Centre has launched several schemes for promotion of solar energy.
India has achieved the ambitious target of setting up solar power plants of 20,000 MW (20 GW) four years in advance.
The UPA government, at the launch of National Solar Mission in January 2010, had initially set a target for deployment of grid connected solar power of 20 GW by 2022. However, the country recently crossed this landmark four years before the deadline.
As per the latest figures of Central Electricity Authority (CEA), the installed capacity of solar plants was 21.65 GW in March 2018, while the total installed capacity from renewable energy sources is now 69.02 GW. However, in 2015, the Narendra Modi government scaled up the target from 20 GW to 100 GW for grid connected solar power projects, to be achieved by 2022.
Interestingly, solar power tariff has also seen a downward trend in the last few years. The tariff, which was Rs 17.90 per unit in 2010, fell to an all-time low of Rs 2.44 per unit during the auction of 500 MW of capacity at Bhadla in Rajasthan last year. Interestingly, the wind power tariff also dropped sharply to Rs 2.43 during an auction conducted by the Gujarat Urja Vikas Nigam Limited (GUVNL) last year.
As the government continues to focus on increasing renewable energy capacity, solar power tariffs are likely to go further down—below Rs 2 per unit in the next two to three years. The solar power tariffs are discovered through open transparent competitive bidding.
The Centre has launched several schemes for promotion of solar energy. It is also providing various fiscal and promotional incentives like capital subsidy, waiver of inter-state transmission system charges and losses and financing solar rooftop systems as part of home loan. However, at present, the indigenous manufacturing capacity is not adequate and thus the country is dependent on both imported as well as domestically manufactured solar panels/equipment.
India has an ambitious 175 GW clean energy target by 2022, of which 100 GW will come from solar projects and reset from other sources like wind and hydro. However, at present, solar power developers have been sourcing solar equipment from countries like China, where they are cheaper.