Present Market Positives for Solar Panel Manufacturers
As per the European Photovoltaic Industry Association, photovoltaic systems are going to generate around 260 GWP of electricity on the planet by the year 2030. This amount of power is going to cater to the power requirement of 14% of the global population. This means that the demand for Solar Panel Manufacturers is going to increase like anything. In this major energy transformation, India is going to play a key role. India has noteworthy resources in terms of production and technology, making it one of the main suppliers of photovoltaic cells and systems to the world.
At the rate which the Indian solar industry is growing, it is going to become the 4th largest solar energy producer in the world. The other leading solar energy generating countries are German, China and Japan. And, due to the dramatic increase in the consumption of energy, solar power is going to play a major role in the domestic energy supply in the country. Indian Solar Panel Manufacturers have a critical role to play as more than 50,000 Indian villages are without any power supply. And, solar power is going to help improve the lives of millions of people by fulfilling their agricultural, industrial and educational requirements. Currently, India is a key contributor in the technology market of the world. As per the latest report, the revenue generated by Solar Panel Manufacturers making semiconductors in the country is more than $4.38 billion.
India requires more and more power not just to fulfill the shortfalls in its daily power requirement, but also to fuel its economic progress. As per Central Electricity Authority, the demand for power in the country was 120 gigawatts in 2008, but the supply was just 98 gigawatts. And, as per one review, this energy deficit is considered to grow to more than 25 gigawatts by the year 2012. As per the review the government has targeted the renewable energy share to be 24% by the year 2031 and the share of solar energy to be 56 gigawatts. The demand for solar power is going to increase tremendously in the country. And, this is going to create more demands on the Solar Panel Manufacturers. Presently, the average consumption of electricity in the country is 630 kWh for one person annually. This is estimated to increase to 1000 kWh in the next 5 years. There are a few chief reasons why solar energy has not been adopted in the country on a large scale. The Solar Panel Manufacturers in the country are presently more concentrated on catering to the European market. The reason is because the European market is well supported due to government rebates. In India, the government support is very small and mainly factories are relying upon solar power.
In order to give a boost to the Indian photovoltaic (PV) market a strong lobby is required in the country. In this case the Indian Semiconductor Association is playing the major role as it represents many Indian Solar Panel Manufacturers. This lobby can play the role of informing the Indian government about the present situation of the global PV market and the steps the country needs to take in for its own PV industry. The Indian PV industry is going to see significant growth if the planned feed-in tariff is extended to more than the present plan of 10 years. Higher rates are also going to prove instrumental to the improvement of this industry in the country. The present feed-in tariff doesn’t display promoting return on investment. And, for Solar Panel Manufacturers, this is going to increase the risk for banks which are offering finance without which projects cannot move ahead.
Another step to develop the Indian solar power market is to create solar funds so as to ensure the financing of projects. With the present economic scenario while the banks are cautious about financing, solar is not a priority for them. The initial costs are excessively high in every Indian solar power project and application. However, the returns on the industry are decent and protected, and people are ready to bear the interest rate of 10%. Hence, with decent financial returns and development of market, it seems to be a good scenario for Solar Panel Manufacturers. Since subsidies in investment are not required, government role is not required in a major form. Financing is the one condition that is going to be sufficient to set the industry on its path to development.
The benefits of developing the solar energy industry in the country are numerous. The solar industry is going to be protected. Power shortages will come down significantly and the return on investment is going to be good. Still Solar Panel Manufacturers in India have a lot to look forward to. The government has already declared incentives to the manufacturers of solar cells and panels, and it is focusing on fulfilling 10% of the power requirement of the country through renewable energy source by the year 2012. After this announcement from the government, many Solar Panel Manufacturers have announced their future plans. Signet Solar is going to invest $2 billion to set 3 plants in the country. The company is already running a unit in Germany and is expecting to use its experience in India. The company has also proposed to conduct research so as to bring down the cost of the technology.
Another major Solar Panel Manufacturers in the country is Tata BP Solar. It is already operating one of the first solar equipment production units in the country. The company is now investing $100 million to expand its plant. Another company which has jumped into the solar industry is Moser Baer. It is going to invest more than $250 million to build a plant for making solar energy systems. The global market for photovoltaic systems is expected to grow to over $40 billion dollar. The Moser Baer plant is estimated to earn more than $100 million annually once the new plant is completed. As per Solar Panel Manufacturers this industry is not capital intensive and they are expecting high returns. Another major manufacturer is SunTechnics Energy, which has a solar-power plant in India and is planning to expand it further. The growth in the demand for solar power by 25% every year has triggered many manufacturers of solar-power systems invest heavily.
The technical potential for solar power in India is around 5,000 trillion kWh annually. And due to the minimal cost of operation, it is estimated to be the ideal source of energy for the country. Presently, the installed capacity of solar power in the country is just around 10 MW. This is not even 0.1% of the overall renewable energy in the country. The overall installed renewable energy figures in India are more than 13,000 MW. Total installed capacity of the Indian power industry is more than 146,000 MW. Out of this, around 55% is based upon coal, 25% on water, 8% is on renewable energy sources and the rest is based on nuclear and gas sources. When it is about power shortages, it is more than 10% of the overall energy and around 15% of the needed peak capacity. And, this is going to increase further through the years.
Most Solar Panel Manufacturers working hard to bring down the production cost because it is higher than Rs. 15 a unit compared to Rs 4 or 5 for traditional electricity. Most parts of India don’t have any electric grid. Hence, solar energy has a huge potential to act as a solution for water pumping. This is going to replace the 4 to 5 million water pumps in the country which are powered by diesel. A diesel run water pump consumes around 3.5 kw of power. There is good news for Solar Panel Manufacturers in the new plans of government where it has announced to facilitate immense growth in the installed solar capacity where the price of solar electricity is projected to be brought at par with the price of traditional electricity made from diesel and coal.
Indian is the 7th largest producer of Solar Photovoltaic cell in the world and the 9th largest for solar thermal power. And, the capacity of the country is further improving with the introduction of more and more Solar Panel Manufacturers. There is further good news for Solar Panel Manufacturers, as the government is planning to spend more than $20 billion over the next 3 decades to implement 3-phase plan for the expansion of solar capacity. The government also declared that it is going to bear 20% of the expenses for the first 10 years when a solar PV plant is located in a Special Economic Zone (SEZ). Under this plan, Solar Panel Manufacturers producing semiconductor are required to invest minimum of Rs. 25 billion, while those making nano and micro technology are required to invest Rs. 10 billion. All these announcements and endeavors from the government are good news for Solar Panel Manufacturers in the country.