1. SOLAR INDUSTRY-THE NEXT
MULTIBAGGER
India is the country where there is tremendous potential for solar energy but
on the same side there is demand supply gap of nearly 13% of total demand
of the energy. People are heavily dependent on electricity, almost
24x7x365. Generation of electricity is heavily dependent on non-renewable
sources of energy like coal.
Renewable Energy
Source
Diverse Applications
Technology Development
Low Maintenance Costs
Swaroop Pandao
swarooppandao@gmail.com

2. Solar Industry 07th
May, 2016
Introduction
India is the country where there is tremendous potential for solar energy but on the same side there is
demand supply gap of nearly 13% of total demand of the energy. People are heavily dependent on
electricity, almost 24x7x365. Generation of electricity is heavily dependent on non-renewable sources of
energy like coal. Data shows that the contribution of renewable sources of energy in India is nearly 7.7%
of the total installed power capacity of 1,68,098 MW in India. Among the renewable sources wind energy
is dominating the game while the contribution of the solar energy is less than 0.15% of the total installed
capacity. Looking at the position of India which is located near the equator, the solar potential of India is
immense. India nearly receives 3500 hours of sunshine every year which is more than enough to generate
fair amount of solar energy which can be utilizes in different ways.
Government Initiatives to Road-map and Develop the Solar Industry
After recognizing the solar potential of India, the Government is more focused on encouraging the growth
of the solar industry. Considering the recent progress, Solar Industry can grow exponentially in coming
years. In India few bodies are established to encourage and promote the solar industry in India. The
bodies are the Ministry of New and Renewable Energy (MNRE), the Renewable Energy Development
Agency (IREDA) and the Solar Energy Centre (SEC). Apart from this, the Government has eased number
of policies and subsidies to promote and encourage the use of solar energy. In India, the National Solar
Mission is focused on increasing the use of the solar thermal technologies in urban areas, industry and
commercial establishments.
Growth Potential Factors of Solar Energy
Growth potential factors can be divided in to two categories- Demand side and Supply side. Let us dive
more dipper in to these factors:
Demand Side
As we know, India is suffering with demand supply gap of nearly 13% of total power supply. Taking
about the energy consumption, it tends to be on the higher side as compared to generation. The increasing
use of electricity pressurizing the coal producers in India. The use of solar energy can gap down the
difference between demand and supply ratio.
Supply Side
Main reason behind forcing the Government to look for renewable sources is high production of non-
renewable sources like coal and diesel. The easing in the policies and the positive environment created
by the Government through various subsidy schemes is actively making the market and encouraging
power generation companies to invest more in solar industry. Investment towards the solar industry is
one time and the fruits can be enjoyed life time. In rural areas, the Government is actively installing the
solar panels where people are able to use electricity in cheaper rates.
Challenges in Solar Industry
The main challenge for solar industry is high cost of solar power generation. Similarly solar panels are
expensive as well. The reason behind the high cost of solar panels is the dependency on imports for
silicon and solar wafers used for the manufacture of solar cells. Nearly 75-80% of the material is imported.
Lack of effective financing infrastructure could be one more reason behind the impending growth of the
industry.
Equally the Research and Development in the solar industry is considerably slow due to lack of sufficient
financing for the department. Lack of technological innovation which can support the production of solar
energy can add to the challenges.

3. Solar Industry 07th
May, 2016
In order to overcome these challenges, the Government has to take better initiatives to promote R&D
with significant pace to encourage the growth of the industry. Increasing the consumer awareness could
be able to change the scene shortly. Instead of approaching with big policies, the Government should
enter the market with small but easily understandable schemes for the consumers, especially the rural
consumers. The Government should be able to come up with some cheaper as well as highly effective
schemes and policies to encourage the use of solar energy among the consumers. Even considering the
current progress status, solar industry could be multibagger in coming years.
Solar Energy have greatest potential to fill India's energy demand supply gap in the coming future. It is
equally important to overcome the challenges faster to keep the industry growth with significant rate.
The Research and Development has been diving with better pace to minimize the challenges and the
government is taking better initiatives to encourage and promote the use of the solar energy. The Solar
industry will take some time to build in but surely will grow with exponential rate.