Solar energy market developments in India

Considering India׳s ambition to ensure energy security, renewable energy sources like solar, wind, biomass, and small hydro can play crucial role in the energy mix of the country. Solar has been identified as one of the key renewable sources to supplement the conventional energy sources and reduce carbon footprint in India. Authors review solar energy potential, market developments, capacity additions, actual production, and component manufacturing industry, trade status, and economics of solar energy in the country. Recently the Government revised target for solar power capacity installation from 20GW to100GW by 2022. However, the solar industry faces a significant level of challenges in the areas of grid connectivity and evacuation infrastructure, regulatory & policy developments, capacity utilization, initial capital investment, lack of innovative financing models, consumer awareness and acceptance. Authors suggest that by taking key strategic steps like creating, attracting investment climate, making easy access to financing, developing transmission and distribution infrastructure, skill development, and developing domestic component manufacturing industry - the challenges can be addressed. Such progressive steps would enable India to achieve the objective of industrialization through clean energy.