, and creating jobs in both organized and unorganized sectors. It has improved education and the economy by enabling longer work and study hours. Solar initiatives, such as solar pumping under PM-KUSUM and rooftop solar systems, have generated employment opportunities in rural areas and supported businesses and startups. Additionally, solar rooftops help millions save money by offsetting rising electricity costs.
As a clean energy resource, solar power generates electricity at the consumption site. Decentralized generation enables electrification in areas without grid access, such as islands like Port Blair, where NTPC installed solar plants. Off-grid and hybrid solar systems provide reliable electricity, improving healthcare in remote areas by powering vaccine storage, operating medical equipment, and supporting emergency medical services.
High-efficiency bifacial solar modules, such as those using PERC (Passivated Emitter and Rear Contact) and TOPCON (Tunnel Oxide Passivated Contact) technologies, are ideal for utility-scale solar plants. These modules are highly reliable, offer a lifespan of 25–30 years, have low degradation rates, and provide high efficiency with favorable temperature coefficients.
Looking Ahead
At COP26 in Glasgow, PM announced that India would achieve 50% of its energy requirements from renewable energy by 2030, and achieve net-zero emissions by 2070. Development of Renewable energy solar and wind is a part of the government of India vision to bring clean and affordable energy within the reach of all, achieve social equity, and address environmental and sustainability concerns. Developing renewable sources, particularly solar PV has already put India on an energy transition path with a cleaner environment, energy independence, and a stronger economy. Recent policies from the government on utility solar power plants, solar pumps, and rooftop solar systems in India have accelerated solar PV deployment and met the climate change mitigation goals.
.jpg "Doner & Burger: Blending Traditional Doner with Modern Burgers for a Unique Dining Experience")
