Why Investing In Indian Solar Power Franchise Can Light-up Your Future
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The generation of solar power has tremendously increased in the last few years owing to the government’s favourable initiatives and innovative manufacturing technology. Total installed renewable energy capacity in India touched 114.43 GW (around 33 percent of the total energy capacity of the country).
The Indian government is planning to expand its solar plans, targeting US$100 billion in investment and 100 GW of solar capacity by 2022. So, if you’re planning to venture into a solar business, now is the perfect time to do so.
Here are the following reasons why investing in solar power franchise can provide you with huge profits.
Increasing energy prices
There has been increasing energy consumption due to rapid economic development and industrialization. It is being predicted that rising world energy demands will soon outpace production.
With Coal being more difficult to obtain, sources of domestic gas are shrinking. Thus, there is more focus than ever on sustainability. Renewable energy will likely surpass natural gas to become the second-largest source of electricity behind coal.
Solar will become a crucial component of India’s energy portfolio in the coming decade. Investing in the solar franchise will bear huge profits in the current scenario as the industry is quickly developing into a several billion dollar solar-centric firms.
Solar power tariff in India has witnessed a drastic fall over the last few years. This ever-declining solar power tariffs and open market has encouraged good foreign investments into the sector. According to recent reports, Solar Philippines is looking to enter the Indian solar industry and aims to install approximately 500 MW solar farms in India.
Leandro Leviste, Founder & President, Solar Philippines, said, “We’re prioritizing countries where there is a competitive selection process for power suppliers because we believe that that is where we’re most competitive."
“The wonderful thing about India is perhaps [it’s] the most open market in the world. You don’t need local partners, you don’t need any local connections,” said, Leviste.
The Government of India is keen on using a renewable source of energy and is undertaking various measures to promote green energy. The government has implemented various policies and regulation to boost the solar power generation in the country. Some of the schemes are accelerated depreciation, capital subsidy, Renewable Energy Certificate (RECs), Net Metering Incentives, Assured Power Purchase agreement etc.
The government intends to reduce the capital expenditure in building a solar power plant, to make it economically viable for the entrepreneurs to get involved in the solar power franchise.
This article was originally published on Franchise India by Sneha Santra.