The demand for alternate sources of energy like solar has surged worldwide due to global warming and shortage of conventional sources. Solar energy accounts for less than a fraction of the total renewable energy installed capacity in India. In the current scenario, solar energy is less affordable as per unit cost of solar energy is 4X-5X other conventional and non-conventional sources. However, due to tropical location and the government initiatives, India has the potential to become a solar hub. Government has introduced various reforms and incentives to encourage domestic and multi-national companies to set up plants in India. The report provides a snapshot of the solar power market in India, including the installed capacity, growth and value chain analysis. Both, solar photovoltaic and solar thermal methods are covered in the report. The report highlights the key trends and drivers in the solar power market and provides a brief analysis of the major issues/challenges hindering the growth of the market. Competitive landscape identifies the key players and highlights the investments proposed by each in solar energy.

1. Solar Energy - India
February 2009

2. Executive Summary
Solar energy market in India is worth USD XX mn
Market Accounts for less than x% of total installed renewable energy capacity
Government plans to increase the share of renewable energy to y% by 2032
Solar energy is harnessed through either of two methods:
– Solar Thermal Plant/Concentrated Solar Power Plant
LE
– Solar Photovoltaic (SPV)
P
Drivers: Positive government policies, entry of new players in polysilicon market, abundant solar
Drivers & radiation in India, export demand for solar equipment
Challenges
SA
material imports
M
Challenges: High unit cost of solar energy, volatility in polysilicon prices, and dependence on raw
Increase in M&A activity in renewable energy sector
Trends Domestic and international players are moving in solar energy space
Public and private investments have increased in solar energy market
Major players include Company AA, BB CC etc
Competition New players entering the solar space include company DD
Companies have increased their investments in solar technology and products
SOLAR ENERGY – INDIA.PPT 2

3. •Introduction
•Market Overview
•Drivers & Challenges
•Trends
•Government Initiatives
•Competition
•Key Developments
SOLAR ENERGY – INDIA.PPT 3

4. Renewable energy sources are gaining share in the total power
capacity in India
Overview Power Sector Break-up
• Principal renewable sources of energy are: 100 a% b% c% Renewable
Wind Energy
80
Small Hydro upto 25 MW
Biogas 60
x% y%
LE
Solar Energy z% Conventional
40
• Renewable energy capacity reached ZZ MW, accounting
P
20
for x% of the total installed power capacity in India
• Renewable energy witnessed the growth of x% in 0
2007
S M
installed capacity from AA MW in 2002 to BB MW in
A
• The Ministry of New and Renewable Energy (MNRE)
plans to take the total renewable energy capacity to
2002 2007
Thermal
x%
2008*
more than X MW during 11th Five-Year Plan
• Wind energy accounts for x% of the total renewable
energy capacity u%
Nuclear z% y%
Renewable
Hydro
India plans to more than double its renewable energy capacity by 2012
India plans to more than double its renewable energy capacity by 2012
* As of Feb, 20--
Source:
SOLAR ENERGY – INDIA.PPT 4

5. Solar energy is at a nascent stage in India and the Solar
Photovoltaic method of power generation is dominant
Overview Capacity and Growth
•Solar energy market is worth USD XX mn Sources / Systems Estimated Cumulative
potential Achievement*
Solar energy accounts for a fraction (less than x%) of
the total renewable energy installed capacity in India Distributed Renewable Power
Solar power - XY MW
•India has long term goal of generating x% of the
LE
country’s electricity from renewable sources by Decentralized Energy Systems
P
2032 SPV Program ZZ MW/ Sq.Km
•Solar energy can be harnessed through two Solar Street Lighting - AA nos.
methods –
SAM
Solar Photovoltaic (SPV) - converts light
directly into electricity
Home Lighting System
Solar Lantern
Solar Power Plants
-
-
-
BB nos.
CC nos.
DD Mwp
– E.g. Standalone Power Plant Solar Photovoltaic Pumps - EE nos.
– MNRE has funded xx grid interactive SPV power Solar Thermal Program -
plants with total capacity of yy MW Solar Water Heating Y million Sq. m X million Sq. m
Solar Thermal/Concentrated Solar Power System collector area collector area
(CSP) - converts light first into heat and then Solar Cooker - A mn
electricity • Distributed Renewable Power – Grid interactive
– Examples Water Heating, Solar Ponds, Solar • Decentralized Energy Systems – Off-Grid
Cooker, Solar Air Heating
* As of October 31, 20--
Source:
SOLAR ENERGY – INDIA.PPT 5

6. Drivers and Challenges
Challenges
Drivers Solar Power Unaffordable due to high
costs
Tropical Location High dependence on raw material
import
Government initiatives
Volatility in polysilicon prices
New players entering polysilicon
market Land scarcity
Major export demand
Minimal fuel and environmental risks
SOLAR ENERGY – INDIA.PPT 6

7. Key Trends
Increase in M&A activity
Trends
New players entering solar Increase in public and private
energy market investments
SOLAR ENERGY – INDIA.PPT 7

8. Government is providing various direct and indirect incentives to
encourage investment in solar energy..
• Financial assistance amounting upto INR -- per KW hour in case of solar PV with
Direct Initiatives maximum capacity of X MW and upto INR -- per KW in case of thermal Power plant for a
period of x years
• Indian Renewable Energy Development Agency (IREDA) provides revolving fund to
financing and leasing companies offering credit for the purchase of PV systems
PLE
• Direct Investment of up to x% is permitted in non-conventional energy sector through
the automatic route
Indirect Initiatives
SAM
• In March 20-- the Indian government announced a semiconductor policy under its
Special Incentive Package Scheme (SIPS)
Type of Unit Threshold NPV of Incentives in SEZ Incentives in Non - SEZ
investment
Fabrication* USD – bn x% a% + Exemption from CVD
Eco-System USD – bn y% b% + Exemption from CVD
Source:
SOLAR ENERGY – INDIA.PPT 8

9. Thank you for the attention
The Solar Energy report is a part of Research on India’s Power Industry Series.
For more detailed information or customized research requirements please contact:
Gagan Uppal Gaurav Kumar
Phone: +91 22 4098 7530 Phone: +91 33 4064 6214
E-Mail: gagan.uppal@netscribes.com E-Mail: gaurav.kumar@netscribes.com
Research on India is a product of Netscribes (India) Pvt. Ltd. Research on India is dedicated to disseminating information and providing quick
insights on “hot” industries in India and other emerging markets. Track our new releases and major updates in these industries on
About Netscribes
Netscribes is a knowledge-consulting and solutions firm with clientele across the globe. The company’s expertise spans areas of investment &
business research, business & corporate intelligence, content-management services, and knowledge-software services. At its core lies a true
value proposition that draws upon a vast knowledge base. Netscribes is a one-stop shop designed to fulfil clients’ profitability and growth
objectives.
Disclaimer: This report is published for general information only. Although high standards have been used the preparation, Research on India,
Netscribes (India) Pvt. Ltd. or “Netscribes” is not responsible for any loss or damage arising from use of this document. This document is the
sole property of Netscribes (India) Pvt. Ltd. and prior permission is required for guidelines on reproduction.
SOLAR ENERGY – INDIA.PPT 9