Despite initial challenges, solar power in India now is a multi-billion dollar opportunity for both, market participants and investors in 2018. Take into account the rising prices of energy in India alongside supply which is unable to keep pace with demand. With more focus than ever on sustainability, stakeholders are losing their trust in conventional energy sources to fulfill expectations. A renewed focus on solar power is presently steered by Jawaharlal Nehru National Solar Mission (JNNSM). Solar power in time will become a crucial component of the energy portfolio in the country over the next 10 years.
Growing in Leaps and Bounds
Going from nothing to several billion dollar businesses, solar market has grown by leaps and bounds over the last decade. Giving in to uncertainties in the sector most have yet to bet on solar but some players have already started preparing. To be successful in the solar power sector one needs to have a long-term commitment. This could only come with a sound understanding of local dynamics.
Important data for solar power scenario in India
The total solar power generated by different countries are as follows –
India has set up a target of 100GW of solar power by 2022. In India, solar energy is not only used for power generation but is also used for heating water and cooking. Telangana with a total output of 2,570.43MW leads in the race followed by Rajasthan, Andhra Pradesh, Madhya Pradesh and Tamil Nadu.
Emerging Scenario in Solar Energy
Lower costs of solar energy and rising costs of grid power are the game changer. This would change and convince consumers, private firms, and firms to switch to solar power. They would prefer to set up their own captive solar power capacity which is economically viable. Off-grid and rooftop segments during this time as price parity between the two alternatives. This makes solar power an economically viable choice. Unlike the rest of the world, the Indian rooftop market will evolve differently. It poses unique challenges which require innovative solutions. Nevertheless, the potential is huge and slow initial buildup of demand can be expected to be followed by strong acceleration.
Steep Learning Curve for the Players
Participants across the solar value chain are bound to experience a steep learning curve with the closing of the gap between solar and grid parity. It is likely that individuals will enthusiastically participate and larger players hold back till the time markets stabilize. Understanding local conditions and adapting operating models according to requirements will give early adopters a strategic advantage. Alongside maturing of the Indian solar industry, local manufacturing units can lookout for export. This could be done with neighboring countries and even across continents like Africa. Large companies for sure are likely to dominate the solar sector. A few independent companies, however, might also emerge to share the billion-dollar solar business pie.
Elements to Winning the Solar Battle
It is unlikely that global procurement will remain a differentiator. There will be more players achieving scale and becoming adept as time goes by. This is why timely execution, innovative financing methods, and localized design models can create value in the Indian market.
Open Solar Market in India
Though solar industry in India is more suited for local players, it is still open to global companies at the same time. Looking at the prospects, global firms can tailor their broad expertise to meet the unique requirements of the Indian scenario. On the other hand, local players can strike appropriate alliances and bridge capability gaps. Local EPC coupled with foreign technology can help both parties. A long-term view of the market is also required by the parties involved in such a situation. Leaders in the market are likely being those who are willing to get into the thick of things right from the start. They will also be the ones sharing the potential of multi-billion-dollar benefits of the Indian solar energy market in the days to come.