Published By : 15 Jan 2016 | Published By : QYRESEARCH
The solar energy sector in India is booming. Massive investments are being made in the solar energy market in India. These investments are being made by the government of India and other private and public firms, which include many international players. The expanding solar sector in India is projected to witness significant growth in the coming few years. Let us look at the key drivers and restraints of the solar energy market in India.
India is still experiencing a shortage of energy with a significant demand-supply gap in the total energy demand. This shortage has led to many demand and supply factors that are driving the growth of the solar energy market in India. The persistent shortage of energy in India along with the rising energy need will drive the solar energy market in India. Furthermore, favorable policies are projected to encourage investment even more in the country’s solar energy sector. This will ultimately drive down costs. In addition to this, the rising awareness of the public related to issues such as energy scarcity and protecting the environment will also fuel the demand for solar power, which is a clean energy.
Several supply-side factors will also drive the India solar energy sector. Presently, the current power generation in India depends majorly on non-renewable energy sources such as diesel and coal. These non-renewable sources are depleting fast, which has forced the government and power generating firms to explore renewable energy sources, particularly solar energy. This has led to the growing support from these entities to drive the solar power sector in the country in the form of subsidies and other encouraging policies. Moreover, the huge demand for electricity in the rural regions of the country and the abundance of solar energy in these regions will also benefit the solar energy market in India in the foreseeable future.
Nevertheless, there are several factors that are challenging the India solar energy market. This market is still at its nascent stage and the cost of solar power generation is high. This high cost is mostly due to the dependency on silicon and solar wafer imports used to make solar cells. Furthermore, R&D in this market is slow due to the lack of collaborative efforts.