On June 30, 2023, The Union Minister for Renewable Energy and Power has informed that a cumulative India solar energy capacity of 70,096 MW has been installed in the country.⁵

Up to June 2023, India installed 70,096 MW of solar power and aims to achieve a total solar capacity of 280 gigawatts by 2030.⁶

The cost of electricity generated by sources are as follows:⁷

• Solar: $0.04 to $0.08/kWh.
• Wind: $0.032/kWh
• Hydropower : 0.035 /KWh – 0.048/KWh
• Biogas: $0.057/kWh.
• Coal: $0.036/KWh – $0.072/KWh
• Nuclear : $0.048/KWh – $0.096/KWh

The percentages of various electricity generation are as follows:⁸

• Coal: 52 %
• Solar:15%
• Hydropower 13%
• Wind:10%
• Natural Gas:6%
• Gasoline: 1.5%
• Biogass: 0.5%
• Nuclear: 2%

During June 2021, the average power supply from the electricity grid per day was 22.17 hours in rural and 23.36 hours in urban.⁹

Over 25 crore households across India have the potential to deploy 637 GW of solar energy capacity on rooftops, according to a new independent report by the Council on Energy. Rural areas show higher rooftop potential (363 GW) than urban areas (274 GW).¹¹

At present, India has installed 11GW of solar capacity, of which only 2.7GW is in the residential sector.³⁰

More than 40 solar power plants are installed in India. Number of projected Solar Power Plants are not mentioned but India is aiming for 450 GW of renewable installation by 2030, with solar share of 280 GW (more than 60%). For next 10 years, addition of 25 GW is projected each year in solar energy domain.¹²¹³

• Market Size: Mordor Intelligence estimates the off-grid solar energy market size in India to be 9.13 gigawatt in 2024.¹⁴
• Growth Projection: This market is projected to reach 13.12 gigawatt by 2029, indicating a Compound Annual Growth Rate (CAGR) of 7.51%).¹⁵

• Current: India’s installed solar PV capacity has witnessed exponential growth, reaching approximately 62.8 GW in 2022, and is expected to keep climbing.¹⁶
• Projected: The Indian government aims to achieve 280 GW of solar power capacity by 2030, a significant portion of its overall target of 500 GW for renewables.

The average salary of workers in the solar industry is described below.¹⁷

• Electrical Engineer:  $500-$700
• Electrician: $150-$300
• Design Engineering Manager: $800-1000
• Solar Energy System Installer: $200-$350
• Solar Energy / Solar Power Engineer: $450-$600
• Solar Installation Electrician: $250-$300
• Business Development Manager: $1000-$1500

The population of India is more than 1.4 billion.¹⁸

The average overhead costs of solar panel production in India can be broken down into several key components:¹⁹

• Raw Material Costs: The costs of raw materials such as silicon, aluminum, copper strips, and protective Glass cover, are significant and fluctuate based on global market conditions. The production cost in India is less as compared to other countries.
• Utilities and Energy Costs:³³⁴ These costs reflect the cost of electricity provided by the utility company and energy-intensive nature of solar panel production, particularly in stages such as melting and shaping silicon.
  • Electricity Costs ranges from $0.08 to $0.09 per kWh.
  • Water charges ranges from $5 to $10 per unit for commercial Sector
• Labor Costs:³¹ Labor costs in India are relatively low compared to other countries, contributing to the overall cost-effectiveness of solar panel manufacturing in the country.
  • Labor Costs ranges from $1 to $5 per day.
• Facility Maintenance Costs:³² This includes costs related to maintaining manufacturing facilities, including rent, equipment maintenance, and repairs. As for as the rent of factory is concern, its ranges from $1 per square feet to $ 5 per square feet.
  • Major Cities: $10 to $15 per square meter per month.
  • Tier-2 Cities: $5 to $8 per square meter per month.
• Administrative Expenses:¹⁷³³ Administrative costs encompass salaries for administrative staff, office supplies, and other general expenses. These costs are significant but vary widely by company.
  • The salary varies from labor to officer ranges from $150$ to $1500 per month.
  • The average salaryfor a Solar Installeris $250 per month in
• Quality Control: Quality control expenses are necessary to ensure that solar panels meet performance and safety standards. This includes costs for testing and inspections, which are substantial but essential for maintaining product quality

The costs can vary significantly based on several factors such as:

• Location: This includes variables like labor costs and energy prices, which can differ widely from one region to another.
• Scale of Production: Larger-scale production often benefits from economies of scale, potentially reducing per-unit costs.
• Level of Automation: Higher levels of automation can lead to greater efficiency and lower labor costs, but may require higher initial investments.
• Type of Solar Panels Produced: Different types of solar panels (e.g., monocrystalline, polycrystalline, thin-film) have varying production costs due to differences in materials and manufacturing processes.

As a result, the exact amount of overhead cost is not determined as it is based on various factors as mentioned above. The total overhead cost is suggested as 15% to 30% of the total production cost. These factors together contribute to making India one of the most cost-effective producers of solar panels globally, with costs significantly lower than in many other parts of the world​.

India is the world’s third-largest energy-consuming country. The 75% of energy demand is still being met by coal, oil, and solid biomass. On a per capita basis, India’s energy use and emissions are less than half the world average, as are other key indicators such as vehicle ownership, and steel and cement output. To meet growth in electricity demand over the next twenty years, India will need to add a power system especially renewable energy generation i.e. solar and wind generation.²⁰

²¹

Re-regulations Regarding Climate Change

The Intended Nationally Determined Contribution (INDC), submitted in October 2015, confirmed the country’s voluntary goal to reduce its greenhouse gas (GHG) emission intensity by 20-25% by 2020 (compared with 2005 levels) and went further to pledge a reduction target of 33-35% by 2030 and to increase the share of renewables in installed capacity to up to 40% by the same year. This report confirms that India can achieve these targets – and shows how far it can realistically go beyond them. In addition, the REmap analysis also shows that the country has the potential to contribute 10% of the global carbon dioxide (CO2) emission mitigation potential from renewable energy by 2030 that is needed, when combined with increased energy efficiency, to set the work on a pathway consistent with the Paris Agreement.

Integration of Different Power Sources

Integrating large shares of variable power generation requires planning, and developing a future grid and much of the additional renewable electricity generation deployed in REmap would be variable (such as solar PV and wind), and often split into relatively decentralized generation units. As a result, variable renewable electricity would account for around 20% of total electricity generation, and 45% of installed power capacity in REmap by 2030, placing an increased strain on India’s already stressed transmission and distribution grid.

Manufacturing Standards

Manufacturing Standards: The Indian government has established standards and specifications for solar panels to ensure quality and reliability. These standards are set by organizations such as the Bureau of Indian Standards (BIS) and the Ministry of New and Renewable Energy (MNRE).

Table 1: Quality Standard Infrastructure for Solar Energy

To boost the usage of solar energy in the residential sector, India has a solar subsidy program in place. It reduces the financial burden of installing solar panels, by providing financial assistance to consumers. With this incentive, residential consumers can save up to 60% of their installation cost.¹⁰²²

For rooftop solar installations, the detail of solar subsidy sare given below

• Solar energy systems with a capacity of up to 2 kW are eligible for a subsidy of up to$360/kW.
• For a system capacity upto 3kW, consumer can avail a subsidy of $216.
• For all system capacities exceeding 3kW, a fixed subsidy of$938 will be provided

The Government of India has implemented various initiatives and policies to promote domestic manufacturing of solar panels and boost the solar industry in the country. Some key initiatives include

1. Production Linked Incentive (PLI) Scheme

In November 2020, the Indian government announced a PLI scheme for the solar sector with an outlay of ₹4,500 crore ($600 million). Under this scheme, incentives are provided to domestic manufacturers of high-efficiency solar PV modules. The aim is to increase domestic manufacturing capacity and reduce dependence on imports.

2. Modified Special Incentive Package Scheme (M-SIPS)

M-SIPS is a flagship scheme of the Government of India to promote large-scale manufacturing and attract investments in the electronics sector, including solar photovoltaic (PV) manufacturing. The scheme offers financial incentives such as capital subsidy and reimbursement of expenses for technology acquisition and transfer.

3. National Solar Manufacturing Mission (NSMM)

NSMM was launched to support the development of a robust solar manufacturing ecosystem in India. It aims to achieve grid parity for solar power by reducing the cost of solar PV modules through domestic manufacturing. The mission focuses on technology development, skill enhancement, and infrastructure creation.

4. Goods and Services Tax (GST) Incentives

The government has provided various GST incentives to promote domestic manufacturing of solar panels and related components. These incentives aim to make domestically manufactured solar products more competitive in the market.

5. Research and Development (R&D) Support

The government provides support for research and development activities in the solar sector to promote innovation and technology development. This includes funding for research institutions, academic institutions, and industry collaborations to develop advanced solar technologies and manufacturing processes

Followig are the installed solar projects in India:^232425262728

Bhadla Solar Park – 2245MW – India

• Location: Bhadla, Rajasthan, India
• Capacity: Approximately 2,245 megawatts (MW)
• Features: Bhadla Solar Park is the one of the largest solar project in the world. Its arid and sunny location makes it ideal for solar power generation. The park plays a crucial role in India’s ambitious renewable energy targets.

Pavagada Solar Park

• Location: Pavagada, Karnataka, India
  
• Capacity: Nearly 2,050 MW
• Features: Pavagada Solar Park’s development was innovative, using a land-leasing model from local farmers. This approach minimized displacement and land acquisition issues, setting a precedent for future projects

Rewa Ultra Mega Solar

• Location:  Gurh tehsil of Rewa districtof Madhya Pradesh, India
• Capacity: 750MW
• Features: The project was dedicated to the nation by the Prime Minister of India Shri Narendra Modi on July 10, 2020. It is spread over an area of 1,590 acres (6.4 km²)

Ananthapuramu Ultra Mega Solar Park

• Location: Located in Andhra Pradesh,
• Capacity: 1,500 MW
• Features: It is one of the largest solar parks in India and is spread across multiple villages in the Anantapur district

Here are some notable solar projects that are projected in India:

• Gujarat Hybrid Renewable Energy Park
  The location of this project is Vighakot village in Kutch district of Gujarat, India. This project will generate 30 gigawatts (GW) of electricity from both solar panels and wind turbines

• Rewari Solar Park
  The expected power generation by this solar project is approximate 3.9 GW. This project is located in Haryana.

• Dhanbad Solar Park
  This project is located in Jharkhand and expected capacity of 1.5 GW. It is one of the first solar parks to be developed in eastern India.

• Raghanesda Solar PV Park
  This project is located in Gujarat, India. It has capacity of 100 MW

Following are the lists of top solar companies in India²⁹

1. Tata Solar Power

Tata Solar has been serving in the industry for over 3 decades. It provides solar panels to generate clean energy for residences, commercial & industrial and institutions. Tata Power Solar module manufacturing lines have an in-house production capacity of 635MW for modules and 500MW of cell manufacturing lines with a capacity of 528MW.

2. Adani Solar

Adani Solar was incorporated in 2016. This solar panel manufacturer in India has a 4 GW manufacturing capacity. The company offers mono facial & bifacial modules (in PERC Technology) which help to tap solar energy.

3. Servotechpower Systems Limited

Servotech is an award-winning solar panel company in India that significantly contributes to clean energy generation with meticulously engineered solar panels. This frontline solar products manufacturer in India boasts a wide experience of over 18 years and maintains an extensive range of highly beneficial solar energy products like Solar Inverters, Solar Batteries, Solar Panels, etc.

4. Waree Energies

Waaree Energies Ltd. was founded in 1989. Since its beginning, it has covered a long journey of more than 3 decades and now comprehends a manufacturing capacity of over 12GW.

5. Vikram Solar

Vikram Solar was founded in 2006. A presence in the solar energy sector of more than 32 countries, experience in the installation of 1.42 GW projects in India, and annual manufacturing capacity of 3.5 GW modules make Vikram Solar a competent brand in the solar energy industry.

6. Goldi Solar

Gujarat-based Goldi Solar was started in 2011. It offers solar energy products in the domestic market as well as in 20 other countries. Goldi Solar has achieved a record growth from 10 MW to 500 MW manufacturing capacity in just 10 years.

7. Saatvi Green Energy

Saatvik Green Energy Pvt. Ltd. started its journey in the solar sector in 2015 from Haryana. It actively contributes to the solar energy sector with an annual production capacity of 1 GW. This solar panel manufacturer has its manufacturing plant in Ambala (Haryana) and is soon going to set up another one with a capacity of 1.2 GW at Gandhidham, Gujarat

8. Renewsys India

Since beginning in 2011, Renewsys India has covered a long journey of 12 years and is moving ahead with a total installed module manufacturing capacity of 2.75 GW. It offers a long range of solar products including Solar panels, PV Cells, PV Encapsulants – EVA & POE, and PV back sheets. RenewSys supplies solar products to over 40 countries.

9. Loom Solar

Loom Solar entered the solar panel manufacturing industry of India in 2018 from Faridabad, Haryana. Currently, it offers solar panels to generate clean energy as well as maintains a channel sales network with over 3500 resellers in over 500 districts of Indian states. The annual manufacturing capacity of Loom Solar stands at 100 MW.