• India’s need to increase energy provision for its population and fast growing economy poses a formidable challenge which is perceived as both a great opportunity as well as a necessity for the countryto increase the share of renewables in the overall energy mix.
• Solar energyis driving India towards the adoption of cleaner energy generation technologies. From less than 10 MW in 2010, India has added significant solar capacity over the past decade, achieving over 50 GW by 2022.
• Based on a commitment to address the global climate crisis, India has promised to source nearly half its energy from non-fossil fuel sources by 2030and, in the shorter term, source at least 60% of its renewable energy from solar power.
• In order to meet these targets, it is essential to look towards self-sufficiency in solar energy productionas well as its affordability and accessibility.

Challenges

• Insufficient Contribution to Power Sector:Despite significant growth in the installed solar capacity, the contribution of solar energy to the country’s power generation has not grown at the same pace.
  • In 2019-20, for instance, solar power contributed only 3.6% (50 billion units)of India’s total power generation of 1390 BU.
  • Also, while India has achieved record low tariffs for solar power generationin the utility-scale segment, this has not translated into cheaper power for end-consumers.
• High Import Dependence:India’s current solar module manufacturing capacity is limited to ~15 GW per year. Also, India has no manufacturing capacity for solar wafers and polysilicon ingots, and currently imports 100% of silicon wafers and around 80% of cells even at the current deployment levels.
  • Risk of Weaponization of Supply Chain:Silicon wafer especially, the most expensive raw material, is not manufactured in India. Since >90% of the world’s solar wafer manufacturing currently happens in China, the current geopolitical tensions between India and China could lead to the weaponization of the supply chain in future.
• Space Scarcity: Ground-mounted solar projectsrequire a lot of space to install, and land availability is low in India.
  • For a small piece of land, solar cells near substations may have to compete with other land-based necessities, resulting in conflict with local communities.
• Solar Waste:India’s solar waste has been predicted to grow by 8 million tonnes by 2050. Currently, India’s e-waste rules are not mandatory on solar cell manufacturers which leads to a large generation of solar waste every year.
• Losses in Cost and T&D (Transmission and Distribution):Solar energy is also having problems with cost competitiveness and competing with other sources of energy.
  • Thecost of T&D losses is approximately 40%, making generation through solar energy sources highly 

Looking ahead

• Extended Producer Responsibility (EPR) in Solar Sector:India could look at developing appropriate guidelines around Extended Producer Responsibility (EPR), which means holding manufacturers accountable for the entire life cycle of solar products and creating standards for waste recycling.
  • This could givedomestic manufacturers a competitive edge and go a long way in addressing waste management and supply side constraints.
• Self-reliance in Solar Energy:As part of Atmanirbhar Bharat''s vision, India must cultivate a strong domestic solar energy market. The best way to promote solar PV manufacturing is to directly support upstream startups, such as through incentives for Design and Production.
  • India can also explore the use of bio solar cells by generating electricity from microbial photosyntheticand respiration processes.
• Localised Solar Power Generation: Mini-grids and community rooftop solar installationscan facilitate the solar shift in India, while localised solar energy production and utilisation, implemented by panchayats and municipalities can be the cornerstone of the net-zero India we envision by 2070.
• Solar Diplomacy:International Solar Alliance (ISA) established by India and France at Conference of the Parties (COP-21) in 2015, can be a platform to bring countries together to facilitate collaboration on issues such as mobilising investments, capacity building, diversification of supply chain and advocacy of solar energy for global good.