Will Indian Government be Able to Meet its Renewable Energy Targets by 2022? The Indian government has accorded a slew of incentives to propel the growth of the solar segment.

By Saurabh Srivastava

Opinions expressed by Entrepreneur contributors are their own.

You're reading Entrepreneur India, an international franchise of Entrepreneur Media.

Pixabay

India is a power hungry nation. A recent report by International Energy Agency (IEA) has predicted that India would be the fastest growing energy consumer and market by 2040. The forecast promises a bright scope for the renewable energy sector. The recently- concluded meeting of International Solar Alliance at Gurgaon is a shot in the arm at India's efforts to promote solar energy.

With India among the founding partners of this global alliance and at the helm of heralding a paradigm shift from conventional energy to renewable energy, it would be imperative that efforts towards promoting clean energy are increased manifold. Currently, a host of developments such as the thrust from the government, reverse auctions, lowering of prices of solar panels and wind turbines have given a fillip to the renewable energy sector.

According to the November 2017 report of Bloomberg New Energy Finance (BNEF), around 715 MW of capacity was added across the country in the last fiscal as compared to 227 MW in the previous year, taking the country's total installed capacity to 1.3 gigawatts. Indian solar installations registered a record 123 percent growth to reach 9.6 GW in 2017, which was more than double the 4.3 GW installed in 2016. Renewable energy sources now account for 32.2 percent of the total installed capacity in the country, with the renewable installed capacity growing faster than conventional sources in 2017 for the first time. The onus is now to sustain the momentum without losing the sight of the overall target.

Government's Assistance

The Indian government has accorded a slew of incentives to propel the growth of the solar segment. Among its recently proposed initiative is Sustainable Rooftop Implementation for Solar Transfiguration of India (SRISTI) encompassing financial assistance of worth Rs 23,450 crore ($3.7 billion) from the government. In =the new scheme, the Ministry plans to offer a maximum financial assistance of Rs 18,000 per kilowatt with a maximum covered capacity of 0.5 kilowatts in the residential sector. Similarly, the institutional, commercial and industrial sectors will receive a maximum financial assistance of Rs 5,500 per kilowatt with a maximum covered capacity of 2.62 kilowatts. The government is also mulling to introduce the "rent- a- roof concept'. Under this scheme, a developer will take rooftops on rent offering a lease to each household and subsequently feed the power to the grid.

Hindrances in the Growth of Solar Capacity.

However, it would be pertinent to note despite "growth of sorts' achieved in the solar segment in the past few years; certain impediments continue to hinder India's smooth ride towards achieving the solar energy targets. The residential solar rooftop segment is yet to take off due to lack of awareness among customers regarding incentives of rooftop policies, an absence of economies of scale, multiple regulatory approvals required for net metering which act as impediments in the residential rooftop segment. Net metering is an important enabler for encouraging the growth of the residential solar segment. At present, there is a lot of ambiguity in the net metering policies.

Although the majority of states have the net metering policy, it continues to be unregulated in states like Andhra Pradesh, Odisha, Tamil Nadu, and West Bengal, where they only have legally non-binding guidelines. Indian power distribution companies or discoms, which are already reeling under losses, are wary of the policy as it would hurt their finances. The need of the hour is to provide incentives for the generation of solar power rather than on installation of solar rooftop systems.

Also, the process of availing subsidies should be made completely centralized and hassle-free. A system of proper energy audits needs to be instituted which can help to reduce the carbon footprint, save energy and money and avert an energy crisis.

A lot more needs to be done on the generation of awareness regarding the benefits of solar energy and skilling the manpower. It would be unfair to rely solely on the government efforts to promote solar energy. The thrust needs to come from corporates as well.

Remedies

There is also a strong need to push for wider-scale implementation of public-private partnership models. The need of the hour is bottom-up approach' involving solar initiatives stemming from the grassroots level. Solar training workshops will go a long way in making masses aware of the benefits of the solar energy besides equipping them with the necessary skills to tackle the solar energy revolution. Initiatives by corporates such as undertaking solar installations at hospitals, schools and other public institutions as part of CSR mandate will go a long way in encouraging adoption of solar energy. The road ahead for India may be bumpy but certainly worth in the long run.

Wavy Line
Saurabh Srivastava

President- Marketing & Product Strategy, Eastman Auto and Power Ltd

Related Topics

News and Trends

Bollywood Actor Suniel Shetty Invests In Klassroom Edutech

Suniel Shetty's direct engagement is projected to boost the startup's social initiatives aimed at bridging the education gap for underprivileged students in India

Lifestyle

World Environment Day 2023: 4 Companies Working For a Greener Planet

With climate-related issues affecting the world, and the built environment being one of the most impactful causes of carbon emissions, sustainability must be integrated into all growth strategies. Even the corporate sector needs to channel its resources for a greener and more sustainable way of living.

News and Trends

Bitcoin Blockchain's Average Transaction Fees Surged 900% To Stand At $15.65

The primary reason behind this drastic increase is said to be the introduction of Ordinals onto the Bitcoin Network

Growing a Business

Subscribers Exclusive Event: Discover How These 2 Founders Turned Their Side Hustle into a Million-Dollar Lifestyle Brand

Learn how you can transform your personal brand into a thriving business empire with co-founders of The Skinny Confidential

Technology

Apple to Unveil its Mixed Reality Headset at Worldwide Developer Conference (WWDC) 2023, Kicking Off Tonight: Here's What To Expect

In the making for a few years now, the mixed-reality headset will place its users between the virtual and real world. The launch would be the most significant one by the iPhone maker.

News and Trends

KL Rahul Invests In Sequoia-Backed Hyugalife.com

KL Rahul, who is currently recovering from a sports injury has joined hands with HyugaLife.com to inspire every Indian to be their healthiest and best self with its all-encompassing platform