Solar power in India

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Solar power in India is a fast developing industry. As of September, 2017 the country's solar grid had a cumulative capacity of 16.20 GW.[1][2] India quadrupled its solar-generation capacity from 2,650 MW on 26 May 2014 to 12,289 MW on 31 March 2017, the country added 3.01 GW of solar capacity in 2015-2016 and 5.525 GW in 2016-2017, the highest of any year, with the average current price of solar electricity dropping to 18% below the average price of its coal-fired counterpart.[3][4][5]

In January 2015 the Indian government expanded its solar plans, targeting US$100 billion in investment and 100 GW of solar capacity (including 40 GW from rooftop solar) by 2022.[6][7][8][9][10]. India's initiative of 100 GW of solar energy by 2022 is an ambitious target, since the world's installed solar-power capacity in 2014 was 181 GW,[11] the improvements in solar thermal storage power technology in recent years has made this task achievable as the cheaper solar power need not depend on costly and polluting coal/gas fired power generation for ensuring stable grid operation.[12][13]

In addition to its large-scale grid-connected solar PV initiative, India is developing off-grid solar power for local energy needs, the country has a poor rural electrification rate; in 2015 only 55 percent of all rural households had access to electricity, and 85 percent of rural households depended on solid fuel for cooking.[14] Solar products have increasingly helped to meet rural needs; by the end of 2015 just under one million solar lanterns were sold in the country, reducing the need for kerosene.[14] That year, 118,700 solar home lighting systems were installed and 46,655 solar street lighting installations were provided under a national program;[14] just over 1.4 million solar cookers were distributed in India.[14]

In January 2016, Prime Minister Narendra Modi and French President François Hollande laid the foundation stone for the headquarters of the International Solar Alliance (ISA) in Gwal Pahari, Gurugram. The ISA will focus on promoting and developing solar energy and solar products for countries lying wholly or partially between the Tropic of Cancer and the Tropic of Capricorn, the alliance of over 120 countries was announced at the Paris COP21 climate summit.[15] One hope of the ISA is that wider deployment will reduce production and development costs, facilitating the increased deployment of solar technologies to poor and remote regions.

Solar map of India


With about 300 clear and sunny days in a year, the calculated solar energy incidence on India's land area is about 5000 trillion kilowatt-hours (kWh) per year (or 5 EWh/yr).[16][17] The solar energy available in a year exceeds the possible energy output of all fossil fuel energy reserves in India, the daily average solar-power-plant generation capacity in India is 0.20 kWh per m2 of used land area, equivalent to 1400–1800 peak (rated) capacity operating hours in a year with available, commercially-proven technology.[18][19]

Installations by region[edit]

Installed solar PV on 31 March
Year Cumulative Capacity (in MW)
Growth of solar power in India[20][21]
State MW as of
MW as of
MW as of
MW as of
Rajasthan 942.10 1,269.93 1,317.64 2,219
Punjab 185.27 405.06 592.35
Uttar Pradesh 71.26 143.50 269.26
Uttarakhand 5.00 41.15 45.10
Haryana 12.80 15.39 73.27
Delhi 5.47 14.28 38.78
Jammu and Kashmir 0.00 1.00 1.00
Chandigarh 4.50 6.81 16.20
Himachal Pradesh 0.00 0.20 0.33
Northern Region 2,353.93
Gujarat 1,000.05 1,119.17 1,159.76 1,384
Maharashtra 360.75 385.76 430.46
Chhattisgarh 7.60 93.58 135.19
Madhya Pradesh 558.58 776.37 850.35 1,352
D&N 0.00 0.00 0.60
Goa 0.00 0.00 0.05
Daman & Diu 0.00 4.00 4.00
Southern Region 2,580.37
Tamil Nadu 142.58 1,061.82 1,590.97 1,804
Andhra Pradesh 137.85 572.97 979.65 2,153
Telangana 167.05 527.84 1,073.41 2,792
Kerala 0.03 13.05 15.86
Karnataka 77.22 145.46 341.93 1,649
Puducherry 0.20 0.20 0.03
Western Region 4,001.85
Bihar 0.00 5.10 95.91
Odisha 31.76 66.92 77.64
Jharkhand 16.00 16.19 17.51
West Bengal 7.21 7.77 23.07
Sikkim 0.00 0.00 0.01
Eastern Region 214.14
Assam 0.00 0.00 11.18
Tripura 5.00 5.00 5.02
Arunachal Pradesh 0.03 0.27 0.27
Mizoram 0.00 0.00 0.01
Manipur 0.00 0.00 0.10
Meghalya 0.00 0.00 0.01
Nagaland 0.00 0.00 0.50
North Eastern Region 17.09
Andaman & Nicobar 5.10 5.10 5.40
Lakshadweep 0.75 0.75 0.75
Others 0.00 58.31 61.70
Islands and others 67.85
Total 3,743.97 6,762.85 9,235.24 16,200

Andhra Pradesh[edit]

Installed photovoltaic capacity in Andhra Pradesh is more than 2049 MW as on 31 July 2017;[22][23] in 2014, the IPPs agreed with APTransCo to install 619 MW.[24] The following year, NTPC agreed with APTransCo to install the 250-MW NP Kunta Ultra Mega Solar Power Project near Kadiri in Anantapur district.[25][26] In April 2017, 900 MW of capacity was commissioned at Kurnool Ultra Mega Solar Park by SB Energy, Softbank Energy, etc. which has become the world's largest solar power plant.[27]


Rajasthan is one of India's most solar-developed states, with its total photovoltaic capacity reaching 2,023 MW by the end of July 2017. Rajasthan was second in the country after Andhra Pradesh in installed capacity as on 31 March 2017, and is home to the 100 MW CSP plant at the Dhirubhai Ambani Solar Park.[3][28] Jodhpur district leads the state with installed capacity of over 1,000 MW, followed by Jaisalmer and Bikaner. The Bhadla Solar Park, with a total capacity of 2,255 MW, is being developed in four phases; 260 MW capacity was commissioned by NTPC Limited, with the park's remaining projects scheduled for commission by May 2017.

Tamil Nadu[edit]

Tamil Nadu was the state with the highest installed solar-power capacity in India on 21 September 2016, when the 648-MW Kamuthi Solar Power Project was dedicated. With this plant, the total installed capacity in Tamil Nadu is 1,697 MW as on 31 July 2017,[29] this is 21 percent of the installed renewable energy in the state; the other 79 percent is wind power. The plant, in Kamuthi, cost 4,550 crore (US$710 million). The plant consists of 3.80 lakh (380,000) foundations, 25 lakh (2.5 million) solar modules, 27,000 tons of structure, 576 inverters, 154 transformers and 6,000 km (3,700 mi) of cables. About 8,500 people installed an average of about 11 MW a day to complete the plant in the stipulated time.[30] Tamil Nadu is one of the national leader in adding solar-power capacity.[31]

On 1 July 2017, Solar power tariff in Tamil Nadu has hit an all-time low of Rs 3.47 per unit when bidding for 1500 MW capacity was held.[32][33]


Gujarat is one of India's most solar-developed states, with its total photovoltaic capacity reaching 1,262 MW by the end of July 2017. Gujarat has been a leader in solar-power generation in India due to its high solar-power potential, availability of vacant land, connectivity, transmission and distribution infrastructure and utilities. According to a report by the Low Emission Development Strategies Global Partnership (LEDS GP) report, these attributes are complemented by political will and investment.[full citation needed] The 2009 Solar Power of Gujarat policy framework, financing mechanism and incentives have contributed to a green investment climate in the state and targets for grid-connected solar power.[34][35]

The state has commissioned Asia's largest solar park near the village of Charanka in Patan district,[36] the park is generating 2 MW of its total planned capacity of 500 MW, and has been cited as an innovative and environmentally-friendly project by the Confederation of Indian Industry.[full citation needed]

To make Gandhinagar a solar-power city, the state government has begun a rooftop solar-power generation scheme. Under the scheme, Gujarat plans to generate 5 MW of solar power by putting solar panels on about 50 state-government buildings and 500 private buildings.

It also plans to generate solar power by putting solar panels along the Narmada canals, as part of this scheme, the state has commissioned the 1 MW Canal Solar Power Project on a branch of the Narmada Canal near the village of Chandrasan in Mehsana district. The pilot project is expected to stop 90,000 litres (24,000 US gal; 20,000 imp gal) of water per year from evaporating from the Narmada River.


The 125-MW Sakri solar plant is the largest solar-power plant in Maharashtra, the Shri Saibaba Sansthan Trust has the world's largest solar steam system. It was constructed at the Shirdi shrine at an estimated cost of 1.33 crore (US$210,000), 58.4 lakh (US$91,000) which was paid as a subsidy by the renewable-energy ministry. The system is used to cook 50,000 meals per day for pilgrims visiting the shrine, resulting in annual savings of 100,000 kg of cooking gas, and was designed to generate steam for cooking even in the absence of electricity to run the circulating pump. The project to install and commission the system was completed in seven months, and the system has a design life of 25 years.[37][38][39] The Osmanabad region in Maharashtra has abundant sunlight, and is ranked the third-best region in India in solar insolation. A 10 MW solar power plant in Osmanabad was commissioned in 2013.

Madhya Pradesh[edit]

Madhya Pradesh is one of India's most solar-developed states, with its total photovoltaic capacity reaching 1,117 MW by the end of July 2017. The Welspun Solar MP project, the largest solar-power plant in the state, was built at a cost of 1,100 crore (US$170 million) on 305 ha (3.05 km2) of land and will supply power at 8.05 (13¢ US) per kWh. A 130 MW solar-power plant project at Bhagwanpura, a village in Neemuch district, was launched by Prime Minister Narendra Modi, it is the largest solar producer, and Welspun Energy is one of the top three companies in India's renewable-energy sector.[40] A planned 750 MW solar-power plant in Rewa district will, when completed, be the world's largest solar-power plant.[citation needed]

Monthly electricity generation[edit]

Grid-connected solar electricity generation has reached one percent of total utility electricity generation.[41][42][43] Solar generation meets the daytime peak load in non-monsoon months when electricity spot prices exceed the daily average price.[44]

Annual solar-power generation[41]
Year Solar power generation (billion kwh)
Monthly solar-power generation in India, April 2016-March 2017
Month Regional solar-power generation (GWh)[45] Total (GWh)[46]
North West South East North East
April 2016 304.38 369.56 301.54 20.43 5.36 991.36
May 2016 292.10 366.75 348.58 26.65 5.03 1,027.68
June 2016 271.60 292.58 317.88 24.03 4.92 922.56
July 2016 265.60 221.51 338.65 21.45 4.70 853.55
August 2016 248.13 215.90 435.90 24.59 5.30 930.73
September 2016 276.56 302.87 403.34 29.27 4.91 1,018.56
October 2016 289.88 334.88 546.05 35.41 4.86 1,208.98
November 2016 279.20 563.62 513.07 63.74 4.97 1,200.87
December 2016 249.06 349.30 523.63 33.45 2.48 1,157.90
January 2017 235.93 338.73 575.49 33.85 3.55 1,187.55
February 2017 312.61 352.60 649.07 37.52 3.48 1,355.28
March 2017 431.06 407.77 788.80 42.72 0.63 1,670.98
Total (GWh) 3,025.05 3,708.30 4,953.20 350.39 49.56 12,086.5

Major photovoltaic power stations[edit]

Below is a list of solar power generation facilities with capacity of at least 1 MW.

  1. ^ Expected power generation 13 million KWh/year at 2.8 (4.4¢ US) per KWh
  2. ^ India's first plant commissioned under the Jawaharlal Nehru National Solar Mission

Solar photovoltaic growth forecasts[edit]

In August 2016, the forecast for solar photovoltaic installations was about 4.8 GW for the calendar year. About 2.8 GW was installed in the first eight months of 2016, more than all 2015 solar installations. India's solar projects stood at about 21 GW, with about 14 GW under construction and about 7 GW to be auctioned,[92] the country's solar capacity is expected to reach 18.7 GW by the end of 2017 (89 percent higher than 2016), making it the third-largest global solar market.[93]

Solar thermal power[edit]

Solar thermal power plant with a field of heliostats and a central solar power tower.

The installed capacity of commercial solar thermal power plants (non storage type) in India is 225 MW with 25 MW in Gujarat, 50 MW in Andhra Pradesh and 150 MW in Rajasthan.[94][95] Solar thermal plants with thermal storage are emerging as cheaper (US 6.1 ¢/kWh or Rs 3.97/KWh) and clean load following power plants to supply electricity round the clock.[96][97] They can cater the load demand perfectly and work as base load power plants when the extracted solar energy is found excess in a day.[98] Proper mix of solar thermal (thermal storage type) and solar PV can fully match the load fluctuations without the need of costly battery storage.[99][100]

Hybrid solar plants[edit]

Solar panels and two windmills
Hybrid plant in Leh, Jammu and Kashmir

Solar power, generated mainly during the daytime in the non-monsoon period, complements wind which generate power during the monsoon months in India. Solar panels can be located in the space between the towers of wind-power plants, it also complements hydroelectricity, generated primarily during India's monsoon months. Solar-power plants can be installed near existing hydro power and pumped-storage hydroelectricity, utilizing the existing power infrastructure and storing the surplus secondary power generated by the solar PV plants.[101]

During the day time, the additional auxiliary consumption of a solar thermal storage power plant is nearly 10% of its rated capacity for the process of extracting solar energy in the form of thermal energy,[98] this auxiliary power requirement can be made available from cheaper solar PV plant by envisaging hybrid solar plant with a mix of solar thermal and solar PV plants at a site. Also to optimise the cost of power, generation can be from the cheaper solar PV plant (33% generation) during the day light whereas the rest of the time in a day is from the solar thermal storage plant (67% generation) for meeting 24 hours base load operation.[102]

Solar heating[edit]

Generating hot water or air or steam using concentrated solar reflectors, is increasing rapidly. Presently concentrated solar thermal installation base for heating applications is about 20 MWh in India and expected to grow rapidly.[103] Cogeneration of steam and power round the clock is also feasible with solar thermal CHP plants with storage capacity.

Bengaluru has the largest deployment of roof-top solar water heaters in India, generating an energy equivalent of 200 MW.[104] It is India's first city to provide a rebate of 50 (78¢ US) on monthly electricity bills for residents using roof-top thermal systems,[105] which are now mandatory in all new structures. Pune has also made solar water heaters mandatory in new buildings.[106]

Rural electrification[edit]

The lack of an electricity infrastructure is a hurdle to rural India's development. India's power grid is under-developed, with large groups of people still living off the grid;[107] in 2004, about 80,000 of the nation's villages still did not have electricity; of them, 18,000 could not be electrified by extending the conventional grid. A target of electrifying 5,000 such villages was set for the 2002–2007 Five-Year Plan. By 2004 more than 2,700 villages and hamlets were electrified, primarily with solar photovoltaic systems,[16] the development of inexpensive solar technology is considered a potential alternative, providing an electricity infrastructure consisting of a network of local-grid clusters with distributed electricity generation.[108] It could bypass (or relieve) expensive, long-distance, centralized power-delivery systems, bringing inexpensive electricity to large groups of people; in Rajasthan during FY2016-17, 91 villages have been electrified with a solar standalone system and over 6,200 households have received a 100W solar home-lighting system.[citation needed]

India has sold or distributed about 1.2 million solar home-lighting systems and 3.2 million solar lanterns, and has been ranked the top Asian market for solar off-grid products.[109] Three thousand villages in Odisha were planned to be lit with solar power by 2014.[110][111][112]

Lamps and lighting[edit]

By 2012, a total of 4,600,000 solar lanterns and 861,654 solar-powered home lights were installed. Typically replacing kerosene lamps, they can be purchased for the cost of a few months' worth of kerosene with a small loan, the Ministry of New and Renewable Energy is offering a 30- to 40-percent subsidy of the cost of lanterns, home lights and small systems (up to 210 Wp).[113] Twenty million solar lamps are expected by 2022.[114]

Agricultural support[edit]

Solar photovoltaic water-pumping systems are used for irrigation and drinking water. Most pumps are fitted with a 200–3,000 W (0.27–4.02 hp) motor powered with a 1,800 Wp PV array which can deliver about 140,000 litres (37,000 US gal) of water per day from a total hydraulic head of 10 m (33 ft). By 30 September 2006 a total of 7,068 solar photovoltaic water pumping systems were installed,[108] and by March 2012 7,771 were installed.[115] Solar driers are used to dry harvests for storage.[116]

Refrigeration and air conditioning[edit]

Many solar panels arranged horizontally at ground level
4 MW horizontal single-axis tracker in Vellakoil, Tamil Nadu

Thin-film solar cell panels offer better performance than crystalline silica solar panels in tropical hot and dusty places like India; there is less deterioration in conversion efficiency with increased ambient temperature, and no partial shading effect. These factors enhance the performance and reliability (fire safety) of thin-film panels.[117][118][119] Maximum solar-electricity generation during the hot hours of the day can be used for meeting residential air-conditioning requirements regardless of other load requirements, such as refrigeration, lighting, cooking and water pumping. Power generation of photovoltaic modules can be increased by 17 to 20 percent by equipping them with a tracking system.[120]

Residential electricity consumers who are paying higher slab rates more than 5 (7.8¢ US) per unit, can form in to local groups to install collectively roof top off-grid solar power units (without much battery storage) and replace the costly power used from the grid with the solar power as and when produced.[121] Hence power drawl from the grid which is an assured power supply without much power cuts nowadays, serves as cheaper back up source when grid power consumption is limited to lower slab rate by using solar power during the day time, the maximum power generation of solar panels during the sunny day time is complementary with the enhanced residential electricity consumption during the hot/summer days due to higher use of cooling appliances such as fans, refrigerators, air conditioners, desert coolers, etc. It would discourage the DisComs to extract higher electricity charges selectively from its consumers.[122] There is no need of any permission from DisComs similar to DG power sets installation. Cheaper discarded batteries of electric vehicle can also be used economically to store the excess solar power generated in the daylight.[123]

Grid stabilisation[edit]

Solar-power plants equipped with battery-storage systems where net energy metering is used can feed stored electricity into the power grid when its frequency is below the rated parameter (50 Hz) and draw excess power from the grid when its frequency is above the rated parameter.[124] Excursions above and below the rated grid frequency occur about 100 times daily,[125][126] the solar-plant owner would receive nearly double the price for electricity sent into the grid compared to that consumed from the grid if a frequency-based tariff is offered to rooftop solar plants or plants dedicated to a distribution substation.[127][128] A power-purchase agreement (PPA) is not needed for solar plants with a battery storage system to serve ancillary-service operations and transmit generated electricity for captive consumption using an open-access facility.[129] Battery storage is popular in India, with more than 10 million households using battery backup during load shedding.[130] Battery storage systems are also used to improve the power factor.[131] Battery storage is also used economically to reduce daily/monthly peak power demand for minimising the monthly demand charges from the utility to the commercial and industrial establishments.[132]


Bar graph
Price of silicon solar cells since 1977[133]

The average bid in reverse auctions in April 2017 is 3.15 (4.9¢ US) per kWh, compared with 12.16 (19¢ US) per kWh in 2010, which is around 73% drop over the time window.[134][135][136] The current prices of solar electricity is around 18% lower than the average price for electricity generated by coal-fired plants.[5] Competitive reverse auctions, falling panel and component prices, the introduction of solar parks, lower borrowing costs and large power companies have contributed to the fall in prices. Bloomberg L.P. reported in December 2016 that the cost of solar power in India, China, Brazil and 55 other emerging markets fell to about one-third of its 2010 price, making solar the cheapest form of renewable energy and cheaper than power generated from fossil fuels such as coal and gas.[137]

The levelized cost of solar electricity fell below 2.5¢ US per kWh in September 2016, cheaper than fuel from coal-based power plants in India.[138][139][140][141] The Indian government has reduced the solar-power purchase price from the maximum allowed 4.43 (6.9¢ US) per KWh to 4.00 (6.2¢ US) per KWh, reflecting the steep fall in cost of solar power-generation equipment.[142][143][144] The applicable tariff is offered after applying viability gap funding (VGF) or accelerated depreciation (AD) incentives.[145][146]

Solar generation cost fell to 2.97 (4.6¢ US) per kWh for the 750 MW Rewa Ultra Mega Solar power project, India's lowest electricity-generation cost.[147][148] Solar panel prices are lower than those of mirrors by unit area.[149]

In an auction of 250 MW capacity of the second phase in Bhadla solar park, South Africa's Phelan Energy Group and Avaada Power were awarded 50 MW and 100 MW of capacity respectively in May 2017 at 2.62 (4.1¢ US) per kilowatt hour.[150] The tariff is also lower than NTPC's average coal power tariff of 3.20 per kilowatt hour. SBG Cleantech, a consortium of Softbank Group, Airtel and Foxconn, was awarded the remaining 100 MW capacity at a rate of 2.63 (4.1¢ US) per kWh.[151][152] Few days later in a second auction for another 500 MW at the same park, solar tariff has further fallen to 2.44 (3.8¢ US) per kilowatt hour which are the lowest tariffs for any solar power project in India.[153] These tariffs are lower than traded prices for day time in non-monsoon period in IEX and also for meeting peak loads on daily basis by using cheaper solar power in pumped-storage hydroelectricity stations indicating there is no need of any power purchase agreements and any incentives for the solar power plants in India.[44][154] Solar power plant developers are forecasting that solar power tariff would drop to 1.5 (2.3¢ US) /unit in near future.[155][156]

Challenges and opportunities[edit]

Land is scarce in India, and per-capita land availability is low. Dedication of land for the installation of solar arrays must compete with other needs, the amount of land required for utility-scale solar power plants is about 1 km2 (250 acres) for every 40–60 MW generated. One alternative is to use the water-surface area on canals, lakes, reservoirs, farm ponds and the sea for large solar-power plants,[157][158] these water bodies can also provide water to clean the solar panels.[159] Highways and railways may also avoid the cost of land nearer load centres, minimising transmission-line costs by having solar plants about 10 meters above the roads or rail tracks. Solar power generated by road areas may also be used for in-motion charging of electric vehicles, reducing fuel costs.[160] Highways would avoid damage from rain and summer heat, increasing comfort for commuters.[161][162][163]

The architecture best suited to most of India would be a set of rooftop power-generation systems connected via a local grid,[164] such an infrastructure, which does not have the economy of scale of mass, utility-scale solar-panel deployment, needs a lower deployment price to attract individuals and family-sized households. Photovoltaics are projected to continue their cost reductions, becoming able to compete with fossil fuels.[165][166]

Greenpeace[16][167][168] recommends that India adopt a policy of developing solar power as a dominant component of its renewable-energy mix, since its identity as a densely-populated country[169] in the tropical belt[170][171] of the subcontinent has an ideal combination of high solar insolation[170] and a large potential consumer base.[172][173][174] In one scenario[168] India could make renewable resources the backbone of its economy by 2030, curtailing carbon emissions without compromising its economic-growth potential.[175] A study suggested that 100 GW of solar power could be generated through a mix of utility-scale and rooftop solar, with the realizable potential for rooftop solar between 57 and 76 GW by 2024,[176] during the 2015-16 fiscal year NTPC, with 110 MW solar power installations, generated 160.8 million kWh at a capacity utilisation of 16.64 percent (1,458 kWh per kW)—more than 20 percent below the claimed norms of the solar-power industry.[50]

It is considered prudent to encourage solar-plant installations up to a threshold (such as 7,000 MW) by offering incentives.[177] Otherwise, substandard equipment with overrated nameplate capacity may tarnish the industry,[178][179] the purchaser, transmission agency and financial institution should require capacity utilisation and long-term performance guarantees for the equipment backed by insurance coverage in the event that the original equipment manufacturer ceases to exist.[180][181][182] Alarmed by the low quality of equipment, India issued draft quality guide lines in May 2017 to be followed by the solar plant equipment suppliers conforming to Indian standards.[183][184]

Government support[edit]

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Solar radiation resource assessment stations in India

Fifty-one solar radiation resource assessment stations have been installed across India by the Ministry of New and Renewable Energy (MNRE) to create a database of solar-energy potential. Data is collected and reported to the Centre for Wind Energy Technology (C-WET) to create a solar atlas; in June 2015, India began a 40 crore (US$6.2 million) project to measure solar radiation with a spatial resolution of 3 by 3 kilometres (1.9 mi × 1.9 mi). This solar-radiation measuring network will provide the basis for the Indian solar-radiation atlas. According to National Institute of Wind Energy officials, the Solar Radiation Resource Assessment wing (121 ground stations) would measure solar radiation's three parameters—Global Horizontal Irradiance (GHI), Direct Normal Irradiance (DNI) and Diffuse Horizontal Irradiance (DHI)—to accurately measure a region's solar radiation.[185][186]

The Indian government of India is promoting solar energy, it announced an allocation of 1,000 crore (US$160 million) for the Jawaharlal Nehru National Solar Mission and a clean-energy fund for the 2010-11 fiscal year, an increase of 380 crore (US$59 million) from the previous budget. The budget encouraged private solar companies by reducing the import duty on solar panels by five percent and exempting solar photovoltaic panels from excise duty, this is expected to reduce the cost of a rooftop solar-panel installation by 15 to 20 percent. The budget proposed a coal tax of $1 per metric tonne on domestic and imported coal used for power generation,[187] the government has initiated a Renewable Energy Certificate (REC)[188] scheme designed to drive investment in low-carbon energy projects.

Solar-energy graph
Timeline of the Jawaharlal Nehru National Solar Mission

The Ministry of New and Renewable Energy provides a 70-percent subsidy of the installation cost of a solar photovoltaic power plant in the north-eastern states, and a 30-percent subsidy in other regions, the National Solar Mission highlights targets set by the government to increase solar energy in India's energy portfolio.

The Mysore City Corporation is setting up a large solar power plant in Mysore with a 50-percent concession from the government of India,[189] the Maharashtra State Power Generation Company (Mahagenco) planned to set up four 200 MW power plants in the state.[190] Delhi Metro Rail Corporation plans to install rooftop solar-power plants at the Anand Vihar and Pragati Maidan metro stations and its residential complex at Pushp Vihar.[191]

The government of Tamil Nadu unveiled a solar-energy policy to increase installed solar capacity from about 20 MW to over 3000 MW by 2015, the policy aimed at fixing a six-percent solar-energy requirement on industries and residential buildings, for which incentives in the form of tax and tariff rebates up to 1 (1.6¢ US)/unit for those complying with the policy. Industries or buildings who did not want to install rooftop solar photovoltaic systems could invest in the government's policy.[192]


Colour-coded world map
Grid parity for solar PV systems around the world[193]
  Reached grid-parity before 2014
  Reached grid-parity after 2014
  Reached grid-parity after 2016
  U.S. states poised to reach grid-parity soon

At the end of July 2015, the chief incentives were:

  1. Accelerated depreciation: For profit-making enterprises installing rooftop solar systems, 40 percent of the total investment could be claimed as depreciation in the first year (decreasing taxes).
  2. Capital subsidies were applicable to rooftop solar-power plants up to a maximum of 500 kW. The 30-percent subsidy was reduced to 15 percent.
  3. Renewable Energy Certificates (RECs): Tradeable certificates providing financial incentives for every unit of green power generated.
  4. Net metering incentives depend on whether a net meter is installed and the utility's incentive policy. If so, financial incentives are available for the power generated.[194]
  5. Assured Power Purchase Agreement (PPA): The power-distribution and -purchase companies owned by state and central governments guarantee the purchase of solar PV power when produced during daylight. The PPAs offer a price equal to the peaking power on demand for the solar power (secondary power or negative load) and an intermittent energy source on a daily basis.

Solar-panel manufacturing[edit]

The 2016 manufacturing capacity of solar cells and solar modules in India was 1,212 MW and 5,620 MW, respectively.[195] Except for crystalline silicon wafers or cadmium telluride photovoltaics, nearly 80 percent of solar-panel weight is flat glass.[196] One hundred to 150 tons of flat glass is used to manufacture a one-MW solar panel. Low-iron flat or float glass is manufactured from soda ash and iron-free silica. Soda-ash manufacturing from common salt is an energy-intensive process if it is not extracted from soda lakes or glasswort cultivation in alkali soil. To increase installation of photovoltaic solar-power plants, the production of flat glass and its raw materials must expand to eliminate supply constraints or future imports.[197]

See also[edit]


  1. ^ "India to reach 20 GW of installed solar capacity by FY18-end: report". Retrieved 2017-09-19. 
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External links[edit]