Cost of solar energy per kwh in india
The cost of solar energy per kWh in India is relatively low, making it an affordable and sustainable renewable energy option for the country.
The Cost of Solar Energy per kWh in India
In recent years, India has emerged as a global leader in renewable energy, particularly in the solar sector. The country has set ambitious targets to increase its solar capacity and reduce its carbon footprint. As a result, the cost of solar energy per kilowatt-hour (kWh) in India has been on a downward trajectory, making it increasingly competitive with conventional sources of electricity.
One of the key drivers of the declining cost of solar energy in India is the government's commitment to promoting solar power. The central government, along with several state governments, has implemented a range of policies and incentives to encourage the adoption of solar energy. These include financial incentives such as capital subsidies, tax benefits, and low-interest loans for solar projects.
The government has also introduced a mechanism called Solar Power Purchase Agreements (PPAs), whereby solar developers sign long-term power purchase contracts with utilities at predetermined rates. These PPAs provide a stable and predictable revenue stream for solar projects, which helps attract investment and lowers the cost of capital. Additionally, several states in India have adopted net metering, a billing arrangement that allows solar energy producers to sell excess electricity generated by their systems back to the grid, reducing their electricity bills further.
Furthermore, technological advancements and economies of scale have played a crucial role in reducing the cost of solar energy. The manufacturing costs of solar panels have decreased significantly over the years due to the mass production of photovoltaic cells and improved manufacturing processes. This, coupled with the increasing efficiency of solar panels, has helped drive down the cost per watt of solar energy.
According to a report by the International Renewable Energy Agency (IREA), India's solar power tariffs hit a record low of ₹1.99 ($0.027) per kWh during an auction in July 2020. This is a significant decline from the average tariff range of ₹7-8 ($0.095-$0.108) per kWh in 2010. The report also predicts that by 2030, the cost of solar electricity in India could reach ₹1.9-2.6 ($0.026-$0.035) per kWh, making it one of the cheapest sources of electricity in the country.
The decreasing cost of solar energy in India has made it an attractive option for both large-scale utility projects and smaller residential installations. Many multinational companies, as well as domestic players, have invested heavily in solar projects across the country. The government's target to achieve 175 GW of installed renewable energy capacity by 2022, with 100 GW coming from solar power, has helped create a favorable investment climate and has attracted global interest.
Investments in solar manufacturing facilities have also contributed to cost reduction. The Indian government has implemented a Production-Linked Incentive (PLI) scheme to boost domestic solar manufacturing capacity. Under this scheme, manufacturers receive financial incentives for increasing the production of solar photovoltaic cells and modules. The increased availability of locally manufactured solar panels has further lowered the cost per kWh of solar energy in India.
It is important to note that the cost of solar energy can vary depending on various factors such as location, project scale, and technology used. The aforementioned costs are indicative of the broader trend of declining solar tariffs in India but do not necessarily reflect the costs of all solar projects in the country.
In conclusion, the cost of solar energy per kWh in India has seen a remarkable decline in recent years, thanks to favorable government policies, technological advancements, and economies of scale. The government's commitment to renewable energy, coupled with the increasing interest and investments from domestic and international players, has helped drive down the cost of solar power. As solar energy becomes increasingly affordable, it holds tremendous potential to transform India's energy landscape and reduce its reliance on fossil fuels.