In this world of electronics, IT, mobile ,television and computers which drives almost everyone ,this would have been impossible without electricity and more precisely power. When it comes to power we always thinks of huge Power stations generating electricity from various forms it is obtained through: Thermal , Hydro , Nuclear and main concern of this article Solar.
What do you think, why solar is gaining so much importance, and especially in India? No right, according to me the factors that brings attention to this “hot topic” which it really is are:
· Ever increasing electricity cost: The bills which we pay for the units utilized by us is tremendous. To reduce this cost of our hard earned money one and the only effective solution is “Solar”.
· Usage: This factor remains of the prime focus ,of all that factors which are included in this section, this is so; we are now currently a nation of 125 cores and according to a survey it is going to increase and that too rapidly and so the electricity consumption. To meet this desired demand of 125 cores+ we should be prepared, so that our generations to come should ripe the benefit of what we have developed in terms of all the stuff be it any technology or any such thing which requires power to run, same as we all did.
Now moving ahead towards our actual concern “Why India should invest more in solar”? Answer to this question is or can be answered through different aspects but my view on this point is composed of mainly four things and which I suppose are primary from any investment point of view and precisely “Solar”.
Below 4 reasons are instrumental in making India Solar capital of whole world.
1. Investment Cost: It is practically for the first time that generating electricity from a renewable source like sun is been able to compete with traditional sources like thermal, hydro, nuclear. Cost of setting a Solar enabled electricity generating grid is as this just a small example but on bigger level it’s cost depreciate to a great extent. Below are some comparative tables on how one can save money by setting up a rooftop PV
Savings from capital subsidy
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Item
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$
|
|
Cost of a 1 kW rooftop solar plant with battery backup
|
$3000
|
|
Subsidy @30% of actual cost
|
$900
|
|
Net cost after subsidy benefit
|
$2100
|
Read more at:http://www.solarmango.com/faq/2
Tax savings from accelerated depreciation
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Item
|
$
|
|
Cost of a 100 kW rooftop solar plant (A)
|
$3000
|
|
Accelerated depreciation @80%
|
$2400
|
|
Corporate tax rate* 30% Tax saved through depreciation (B) 720 Net cost of rooftop solar plant (A)-(B)
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$2280
|
Read more at: http://www.solarmango.com/faq/2
The Component cost of rooftop PV systems:
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Component
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% of total cost
|
|
|
|
|
PV modules (Crystalline)
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52%
|
|
Inverters
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23%
|
|
Balance of System (cables, etc.)
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17%
|
|
Installation
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8%
|
Read more at: http://www.solarmango.com/faq/2
2. Growth in Production: Now as Narendra Modi government is in power they are expanding their vision for solar to a all time high of 100GW of solar capacity by 2022. India ranks number 1 in terms of solar electricity production. This being the added benefit which helps the one who invest in solar now (and in this context I am speaking about Indians).Growth in production helps in selling more electricity and adding dollars to the pocket.
3. Resources: Investments comes with money no doubt ,but there are several more factors which are there to be considered like: money, manpower, infrastructure, land availability, investors , exports and imports and taxes involved and most importantly weather conditions(in context of this article).
· Weather: With about 300 clear and sunny days in a year India capable of producing 500 trillion kilowatt per year in it’s land area.
India without any doubt has been blessed with this natural resource. And reason why this becomes the most important factor is ; it’s free and adding to it investment in solar becomes cheap in India .
· Available Land: In many states like Rajasthan ,Madhya Pradesh , Maharashtra ,Gujarat… this solar is already playing a key role in all sectors and this the fact that government in all the state would readily support investments and are supportive of this initiative.
4. Government Support: Many investments do take place considering the government in power. And as we all know this government enjoys complete power on centre (full majority) ,which makes them more powerful and under such conditions investments in solar and that to in India are most favourable. The government in India has always been in favour of Solar and that from 10 years ago when solar started placing roots in India. Speaking about todays situation Narendra Modi Government has great expectations from the outcomes of solar and he has started moving towards it and has included it in MAKE IN INDIA initiative. Anyone who invest at this time in solar gets plenty of incentive, benefits excluding his profits. “Ministry of Renewable Energy provides 70% subsidy to allocation of solar photovoltaic plants in North eastern regions and to rest of India get 30%” Many big organisations at state level has decided to build mega solar plants and at this time joining hands with them would lead investors for a mammoth they would have never imagine. Solar will prove to be the next Coal which ruled the India during Independence in terms of power generation.
Concluding on India investing for solar , I would like to add ,don’t think solar energy as a resource ,it’s not ,rather it is a technology which is renewing what was traditional and at the same time solar power is going to be benefitting the investor’s investment to a level which is never thought ,in all ways which include finance too. Don’t waste time , as it is best said “strike the iron when it’s still hot”. And to my opinion Indians should invest more, than a Foreign Investment; ultimately everything we have it is for us so make most of it.
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