Know Your Industry
Why Solar Energy?
Why is Solar energy becoming so critical? With so much free energy generated by the sun, countries worldwide are turning to it not only to enable power generation on an unprecedented scale, but also clean energy, in a sustainable and scalable yet profitable way.
Fact: The quantum of energy, which reaches our planet's surface in just one year, is so massive that it is about twice the amount of energy that can be generated by all of Earth's non-renewable resources of coal, oil, natural gas, and mined uranium combined.
The energy giant, Shell, estimates that more than 50% of the global energy in 2040 will be in the form of renewable energy and experts worldwide agree that millions of homes around the world will switch to solar energy in the next few years. With an average of over 300 sunny days a year, India is literally a goldmine for solar power; receiving more than 5,000 trillion kWh of Solar Energy every year! The signs are clear. The market for solar power is set to explode and solar energy will be harnessed on a scale like never before.
According to a recent research report published by RNCOS, "Indian Solar Energy Market Analysis", India's installed capacity for solar power generation has increased tremendously during the last few years...
Sustainability and Business Growth!
The conditions in India are not only suitable for solar power, but also ideal. Here's why this is truly a 'sunrise' industry all set to transform the Indian landscape:
- Massive rise in demand for electricity…and an colossal shortage in many states especially in the south. Vast untapped potential to leverage solar power in India where one-third of the population - over 450 million people, have no access to grid electricity today.
- In 2012, nearly all the States in India have significantly hiked the price of power by anywhere between 4% and 15%. The need for alternative power is greater now than it has ever been!
- Various Government incentives and subsidies (even more than those for wind energy) - an incredible 30% government subsidy on solar projects.
- Huge investments already underway across the country; with many states mandating increase in use of renewable energy.
- Significant reduction in cost of power generation from Photo Voltaic (PV) Solar.
- PV Solar – Solar Photovoltaics, or Solar PV for short, is a technology in which daylight is converted into electrical power. Solar PV takes advantage of energy from the sun to create electricity, that will operate electrical appliances and lighting. It is a proven model with moderate Capital Expenditure (CAPEX) and almost ZERO Operational Expenditure (OPEX). Also considered extremely flexible and scalable.
- Solar power suitable for a huge spectrum of uses from industrial use and transport, to home use for lighting and cooking, agriculture, telecom.
- Renewable energy is becoming a top mandate for businesses across the globe to ensure a reduction in their carbon footprint; solar energy will lead the way in the race to go green.
- India is currently over-dependent on coal, which is both a dwindling resource and a huge cause of increasing carbon footprint. Current installed power generation from coal accounts for 52% of the total power generated.
- India's crude oil reserves are expected to be completely depleted in 20 years; Solar power is being counted on as the long-term sustainable replacement of current non-renewable energy sources.
- As an agricultural nation India, with over 21 million irrigation pumps, has tremendous potential for solar irrigation pumps. Government subsidies on electricity for irrigation pumps alone are between Rs. 30,000 and 40,000 crores (US$6 and $8 billion) a year.
- There are huge job opportunities – estimates show PV will generate about 100,000 jobs by 2020.