India is a booming country in Asia and as the economy of the country is expected to grow, the energy requirement and production is also projected to increase.
India generates its energy from renewable resources like solar which comprises of about 29% of its total renewable energy regeneration. By 2020, solar energy is said to increase at a growth rate of 56% in the next 5 years making the country, the 6th biggest solar energy producer globally. To boost the solar industry sector, the government is allowing a 100% foreign direct investment to attract potential investors in the booming solar industry of the country.
Solar industry profile
As the country experiences energy deficit, it eventually geared towards the use of renewable energy. In 2000, the country reported a 13% energy deficit and with the use of renewable energy and other sources, the said deficit rate decreased to 5% in 2015. The sources of energy in India comprise of the following:
- Coal: 53%
- Oil: 34%
- Renewable: 7%
- Gas: 5%
In terms of renewable energy distribution, solar energy generation is expected to increase 10 times in the next 5 years. In fact, the country is said to be the 6th biggest produce of solar power by 2020. In the 2014 ranking, Germany ranks number 1 with 35,5 GW followed by China, Italy, Japan and the US. But a 2020 projection, sees India in the 6th spot with China landing the first spot, followed by Germany.
Demand for solar energy
With the abundance of solar energy source which is the light and the decrease prices of solar cells, many now prefer the use of solar energy. The country is using its advantages as it receives solar energy due to the fact that it has the huge land area covered by solar. In terms of the cost, constant innovation has paved the way for the declining cost of the solar cells which makes it a good alternative to conventional energy.
As there is a positive projection of demand for solar energy, the government has come up with investment policies that will entice investors and promote the solar industry. 100% FDI is allowed for renewable energy. To further boost solar power projects, the government has invested USD 125,000 in key areas like Gujarat, Rajasthan and Tamil Nadu.
Japanese telecom giant, SoftBank, Taiwanese Foxconn and India’s Bharti Enterprise, 3 major conglomerates have joined hands to invest USD 20 billion for a massive solar power setup in Andhra Pradesh.
As the industry is gearing towards continuous growth and development, opportunities in the form of innovative technology and a global delivery hub are available on the Indian subcontinent. Another opportunity presents itself in the form of export partners for silicon and solar wafers required to make solar panels. Due to the shortage of electricity, off grid, solar applications are also required in India.
Through market research, overall innovation, electricity provision, raw material export and processing are some of the many business opportunity areas in the Indian Solar Energy Industry.