Category: Blog

Green Energy Efficient Buildings in India: Key to Sustainable Growth

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1. Green Energy: The Key to Sustainable and Energy-Efficient Buildings

Meeting the ever-growing demand for energy to fuel the requirements of a burgeoning economy poses a major challenge for Indian policymakers. Given the considerable economic and environmental cost of producing every unit of electricity, energy-efficient buildings with sustainable green energy practices have emerged as the focus of attention. The effort will be really worth it when you consider that buildings account for the highest electricity consumption worldwide, estimated to be 40% by the International Energy Agency.

Energy-Efficient Buildings

2. Urbanization and the Rise of Green Energy-Efficient Buildings

As India embarks on rapid urbanisation, the unprecedented upsurge in new constructions will be accompanied by a manifold increase in electricity demand. The impending situation calls for designing and developing green energy-powered buildings of the future by incorporating energy-efficient features and sustainable practices. Hartek Group, with its expertise in renewable energy solutions, is at the forefront of promoting such sustainable infrastructure. Though the construction cost of green buildings may be higher, they turn out to be cheaper in the long run as they consume less than half the energy compared to conventional buildings.

3. The Financial Viability of Green Energy in Building Construction

A study conducted by TERI to investigate the financial feasibility of green building investments revealed that the incremental capital investment is recovered with paybacks of one to three years. The study emphasized that energy-efficient strategies, combined with the use of green energy solutions, result in significant long-term savings and lower operational costs.

4. Smart Grids and Renewable Energy Integration in Green Buildings

Besides a zero energy/passive solar building design and low-energy building materials, green buildings typically involve energy-efficient equipment and the integration of renewable green energy technologies for various applications. Efficient power supply depends on a robust transmission infrastructure, characterized by smart grid applications like Supervisory Control and Data Acquisition (SCADA). These smart grids enhance energy efficiency through real-time monitoring and automation.

5. Enhanced Energy Efficiency with Green Building Designs

Unlike conventional buildings that rely on multiple independent systems for lighting, heating, and cooling, green energy buildings connect these systems, significantly reducing operating costs. An energy-efficient building balances all aspects of energy consumption by providing an optimized mix of passive solar design strategies, energy-efficient equipment, and renewable green energy sources.

6. Architectural Innovation for Green Energy Efficiency

State-of-the-art engineering and architectural techniques not only add to the strength and stability of the structures but also reduce maintenance costs. Optimized space design, featuring large window openings for natural lighting and cross-ventilation, enhances the flow of energy. The linear design significantly reduces construction and maintenance costs by aligning water supply pipes, sewerage lines, electrical conduits, and HVAC ducts in a single system.

7. Energy Conservation Building Code (ECBC) Compliance

To promote green energy adoption, the Bureau of Energy Efficiency introduced the Energy Conservation Building Code (ECBC) for new commercial buildings in May 2007. The target for the 12th plan is to make 75% of all new commercial buildings ECBC-compliant, but enforcement varies across states. Only seven states and one union territory have notified and adopted ECBC, while others are still in the implementation phase.

8. Overcoming Challenges in Green Energy Building Adoption

Despite India’s ambitious goal of reducing the emissions intensity of its GDP by 33–35% by 2030, green energy-efficient buildings still account for just 1% of the total building stock. With 400% growth in floor area projected by 2050, energy efficiency in residential segments must become a priority. Hartek Group is dedicated to promoting sustainable infrastructure through innovative solutions. To learn more about our green energy initiatives, connect with us today! Standardizing green energy measures for residential buildings and providing tax benefits, incentives, and attractive financing schemes will be essential to achieving large-scale adoption.

FAQ’s:-

1. What is Green Energy in building construction?
Green Energy in building construction refers to using renewable energy sources and energy-efficient technologies to reduce environmental impact.
2. How do Green Energy buildings reduce costs?
Green buildings consume less energy, lowering operational costs and offering long-term savings despite higher initial investments.
3. What are the benefits of Green Energy in urbanization?
Green Energy in urbanization promotes sustainable growth, reduces emissions, and improves energy efficiency in rapidly expanding cities.
4. How does the Energy Conservation Building Code (ECBC) promote Green Energy?
The ECBC mandates energy efficiency standards for new commercial buildings, encouraging the adoption of Green Energy solutions.
5. What role do smart grids play in Green Energy buildings?
Smart grids enhance energy efficiency by integrating automation and real-time monitoring into Green Energy-powered buildings.

Solar Power Is India’s Green Future

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In 2018, the solar power industry saw a 24% increase in its y-o-y capacity additions, while hydropower saw 2% and wind energy saw a 10% increase. Although a majority of the solar capacity additions were dominated by Asia, new markets like Brazil, Saudi Arabia, Egypt, Spain, and Latin America saw considerable growth.

India’s Solar Expansion and Challenges

The remarkable upsurge in private participation in the power sector in India and the government’s thrust on renewable energy is in sync with the country’s solar overdrive in pursuit of the 100-GW target for solar projects, but there are impeding issues like tender cancellations of mega projects. China’s policy shift, feed-in-tariff cut in Japan, and policies levying of taxes and duties on the solar energy industry in India limited solar sector growth in 2018, but the solar sector is expected to bounce back in 2019.

Government Push for Rooftop Solar

With the tender process picking up pace in FY 2019-20, we have a lot to look forward to this year. Pursuing a 40-GW target, the government is also all set to give a big push to the rooftop segment through favorable policies like net metering.

The Future of Solar Energy in India

Solar Power is India’s Green Future as it presents a great opportunity to phase out fossil fuel and its growing expenses while transforming the country with industrial, social, and economic growth. The future of solar energy in India largely depends on achieving the ambitious solar power generation target of 100 GW by 2022. With the cumulative solar capacity going up to 36.36 GW as of June 30, 2019, the market sentiment is upbeat because of the record number of installations.

Investment Needs for Solar Growth

We believe that by 2030, India’s solar industry is poised to grow phenomenally. The country will need $250bn in green energy funds from 2023 to 2030. Investment opportunity for over $30bn per year is expected to come up in the next decade, according to the Economic Survey.

India’s Renewable Energy Goals by 2030

Significantly, India is running the world’s largest renewable energy program. Solar power generation holds the key to the unprecedented growth India needs to register to get to the magic figure of 100 GW. Fuelling the ever-growing needs of practically all the other key sectors, the power sector forms the backbone of our rapidly expanding economy. Since sustainability is at the heart of all development efforts directed towards building a New India, the country is aiming at increasing the share of renewables in the total installed power capacity to 50% by 2030 with a major chunk coming from solar energy.

Cost Efficiency and Competitive Bidding in Solar Energy

It is pertinent to mention here that about 40 percent of the power capacity installed in India this year is solar. All-out efforts at transforming the energy mix are underway. In the Indian solar market, almost every passing tender has promised to deliver cheaper electricity. The solar industry is entering a period of cost efficiency, thanks to advances in technology and competitive bidding. Solar power tariffs in India have plunged to a record low of Rs 2.44 per unit, which will push demand in a big way.

Government Initiatives and Policy Support

The solar industry has witnessed rapid growth in the last few years and is expected to grow even more in the coming years. To encourage the shift from environmentally detrimental sources of energy to cleaner alternatives, the government has been playing an active role by introducing several incentives, such as GBIs, capital, and interest subsidies, which are likely to reduce the dependency on conventional energy and increase adoption of solar power.

Encouraging Domestic Solar Panel Manufacturing

To further encourage the adoption of solar power, a slew of welcome initiatives has been recently introduced by the government, which have been welcomed across the industry. This includes the imposition of BIS standards on solar imports, besides ensuring adherence to the quality of products instead of mere price benefits. Another welcome step in the concept notes released by the MNRE proposes the development of 10 GW of manufacturing capacity over a period of five years.

The Economic and Environmental Benefits of Solar Power

One of the biggest advantages of solar power is the ability to avoid the politics and price volatility that is increasingly characterizing fossil fuel markets. While the prices of fossil fuels have increased, the per watt price of solar energy production has more than halved in the past few years and is set to become even cheaper in the near future as better technology and economies of scale come into effect.

India’s Position in the Global Solar Market

Renewables account for a sizeable share of the power capacity additions, highlighting the significant investment flowing into the solar sector in particular. No wonder, India has emerged as the third-largest solar market globally. But we still have a long way to go to become a global solar superpower like China and the US.

Investment Challenges and the Need for Foreign Direct Investment

To achieve the target, India needs heavy investment in the coming years. A major part of it has to be raised within the country, as the renewable sector could so far only attract a foreign direct investment (FDI) worth $7.5 billion in the last 18 years (2000-2018), according to a report by the India Brand Equity Foundation.

Challenges in Domestic Solar Panel Manufacturing

The solar sector can accelerate its growth by focusing on manufacturing and supporting the domestic solar panel manufacturing industry with sizeable investments. This will help India scale greater heights like China, which penetrated foreign markets by undercutting their market prices.

Infrastructure and Transmission Capacity Issues

We need to pick up on the domestic manufacturing front. Various efforts by the Solar Energy Corporation of India (SECI) to attract bids for the development of the inter-state transmission system for solar power evacuation have gone in vain. Solar power generation has to be in sync with the growth in transmission capacities owing to evacuation challenges, otherwise, we may be in for a slowdown.

Rooftop Solar and the Need for Rapid Expansion

Though rooftop solar is the fastest-growing renewable energy segment in India, the installation capacities must rapidly increase if the nation is to meet its ambitious renewable energy target by 2022. Conducive policies, financial support, and consumer awareness should form our focus of attention.

The Path to Achieving the 100-GW Goal

The industry needs to be steered in the right direction to take us closer to the 100-GW goal. We need integrated energy planning, favorable policies, and investments across the value chain. Release of RTC tenders and incentives for OA charges are critical.

The Role of the International Solar Alliance

India should leverage its position in the 121-nation International Solar Alliance by assuming a leadership role to make way for greater growth through favorable policies and coordinated efforts. As a global solar superpower in the making, we ought to wrest this initiative. With a proactive approach driven by all these factors, India’s solar power will usher in a green and sustainable future.

Frequently Asked Questions:

1. Why is solar power important for India’s energy future?
Solar power helps reduce reliance on fossil fuels, cuts energy costs, and supports India’s goal of achieving 100 GW of solar capacity for a sustainable future.

2. What challenges does India face in expanding solar power?
Challenges include policy uncertainties, transmission infrastructure limitations, financial constraints, and a lack of domestic solar panel manufacturing capacity.

3. How is the Indian government supporting solar energy growth?
The government provides incentives such as subsidies, net metering policies, and favorable regulations to boost solar adoption across residential, commercial, and industrial sectors.

4. What role does rooftop solar play in India’s renewable energy expansion?
Rooftop solar is the fastest-growing renewable segment, especially in commercial and industrial sectors, but residential adoption needs more policy support and incentives.

5. How can India become a global leader in solar power?
India needs to enhance domestic solar manufacturing, attract investments, improve grid infrastructure, and leverage its leadership in the International Solar Alliance.

Indian Solar Power Sector

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India’s Booming Solar Power Sector: Challenges and Opportunities

The Rapid Growth of India’s Solar Power Industry

India’s power sector is expanding rapidly, fueled by the increasing demand of a growing economy. At the forefront of this transformation is solar power, which has seen an extraordinary 32-fold growth in just six years. With developers launching one mega solar power project after another, India is on track to achieve its ambitious renewable energy targets. However, despite these impressive advancements, significant challenges remain.

Addressing the Transmission and Distribution (T&D) Challenges in Solar Power

One of the primary obstacles to India’s solar power expansion is the lack of an efficient and reliable transmission and distribution (T&D) infrastructure. The solar power being injected into the grid is not matched by corresponding T&D upgrades, creating bottlenecks that could lead to system failures. If states fail to enhance their T&D capabilities, they risk facing critical grid congestion issues, similar to what has been observed in Punjab. Hartek Group emphasizes that investments in smart grid technology and infrastructure are crucial to optimizing solar energy distribution across the country.

Solar Energy

The Urgent Need for Upgrading Grid Infrastructure

India’s solar power expansion must be accompanied by a robust and modernized grid system. To minimize transmission losses and ensure efficiency, a gradual shift to higher voltage transmission lines—from 440 KV to 765 KV and eventually 1,200 KV—is necessary. Additionally, states must proactively plan their T&D networks in parallel with solar project developments, as seen in Andhra Pradesh. National Green Energy Corridors, spearheaded by the Power Grid Corporation of India Ltd (PGCIL), play a vital role in streamlining inter-state transmission, but state governments must also invest in localized grid enhancements.

Grid Connectivity Challenges for Large Solar Projects

While rooftop solar power integrates smoothly into existing networks, large-scale ground-mounted solar projects present significant challenges. Unlike conventional power plants that generate electricity consistently, solar energy is intermittent—fluctuating throughout the day. This unpredictability makes it crucial to enhance grid resilience through smart grid solutions and advanced energy storage technologies.

The Role of Energy Storage in Solar Power Optimization

A major limitation of solar power is the lack of efficient storage solutions. India must invest in advanced battery technologies to store excess energy generated during peak sunlight hours for use at night. Countries like the United States and several European nations are making significant strides in solar battery innovations, and India must follow suit to ensure uninterrupted solar energy availability.

Boosting Research and Development in Solar Technology

Reducing the cost of solar power through indigenous research and development (R&D) is imperative for long-term sustainability. India has the potential to become a global leader in photovoltaic (PV) technology by fostering industry-government collaboration and investing in outcome-driven R&D. Enhancing the efficiency of solar modules and inverters will further drive cost reductions and improve overall energy output.

Navigating Financial Challenges and Sustainable Investments in Solar Energy

While government incentives, tax concessions, and subsidies have propelled the solar industry forward, long-term sustainability requires a transition away from grant dependency. Solar developers must adopt financially viable business models to withstand potential fluctuations in policy-driven incentives. Strengthening state utilities to ensure reliable solar power procurement will be critical in maintaining growth momentum.

Keeping Pace with Rapid Technological Advancements in Solar Power

The fast-evolving nature of solar technology presents both opportunities and challenges. Innovations in solar panels, inverters, and storage solutions require continuous adaptation from developers. Companies that stay ahead of these advancements will gain a competitive edge in the global market.

India’s Path to Becoming a Global Solar Power Leader

With abundant sunshine and vast expanses of non-cultivable land, India has the potential to emerge as a solar power superpower. Favorable government policies, technological innovation, and infrastructure advancements will be key in overcoming existing challenges. By embracing these solutions, India can not only meet its ambitious renewable energy goals but also set a global benchmark in sustainable solar power utilization.

Conclusion

The Indian solar power sector is on an unprecedented growth trajectory. However, addressing transmission inefficiencies, investing in energy storage, and fostering technological innovation will be essential for sustained progress. If you are looking for expert solutions in solar power infrastructure, Hartek Group is here to help. Contact us today to learn more about how we can support your renewable energy goals. With strategic planning and continued investment, India can harness its full solar power potential and lead the world in renewable energy transformation.

FAQ’s:-

1. What are the main challenges in India’s solar power sector?
India’s solar power sector faces grid congestion, transmission inefficiencies, energy storage limitations, and financial sustainability issues.

2. Why is transmission and distribution (T&D) crucial for solar power?
Without efficient T&D infrastructure, excess solar energy cannot be transmitted effectively, leading to grid instability and energy losses.

3. How can energy storage improve solar power reliability?
Advanced battery storage systems allow excess solar energy to be stored during the day and used at night, ensuring continuous power supply.

4. What role does technology play in India’s solar power expansion?
Innovations in solar panels, inverters, and smart grids help enhance efficiency, reduce costs, and integrate solar power more effectively into the grid.

5. Can India become a global leader in solar power?
Yes, with strategic investments in infrastructure, R&D, and policy support, India can set global benchmarks in renewable energy and solar power adoption.

Why Renewable Energy Evacuations Demands a Decisive Push

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Installing The New Renewable Energy Demand Capacity Has Its Due Share Of Problems But Integrating It With A Nascent Grid Poses A Much More Formidable Challenge.

Up against a staggering renewable energy demand target of 175 GW by 2022, India has its task cut out. Installing the new capacity has its due share of problems but integrating it with a nascent grid poses a much more formidable challenge. The country’s solar power generation capacity has gone up 32 times in a span of just six years, from 0.5 MW in 2011 to 16 GW now, but the transmission infrastructure is far from prepared to evacuate the kind of solar power being injected into the grid.

Renewable Energy

Power Generation: Renewable Energy Demand

With the transmission system failing to keep pace with the increase in solar power generation, the glaring mismatch is bound to put immense pressure on the present transmission infrastructure, a situation which we can ill-afford bearing in mind the high stakes in the solar sector. Hartek Group, a leading player in renewable energy solutions, emphasizes the need for robust grid infrastructure to support the growing solar capacity.

We still have lessons to learn from India’s worst blackout of 2012, which plunged the entire North India into darkness for two days. Given the sporadic nature of electricity from clean energy sources like solar and wind, there is a need to ensure the transmission infrastructure is capable of handling the sudden surges in electricity during peak hours. With the evacuation system not yet ready, we are witnessing a situation where solar plants are being constrained to restrict generation, which is resulting in huge financial losses to developers.

Green Energy Corridors:

Though the government has embarked on a $3.5-billion Green Energy Corridors (GEC) programme to overcome these challenges of power evacuation by strengthening the grid network, it is a daunting task which has to be taken up on a war footing to be able to deliver the desired results. The biggest challenge before us is to ensure that transmission systems are in place before the solar projects are ready. Considering that executing transmission projects takes up to five years as compared to 12-18 months for solar projects, we need to act urgently and decisively.

The GEC programme needs further push in order to ensure sufficient thrust from the industry in solar-rich states like Gujarat and Rajasthan. The mismatch between the number of demand centers and the available corridors is also a major concern. For instance, the 1,000-MW substation project at Kaythar in Tamil Nadu, which was scheduled to be commissioned earlier this year, has yet not seen the light of day for the simple reason that independent power producers are more inclined to evacuate the power to Gujarat and Maharashtra rather than the Northeast through the planned corridor. Distance can also be a major issue in India with six states in the western and southern parts accounting for 80% of the country’s installed solar capacity but only 38% of the power demand. The GEC programme is aimed at evacuating power from renewable energy-rich states to other states through 765 kV and 400 kV high-voltage transmission lines.

With storage facilities for solar energy lacking, how we manage the power generated at a specific point presents a stiff challenge. Maintaining grid stability can pose a major problem when a large amount of solar power is injected into the grid. Things can become even more difficult when the share of renewable energy in total power generation goes up in due course of time, but the constant flow of power is still lacking. The situation can, however, be overcome with modern technological breakthroughs and advancements like smart grids and solar energy storage solutions. Since many large solar facilities are in remote locations like deserts where grid infrastructure does not exist, we need to find a viable way to connect to and store solar energy, as and when needed. Bearing this in mind, the three-year action plan formulated by the Ministry of New and Renewable Energy has asked the Solar Energy Corporation of India to focus on storage solutions.

Though there has been considerable progress in coordinating generation and transmission at the state level to ensure sufficient in-state transmission, a lot more remains to be done. States should take it upon themselves to avoid delays in project execution by providing last-mile connectivity between inter-state and intra-state transmission lines, which is part of their responsibility. While the work at the national grid level is making some progress, the inadequate preparedness of states at the distribution grid level is a cause for concern.

Solar Power Developers:

Some of the states have even started asking wind and solar power developers to curtail generation in view of the insufficient transmission capacity. As a result, project developers are incurring revenue losses. To counter the situation, the Ministry of New and Renewable Energy has issued an advisory asking state power utilities not to direct renewable energy developers to reduce generation.

The inter-state transmission corridor being developed by Power Grid Corporation of India will help only if the transmission utilities in states supplement the effort by developing and strengthening their transmission infrastructure. Only then can we exploit the renewable energy potential of places like Ladakh and Jaisalmer and meet the growing power requirements of regions with high consumption. On the brighter side, states need not be worried about fulfilling their renewable purchase obligations, considering that the renewable energy costs are expected to decline once the inter-state sale of renewable energy picks up through the green energy corridor. Making the proposition even more viable, they have been exempted from paying the inter-state transmission system charges.

However, the efforts have to be doubled. There is a dire need to have a mechanism in place to ensure coordination between renewable energy generation and transmission at the state level so that there is sufficient in-state transmission. The scheduling and dispatch between states and regions must also be coordinated on priority. The government should come up with regulatory and policy guidelines which optimize cost-effective capacity expansion. In view of the intermittent nature of renewable energy, it is imperative to equip states with state-of-the-art renewable energy forecasting tools.

The Green Energy Corridor needs to be significantly widened so as to accommodate 50 more ultra-mega solar parks, in addition to the 34 under construction. While upgrading the transmission infrastructure to cater to the ever-growing needs of the future, Hartek Group emphasizes that the government should also not lose sight of the fact that the country’s per capita power consumption is projected to grow four times by 2030. These factors call for massive investments in the T&D segment for which private participation is a must. It is time for the policymakers to ensure the power sector is ready for the turnaround.

FAQ’s:-

1. What is driving the demand for renewable energy in India?
The growing need for sustainable power, government initiatives, and rising energy consumption are fueling renewable energy demand in India.
2. How does grid infrastructure impact renewable energy demand?
Inadequate grid infrastructure limits the ability to transmit and store solar and wind energy, creating challenges in meeting rising renewable demand.
3. What are Green Energy Corridors (GEC) in India?
Green Energy Corridors are transmission networks designed to evacuate renewable energy from solar-rich states to demand centers across India.
4. How does renewable energy storage affect demand?
Limited storage capacity hinders consistent power supply, impacting the reliability of renewable energy and slowing down its demand growth.
5. What role does policy play in meeting renewable energy demand?
Government policies promoting grid expansion, energy storage, and renewable purchase obligations are vital in meeting India’s energy demand.

Economy of Scale Holds Key to Renewable Energy Re-Manufacturing

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Leveraging the ‘Make in India’ Campaign for Renewable Energy Growth

The renewable energy industry can draw a lot from the government’s flagship ‘Make in India’ campaign to bolster its prospects.

The Rise of Renewable Energy and Its Impact

With sustainability being the order of the day, manufacturers across the globe are increasingly developing more and more efficient ways of tapping renewable energy. Aimed at reducing dependence on fossil fuels, this welcome trend is contributing to clean energy competitiveness. Making giant leaps in the renewable energy sector, India, too, is at the heart of this transition.

India’s Renewable Energy Growth Trajectory

In 2016-17, the output of renewable power projects went up by 26 percent, making the Indian renewable energy sector the fastest-growing in the world. According to the National Resource Defense Council, more than 1 million full-time equivalent jobs will be created by the solar industry alone by 2022. This includes more than 2 lakh engineering jobs and over half a million skilled sector jobs. The wind sector, on the other hand, will help generate 1.9 lakh jobs in the next five years.

‘Make in India’ and Its Role in Renewable Energy

The renewable energy industry can draw a lot from the government’s flagship ‘Make in India’ campaign to bolster its prospects. Hartek Group, equipped with high-quality manpower to support the domestic solar and wind manufacturing markets, is helping India emerge as a global manufacturing powerhouse catering to all the needs of the renewable energy sector.

Opportunities for Domestic Manufacturers

The ambitious target of scaling up clean power production to 175 GW by 2022 will create massive opportunities for domestic manufacturers. To capitalize on this growth, manufacturers must innovate and adapt to market demands.

Innovation and Competitiveness in Solar Manufacturing

The future of the solar manufacturing business will depend on how Indian companies beat the competition through constant innovation, quality improvement, and marketing. Despite competition from Chinese manufacturers, India holds a massive market potential for solar panels.

Government Support and Policy Initiatives

Government Support and Policy Initiatives

To realize this potential, domestic manufacturers should prioritize clean energy strategies. The government can support this by offering:

  • Incentives and subsidies

  • Effective energy and solar skill development policies

  • Establishment of more module assessment labs

  • Encouragement for R&D initiatives

  • Reduction of procedural delays in executing projects

Challenges in Domestic Solar Manufacturing

Despite the immense scope, challenges remain. Lack of scale and an underdeveloped supply chain hinder growth. Flexible incentives and financing options, effective net metering policies, and anti-dumping duties on foreign solar module manufacturers are critical needs.

Strengthening India’s Solar Industry Competitiveness

To make the Indian solar industry globally competitive, the government should focus on a larger policy framework that supports domestic manufacturing plans. This will help India:

  • Control the solar supply value chain

  • Increase revenue and profitability

  • Address issues related to transport, infrastructure, taxation, and power outages

Building a Skilled Workforce

The government should create a skilled workforce by introducing solar manufacturing courses under the National Skill Development Mission. Supporting large-scale projects and fully integrated manufacturing plants under the ‘Make in India’ policies will be essential.

Economies of Scale and Cost Reduction

To achieve economies of scale, India must reduce manufacturing costs. This will enable strategic innovation and promote exports, boosting the overall competitiveness of the industry.

Global Trends and Manufacturing Clusters

The government should take cues from global trends by establishing integrated solar industrial clusters. This will foster better industry linkages, enhance manufacturing efficiency, and support innovation.

Impact of Global Competition

Some of India’s largest solar equipment manufacturers are facing financial losses due to competition from Chinese firms, which prioritize low-cost power over local manufacturing. Interestingly, prior to the National Solar Mission, Indian solar firms were focusing on OEM manufacturing and exports, generating billions in export revenues. However, with the entry of Chinese competitors, module prices fell sharply, resulting in a substantial market share loss for Indian companies.

Government Measures to Boost Domestic Manufacturing

To correct this imbalance, the government offers 20-25 percent capital subsidies and other incentives under the ‘Make in India’ campaign. The Viability Gap Funding (VGF) mechanism and GST relaxation (waiving 12% countervailing duty and 5% VAT on domestic solar components) aim to boost domestic solar production.

Future Growth Potential

According to government capacity targets, India’s annual solar module market could exceed $10 billion in the coming years. However, to avoid straining the power infrastructure, the government and industry must implement corrective measures.

Fostering a Sustainable Future

A ‘reduce, encourage, deregulate’ policy for power generation can benefit Indian manufacturing by ensuring cheap and readily available power. The government plans to spend Rs 210 billion ($3.1 billion) on India’s solar panel manufacturing industry, aiming to increase photovoltaic capacity and create an export-oriented sector.

India’s Renewable Energy Investment

In 2016, India accounted for 5 percent of the world’s renewable energy capacity, investing $9.7 billion (Rs 64,990 crore), according to the Renewables Global Status Report 2017 by REN21. Direct and indirect renewable energy jobs (excluding large hydropower) reached 8.3 million globally in 2016.

Challenges with Cheap Imports

Despite the growth, domestic manufacturers face challenges from cheap imports, with Indian firms accounting for only 13 percent of supply. The Indian Solar Manufacturers’ Association has called for safeguard duties on solar cells and modules.

Funding Challenges

Another issue plaguing Indian manufacturers is the lack of access to funding for building manufacturing units. Private banks remain hesitant to offer loans at attractive rates.

Favorable Government Policies

The government’s efforts, including DCR quota for government-based energy projects and financing support, have benefited domestic solar manufacturers. However, further support is needed.

Positive Outlook for Domestic Manufacturing

The Indian government is committed to supporting domestic manufacturing. Plans to release a new solar manufacturing policy with VGF subsidies will help Indian companies compete globally.

Solving Macro Challenges

To promote domestic manufacturing, India must address macro challenges such as:

  • Ease of doing business

  • Infrastructure development

  • Affordable financing

  • Reliable local raw material supply chains

Solving Macro Challenges

Promoting Private Investment

The Ministry of New and Renewable Energy encourages private investment by offering fiscal and financial incentives and allowing 100% foreign direct investment (FDI) in renewable energy.

Boosting Solar Inverter Industry

The solar inverter industry in India, still in its early stages, will expand as domestic solar module manufacturing strengthens.

Increasing Domestic Capacity

To meet annual solar targets, India must increase domestic manufacturing capacity. For reliable solar solutions, contact Hartek Group – your trusted partner in renewable energy. The DCR policy under the ‘Make in India’ plan supports this initiative, but more state-level mandates are needed to ensure sustainable growth.

FAQ’s:-

1. How does the ‘Make in India’ initiative support renewable energy?
The initiative boosts domestic solar and wind manufacturing through incentives, subsidies, and policy support.
2. What are the key challenges in India’s renewable energy sector?
Challenges include competition from imports, funding constraints, and infrastructure gaps affecting domestic manufacturing.
3. What government policies promote renewable energy in India?
Policies include Viability Gap Funding, GST relaxation, skill development programs, and incentives for domestic manufacturers.
4. How does renewable energy contribute to job creation in India?
The sector is projected to generate over 1 million jobs in solar and 1.9 lakh jobs in wind energy by 2022.
5. What is India’s target for renewable energy capacity?
India aims to scale up renewable power production to 175 GW by 2022, creating growth opportunities for manufacturers.

Falling Solar Tariffs Bring Opportunities Galore, But Present Challenges Too

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Driven by favorable factors like falling module prices, stable exchange rate, and lower cost of capital aided by a likely cut in interest rates, the per MW cost for solar is likely to drop by 10-12% this year, but matching timely execution with optimum quality will be a challenge for developers if these factors do not come into play.

rooftop solar panel

Impact of Falling Solar Tariffs

Falling solar tariffs have certainly buoyed the Indian solar industry, and solar installations are expected to grow at a rapid pace this year. The recent bid of Rs 2.97/KWh for the Rewa mega project has created a new benchmark for the solar sector.

Growth and Future Projections

We have already crossed 10 GW in terms of cumulative installed solar capacity, and another 8-10 GW is likely to be added this year alone. To achieve the ambitious target of 100 GW by 2022, 15-20GW needs to be added every year.

Key Factors Affecting Solar Costs

Most of the tenders have an execution period of 12-18 months, so the current tariffs are based on the upcoming installed cost of solar, which in turn depends on three major factors—module prices, cost of capital, and exchange rate.

Challenges in Execution and Pricing Pressure

In this scenario, the per MW cost for solar is projected to drop by 10-12% this year. This is a welcome sign for industry players, but it may also put tremendous pressure on them if these factors do not come into play.

Rising Demand and Industry Trends

We expect a lot more tenders for solar power, both in CAPEX and RESCO models, and an increase in demand from the industry. But this rising demand will be accompanied by a strain to reduce prices.

Struggles of Indian Solar Manufacturers

Indian solar module manufacturers, especially the smaller players, are finding it hard to compete. Moving forward, it is going to be very difficult for them to reduce prices as much as their Chinese counterparts.

Market Consolidation and Competitive Landscape

Cashing in on the fast-growing solar market, many small and medium players have forayed into this sector as developers or EPC companies in the last few years. Small developers unable to compete due to falling tariffs are being slowly phased out by larger companies.

Impact on EPC Companies

When it comes to large projects, EPC companies are also likely to face a similar scenario. On the other hand, the number of small projects (1MW or less) is expected to go up as the demand from the industry picks up, giving smaller companies a chance to be more competitive.

Importance of Cost, Time, and Quality in EPC Success

The expectations of reduced costs are rising with falling tariffs. Other than module prices, a reduction in Balance of System (BoS) costs is also expected due to better design of inverters, MMS, foundation, etc.

Challenges in Procurement and Project Management

Timely delivery of projects is another challenge for smaller EPC players. Issues in project management and logistics can result in delay, and developers pass on the heavy penalty to EPC players.

Quality and Skilled Workforce Constraints

Quality is an integral factor when it comes to operating solar power plants for 25 long years, efficiently, economically, and reliably. EPC players are under constant pressure to reduce costs and yet deliver optimum quality.

Increasing Energy Generation and Market Competition

With falling solar tariffs, developers will try to generate more energy to increase the Internal Rate of Return (IRR) and reduce the level of risk on the investment.

Benefits for Indian Consumers

But this is a great time for Indian consumers—industrial, institutional, and residential—to install solar power plants. For industrial consumers, grid parity was achieved in most of the state’s last year, and residential consumers are also likely to achieve it soon.

Financial Benefits and Payback Period

The levelized cost of solar electricity for an industrial consumer is now 25% less than the cost of grid power in most states. The savings from solar, combined with accelerated depreciation benefits, have reduced the payback period to less than four years.

Unrealistic Expectations from Falling Tariffs

One of the drawbacks of falling tariffs for consumers is the unrealistic expectations they create about the cost of solar installations. The tariff of Rs 2.97/KWh in Rewa is for a 250-MW project.

Growing Interest and Future Prospects

Nevertheless, we are witnessing a heightened interest from our industrial customers. We are also working on a special product specifically for residential consumers as we anticipate a spike in demand from the residential category as well.

Vast Project Pipeline Govt Impetus Will Propel Solar Power into High-Growth Trajectory Next Year

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The power sector is growing at a rapid pace to cater to the ever-increasing requirements of a fast-developing economy, and it is solar power, which is setting the tone for this unprecedented growth, emerging as the fastest growing energy source in India. With more and more developers pumping in huge money to line up one mega solar power project after another and the government providing the much-needed impetus to achieve the 100-GW target, the solar sector is growing by leaps and bounds. Backed by a project pipeline of more than 20 GW, this upward trend will pick up momentum in 2017.

India’s installed solar capacity recently crossed the 10-GW mark, a milestone that should act as a stimulus for unprecedented capacity additions in years to come. Far exceeding the growth projections of leading market analysts, solar power generation has more than doubled in the past one year, and it will not come as a surprise if the installed capacity records a threefold increase by the end of next year.

In fact, the way things are shaping up, especially in southern states like Telangana, Andhra Pradesh and Karnataka and traditionally well-performing states like Madhya Pradesh and Rajasthan where many big projects are coming up, we may soon see the volumes growing exponentially. No wonder, India is all set to emerge as the world’s third largest solar market next year, after China and USA.

The coming year will also witness the execution of many large solar parks. Encouraged by an enthusiastic response from the private sector to the solar park scheme, the government is planning to double this capacity from 20 GW to 40 GW.

solar power energy

Going by the constantly declining tariffs, which have now touched the Rs 3 per unit mark, we are likely to achieve grid parity in 2017 itself, thus preparing the ground for high-trajectory growth. With costs of solar panels declining steadily and states like Haryana and Telangana coming up with favorable policies, the rooftop segment is also expected to grow phenomenally in 2017. Better implementation of net metering regulations and disbursal of subsidies, coupled by the renewed focus on increasing rooftop solar deployment on government buildings, will give further impetus to rooftop solar across all consumer segments.

As the industry introduces more and more cost-effective solar PV technologies, off-grid solar opportunities are also poised to grow proportionately. But to ensure that the gains are not offset by the introduction of GST, we expect the government to exempt the solar sector from this tax. We also expect the government to make the solar industry more competitive by providing incentives to domestic module manufacturers and setting aside substantial funds for conducting R&D in more efficient and cost-effective solar technologies so as to reduce dependence on imports. A steep hike in import duty should be affected to prevent cheaper modules from flooding Indian markets.

But all the progress on the solar front will come to nought if we do not upgrade our transmission lines in sync with the heavy doses of solar power being injected into the grid. Preparing for the challenge, the government is in the process of setting up special green energy corridors for the smooth evacuation of solar power, which will be one of the major focus areas in 2017 with eight such transmission corridors coming up across the country.

We will see more and more states constantly upgrading the grids and coming up with new ones to match the outflows created by new solar projects, much on the lines of Andhra Pradesh which has a parallel plan on T&D ready for every solar project. The process has already started in states like Telangana, Punjab, Rajasthan and Madhya Pradesh, which are also stepping up efforts to upgrade grid infrastructure. These developments will give a much-needed boost to the solar EPC industry, bringing new opportunities for up-and-coming companies like Hartek Power.

The favorable business environment will translate into cheaper finance options with banks, financial institutions and funding agencies vying to attract investors. Lower financing costs will only add to the financial viability of solar projects, which many still view as a costly business proposition. With India leading the International Solar Alliance from the front, the government is likely to back the initiative by floating special funds for solar energy and introducing financing measures like clean energy fund, generation-based incentive-linked loan repayment and green bonds to facilitate project developers looking for suitable funding avenues. Requiring an investment of at least $100 billion to get to the 100-GW target, India will also step up its efforts to rope in international funding agencies for more capital.

Considering the pace at which solar projects are coming up, operation and maintenance will be another major thrust area for the Indian solar sector in 2017, opening the doorways to new opportunities for solar solution providers like Hartek Group, which specialises in operation and maintenance as part of its integrated services and solutions. After all, solar plants have to last a good 20-25 years, for which their maintenance on a quarterly basis becomes absolutely necessary.

Last but not the least, solar energy will continue to empower the New India by lighting up many more off-grid remote areas with rooftop plants and generating thousands of jobs. Solar energy holds the key to India’s sustainable and long-term growth, and the growth story has just begun.

Govt Must Act as a Catalyst to Unleash Residential Rooftop Solar Potential in India

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India’s Rooftop Solar Industry: A Promising Future

Chasing a stiff 2022 target of 40 GW, India’s rooftop solar industry is finally coming into its own. Registering a phenomenal growth of 113 percent over the past year, the country’s rooftop solar capacity recently crossed the 1-GW mark. This milestone should inspire the industry to give a much-needed impetus to this nascent segment and set the pace for unprecedented capacity additions in years to come.

Favorable Policies Driving Rooftop Solar Growth

Rooftop solar in India has everything going for it—favorable government policies, streamlined processes, an efficient regulatory mechanism, and an investor-friendly business environment. However, achieving the 40 GW target will require decisive measures and enhanced growth strategies.

Commercial and Residential Market Potential

While the commercial and industrial categories are driving much of the growth, accounting for 63 percent of the installed rooftop solar capacity, it is the dormant residential market that holds enormous potential. Hartek Group believes that if even half of India’s 205 million households install rooftop solar projects with an average capacity of just 2 KW, the country can achieve 20 GW capacity quickly.

Boosting Rooftop Solar

Government’s Role in Boosting Rooftop Solar

The government can act as a catalyst for growth by introducing:

  • Incentive-based mechanisms

  • Formulating effective policies

  • Mandating solar PV installations on all residential buildings

Successful State-Level Policies

More states should follow the Delhi government’s example, which offers a generation-based incentive of Rs 2 per unit (kWh) to residential consumers, over and above the central government capital subsidy of 30 percent. The Delhi government has also allowed third-party solar developers to install solar PV plants, easing the process for residents.

Net Metering: A Game Changer for Rooftop Solar

A well-thought-out net metering policy can significantly impact the growth of rooftop solar. It allows households to:

  • Save on electricity bills

  • Earn from the power they produce

Through net metering, residents can source supply both from the grid and their solar PV plants. If one source stops, the system automatically switches to the other. Reverse net metering is another attractive option, enabling consumers to send excess electricity back to the grid and get remunerated. However, the lack of proper implementation is hindering its potential.

Challenges Facing Residential Rooftop Solar

The major roadblocks hindering growth in the residential rooftop category include:

  • High upfront costs of solar systems

  • Lack of financing options

  • Poor awareness levels

  • Difficulties in operation and maintenance

residential rooftop category

Cost of Rooftop Solar Systems

While the cost of rooftop solar has been progressively declining at a rate of 12% per annum over the past four years, a typical 1-KW solar system without battery costs around Rs 65,000-70,000 with a 30% subsidy. Since solar modules account for 60 percent of a solar PV plant’s cost, the development of cheaper modules and economies of scale will make rooftop solar financially more attractive.

Financing Challenges and Solutions

A major challenge for homeowners is the lack of low-cost financing. Banks and financial institutions should offer low-interest loans for rooftop solar projects, making it as simple as applying for a car or home loan.

Need for Increased Awareness

The lack of awareness about the benefits of rooftop solar also limits its adoption. During solar awareness drives, it was observed that only a small fraction of people knew how rooftop solar projects could:

  • Save on electricity bills

  • Provide assured returns

  • Offer 30 percent subsidies to domestic consumers

To bridge this gap, the Ministry of New and Renewable Energy (MNRE) has introduced a centralized online facility that enables consumers to apply for rooftop solar installations with ease.

Skill Development and Workforce Training

Another issue is the lack of skilled manpower for installation, operation, and maintenance (O&M). While the commercial and industrial categories have sufficient technical manpower, the residential category lacks adequate support.
To address this:

  • A large technical workforce should be trained in solar installation and O&M.

  • Companies like Hartek Power are introducing portable 1-KW and 2-KW kits that simplify installation, making it as easy as installing a satellite dish.

Rooftop Solar for Rural Electrification

Since 70% of India’s population resides in villages, rooftop solar can play a significant role in electrifying rural and remote areas that are not connected to the grid.

  • Decentralized cluster power generation can reduce transmission costs in sparsely populated villages.

  • Rooftop solar offers a cost-effective solution to electrify regions where grid connectivity is challenging.

Rooftop Solar: Powering a New India

By empowering rural India with reliable electricity, rooftop solar is doing what the government alone could not achieve. For reliable rooftop solar solutions, contact Hartek Group – your trusted partner in renewable energy. It is lighting up homes that previously had no access to electricity, creating a foundation for a self-sufficient and sustainable India.

FAQ’s:-

1. What is the current rooftop solar capacity in India?
India’s rooftop solar capacity recently crossed the 1-GW mark, growing by 113% in the past year.
2. What are the key challenges for rooftop solar in India?
High upfront costs, lack of financing, poor awareness, and inadequate technical manpower hinder growth.
3. How does net metering benefit rooftop solar users in India?
Net metering allows users to save on electricity bills and earn by sending excess power back to the grid.
4. What government incentives are available for rooftop solar in India?
Residential consumers get a 30% subsidy, and some states offer additional incentives like generation-based rewards.
5. How can the residential rooftop solar market in India grow?
Increased awareness, low-interest loans, policy support, and simplified installation can boost adoption.

Smart Grid Manufacturer: The Missing Link in India’s Solar Chain

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Enhancing Solar Power Transmission: The Role of Smart Grid Manufacturers

India’s Rapid Solar Growth and the Need for Efficient Transmission

Buoyed by the positive response from the industry and the proactive approach adopted by various state governments, India is now making rapid strides in the solar segment. The country’s solar power generation has increased 14 times in just five years, from 0.5 MW in 2011 to 7 GW today. As a result, the revised solar target of 100 GW by 2022 looks distinctly achievable. However, despite abundant sunshine throughout the year, India’s transmission infrastructure is not keeping pace with the rise in solar power generation.

System Smart Grid Power System

Bridging the Transmission Gap to Avoid System Collapse

If left unaddressed, the widening gap between power generation and transmission infrastructure could put immense pressure on existing transmission lines, potentially leading to system failures. Our transmission networks are not yet equipped to handle the large influx of solar power being injected into the grid. Given the high stakes in the solar sector, breakdowns must be avoided at all costs. This highlights the importance of upgrading transmission and distribution (T&D) lines in states adopting large-scale solar projects. Hartek Group, as a leading player in the power infrastructure sector, is committed to bridging this gap by delivering cutting-edge transmission solutions and smart grid technologies.

The Critical Role of Smart Grid Manufacturers in Solar Integration

Smart grid technology is the key to ensuring efficient power transmission and distribution. A smart grid manufacturer plays a crucial role in modernizing India’s energy infrastructure by integrating advanced grid solutions that optimize solar energy flow. The adoption of smart grids can significantly reduce transmission losses, improve grid stability, and enhance overall energy efficiency.

State-Level Initiatives: Lessons from Punjab and Andhra Pradesh

Punjab, which is on track to achieve 1 GW of installed solar capacity, faces challenges due to its outdated T&D infrastructure. To accommodate this additional power load, the Power Grid Corporation of India Ltd has been tasked with building separate transmission lines. However, the responsibility of intra-state grid expansion lies with local governments. On the other hand, Andhra Pradesh sets a noteworthy example by planning its T&D upgrades parallel to its solar expansion, ensuring a smooth transition to renewable energy.

Addressing T&D Losses with Smart Grid Solutions

India’s existing transmission capacities remain inadequate, leading to significant energy losses due to inter-state transmission congestion. Millions of kilowatt-hours of electricity are lost, making solar power generation a less viable proposition. While efforts are underway to upgrade substations and T&D lines, a large-scale adoption of smart grid solutions can further enhance energy efficiency, reduce losses, and provide a seamless integration of renewable energy sources.

Investing in Grid Infrastructure for Sustainable Solar Expansion

To accommodate increasing solar power generation, India must continually upgrade its grid system. A phased transition from 440 KV to 765 KV and eventually to 1,200 KV will enable effective distribution of power to energy-deficient regions. Similarly, lower-level upgrades from 66 KV to 132, 220, and 440 KV should progress simultaneously. Collaboration with smart grid manufacturers will ensure that modernized grid infrastructure supports renewable energy expansion.

Conclusion: Strengthening India’s Renewable Energy Future

For India to truly harness its solar potential, urgent investments in T&D infrastructure and smart grid technology are essential. Strengthening the power grid through cutting-edge innovations and strategic planning will not only prevent energy losses but also contribute to a more stable, sustainable, and efficient energy future. By integrating smart grids, India can ensure that every unit of solar energy generated reaches its intended destination, maximizing the benefits of renewable power generation. Hartek Group is at the forefront of this transformation, offering advanced solutions to enhance grid efficiency and reliability. Contact us today to learn how Hartek Group can help power a smarter and greener future.

FAQ’s:-

1. What is a smart grid manufacturer’s role in solar power?
A smart grid manufacturer develops advanced grid solutions to optimize solar energy transmission, reduce losses, and improve efficiency.

2. How do smart grids help in solar power integration?
Smart grids enhance grid stability, reduce transmission losses, and ensure efficient energy distribution from solar power plants.

3. Why is smart grid technology important for India’s power sector?
It modernizes transmission infrastructure, prevents power failures, and supports India’s growing renewable energy capacity.

4. What challenges does India face in solar power transmission?
India struggles with outdated T&D infrastructure, leading to transmission losses and grid instability, requiring smart grid upgrades.

5. How can smart grid manufacturers improve energy efficiency?
By integrating real-time monitoring, automation, and AI-based energy management systems to optimize power flow and reduce waste.