Hits & Misses: India Plans to Install 100 GW of Solar Plants by 2022
Since ages we have been dependent upon non-renewable sources of energy like coal, oil, natural and nuclear energy. As a result of which, carbon emissions in the environment are all time high, at the moment. With the advancement in technology, solar energy came into existence. Various government policies and private schemes keep coming up from time-to-time to promote this natural source of energy.
Recently, India bagged fifth position after China, U.S., Japan and Germany, surpassing Italy. According to the Ministry of New & Renewable Energy (MNRE), the solar power energy capacity has improved by 11 times in the past 5 years.
Our Targets & Hits
India has been targeting 100 GW of solar power plants to be installed by 2022, but we are still lagging behind by 27%. As of December 2021, the cumulative solar installed capacity of India was 55 GW (half the renewable energy capacity - excluding large hydro power) and 14% of the overall power generation capacity of our country.
The Ministry of Urban Development had requested all States & UTs to issue necessary directives to all State Government Departments for using rooftop of buildings under their control for solar power generation using rooftop solar on mandatory basis to achieve this target.
Various policies are being implemented to promote this sector and achieve the target:
- Out of the massive target of 100 GW of solar capacity, 40 GW has been earmarked to be achieved from rooftop solar.
- Industries contribute the largest amount to the 1 GW installed rooftop capacity, of about 40%.
- Both residential and commercial have almost equal contribution at 25%.
- Almost 85% of the projects have been installed under the Capex model.
- 15% projects are installed under the Opex model.
Many reports are being proposed as multiple short and long-term measures in order to get India back on track to meet solar energy targets by 2022.
Our Misses & Government Initiatives
India may miss the solar power target by 27%, primarily due to insufficient rooftop solar installations in various states. In the early years, the Indian rooftop solar market encountered a number of issues like lack of consumer awareness among the public, higher import taxes on solar modules and inconsistent regulatory policies. Additionally, the Pandemic played a major role in disrupting the manufacturing of the solar power panels and modules.
However, the Indian Government is encouraging the development of solar power in India by offering various promotional incentives like waiver of Inter State Transmission System (ISTS) charges and losses, financing solar rooftop systems as part of home loan and so on.
Solar energy in India has supported the agenda of sustainable growth for the Indian Government and it has also emerged as an integral part to meet the country's energy requirement.