How Solar Energy is Powering India’s Industrial Sector
The country’s industrial sector consumes a significant portion of fossil fuels such as coal, which until recently dominated the energy sector. However, solar and other renewables are fast emerging as vital components of fossil fuels’ energy strategies along with economic growth and government policies. As a country that predominantly relies on fossil fuels to harness energy, India is slowly making strides towards restructuring its energy framework, especially in regard to solar energy. If we are to explore how harnessing solar energy impacts India’s industry, we must first address how such growth is resulting in the empowerment of the country.That brings us to the key question posed at the beginning: How has India’s adoption of solar energy impacted industrial consumption in the country? Let’s delve deeper. Government Policies and Initiatives Keeping India’s industrial growth, in particular, the solar energy sector grows by leaps and bounds owing to the active intervention of the government and its policies and programs. National Solar Mission: India aimed to become the world leader in solar energy by installing an estimated solar capacity of 100 gigawatts by 2022 as set out in the 2010 National Solar Mission. This target had generated both international and domestic investments, thus facilitating the implementation of solar power in industries. Now, India aims to have 280 gigawatts of installed solar capacity by 2030, which is indicative of the success of the mission. Support Subsidies and Incentives: The support National Solar Mission and other subsidies, as well as tax incentives from the Indian government, have stimulated the shift of commercial enterprises to using solar energy. Paying for solar installations become easy for enterprises due to lower capital cost, thus encouraging them to transitions to using solar energy. PM KUSUM Yojana: In rural regions of India, the PM-KUSUM Yojana encourages the development of decentralized solar electricity generation. While aimed at farmers, it also infrastructure and aid for small and semi rural businesses. Subsidizing solar-powered irrigation pumps has lowered the energy use in the agriculture based rural economies. Pradhan Mantri Suryodaya Yojana seeks to promote clean energy by providing affordable solar power to industries, metropolitan areas and even the rural population. This is done through large scale solar parks and rooftop solar systems. The Pradhan Mantri Suryodaya Yojana also provides solar energy to over 3000 small and medium scale industries. Industrial solar projects receive increased capital subsidies, making the solar panel installation costs affordable for firms. These simplified financing, tax exemptions, and other program incentives have helped enterprises adopt solar power and eases large upfront costs for small and medium sized businesses. Depreciation acceleration and tax benefits: Enterprises able to harness solar energy receive generous returns on capital in the first few years due to accelerated depreciation. This eases corporate expenditures while greatly improving ROI on solar projects. Enterprises also enjoy significant benefits from solar tax holidays and low tariffs on unit imports. These Indian policies and schemes have created a positive ecosystem for the adoption of solar powered enterprises and enabled them to reduce their operational expenditures while fulfilling their national environmental obligations. Statistics on Solar Power’s Installed Capacity Today, India is expected to boast an installed capacity of around 70 GW of solar power, a far cry from the 2.6 GW reported back in 2014. This growth has come from many sectors looking for cheaper, cleaner, and more reliable sources of energy. Solar energy now accounts for almost 12% of the total electricity generation in the country. It is also worth mentioning that the industrial sectors are amongst the big users of this green energy. Rate of Adoption in the Industrial Sectors The adoption rates in the industrial sector: Major players in sectors like manufacturing, textiles, and steel have quickly shifted to solar energy because of the significant savings in costs it offers. Many of these industries now have their own solar power facilities either in the form of rooftop plants or in purpose-built solar parks. Reasons for The Shift To Solar Power Now we will talk about the reasons for the swift movement towards solar power: Higher energy costs coupled with financial pressure: Indian industries are now struggling to contain operational costs and electricity is one of the largest expenses. Solar energy becomes attractive because it can provide cheaper energy in the long-run when compared to traditional fossil fuel. Corporate And Environmental Responsibility: Climate change has gained more focus these last few decades, forcing industries to reduce their carbon footprints. Solar energy provides a way to operate more sustainably, with alignment to the environment and consumer expectations. Advances In Solar Power Technology: The efficiency and affordability of solar panels has increased significantly due to advancements in photovoltaic technology. These improvements are essential for the industry to increase energy output in a cost effective manner. Reduction In Costs For Solar Panel Installation: Commercial solar panel prices have drastically decreased by over 80% in the previous decade. This has contributed to an overall reduction in the payback period for a solar investment which makes it viable for businesses of all sizes. Considerations In Installing Industrial Solar Power Systems The above estimates take into account the various small and medium enterprises but there are myriad benefits when considering larger industrial installations. Reduction In Operational Cost: Solar panels have very low maintenance requirements post installation and can provide free energy for many years. For industries with large-scale operations, these savings can be further boosted due to decreased electricity bills. Energy Independence and Security: Industries fortify their energy security by producing their own electricity and minimizing reliance on grid and fossil fuels. This is especially significant in India where the adverse effects of load shedding and energy deficiency can terribly hinder productivity in the industrial sector. Minimizing Carbon Footprints: Transition to solar energy will aid industries in drastically lowering their greenhouse gas emissions which helps the environment as well as improve the company’s image among green consumers and investors. Long-Term ROI and Sustainability: Payback period and sustainability should be looked at from a long-term perspective. The






