India is one of the fastest growing solar power markets in the world. As a result, there are many opportunities for businesses to capitalize on this growth and become leaders in the industry. However, there are several challenges facing the Indian solar power market that must be addressed in order to ensure its continued success. India has the potential to become one of the world’s largest solar energy producers, with a total installed capacity of nearly 34 gigawatts (GW).
However, despite this potential, there are several challenges that must be overcome before India reaches its full solar power potential. One key challenge is grid connectivity and storage. This is due to the fact that much of India’s electricity grid is outdated and unable to support large-scale connection of solar panels. Additionally, while some potential exists for battery storage of solar power, the cost of such technology means it is not yet feasible on a wide scale.
It is crucial to understand the challenges facing the Indian solar power market and how they can be overcome.
Grid Infrastructure and Intermittency issues
India solar power market is no stranger to grid infrastructure and intermittency issues, both can pose significant obstacles to the success of a solar panel system. When it comes to grid infrastructure, India’s aging electricity infrastructure is often insufficient to handle the demands of any large-scale solar installations, making it difficult for solar panel farms to be adequately connected to the national power grid. To address this issue, organizations seek to provide economic and technological support for local energy projects.
As for the intermittency, inefficient power management is another challenge impacting India's
solar panel market prices. Grid failure, voltage fluctuations, and sudden load changes can all cause a decrease in generation efficiency, and considering India’s hot climate; this can lead to further damage from overheating or dust accumulation. To solve this issue, implementing energy storage solutions such as batteries or flywheels can help ensure consistent output at all time.
“One of the significant challenges that the solar industry faces is that solar panels can convert a tiny percentage of sunlight into energy. The reliability of the solar panels is also an issue, especially in those geographical areas where sunlight is not available in abundance”, says Ashutosh Verma, Founder of Exalt.
Cost Issues with Solar DevelopmentThe cost of solar technology has been decreasing every year, making it more accessible and attractive to business owners and conservative markets. However, India still faces many cost-related roadblocks in the development of solar power. Investing in a solar project involves high capital costs, such as purchasing the land, constructing the solar structures, and connecting them to the grid. This can be a major financial burden for small businesses or entrepreneurs that are just starting their venture. In addition, accessing funding can be difficult due to inadequate finance institutions that don't specialize in financing renewable energy projects. Additionally, these funds generally come with higher rates of interest than other capital sources which can add another layer of difficulty for individuals or businesses interested in investing in solar power.
Losses in transmission and distributionThe transmission and distribution (T&D) loss is the amount of power generated but not delivered to customers.T&D losses in India are nearly twice as high as the global average, at roughly 20% primarily due to technological inefficiencies. This raises the cost of solar energy for customers when compared to other conventional energy sources The Indian solar power market has many challenges that are hindering its growth and development, such as inadequate financing and regulatory barriers.
However, the government and private sector are working to make changes to the policies and regulations to make the industry more attractive for investors. These changes include
Regulatory reforms, improved financing, and experimental business models. With these initiatives, the solar panel market in India is expected to grow and develop further. With a clear plan and focused efforts, the Indian solar panel market can be a great example of successful solar power utilization in the world. By reducing the barriers to adoption, and increasing access to solar energy, India can become a leader in solar energy and show the world the potential of renewable energy.