Solar energy is rapidly becoming one of the most significant sources of renewable energy worldwide. With increasing concerns about global warming, environmental issues, and rising energy costs, solar energy offers a sustainable solution. In this blog, we will cover everything you need to know about starting a solar energy business in India, from setting up solar panels to government subsidies, financial gains, and the future growth prospects of the solar industry
The Fundamentals of Solar Energy
Solar energy falls under the Fundamentals of any nation’s power generation system.
Solar electricity is generated through photovoltaic systems in which energy from the sun is captured by power panels. These are solar panels which can capture the sun and convert it into electricity which can be used in different ways or sell to other utilities as sources of revenue.
1 MW Solar Plant Daily Energy Production
| Solar Plant Capacity | Daily Production (in Units) | Annual Production (in Units) |
|---|---|---|
| 1 MW | 4,000 Units | 1,460,000 Units |
| 5 MW | 20,000 Units | 7,300,000 Units |
| 10 MW | 40,000 Units | 14,600,000 Units |
Government and Private Rates for Solar Energy
| Category | Gov. Rate (₹ per Unit) | Private Rate (₹ per Unit) | Daily Earnings (₹) |
|---|---|---|---|
| 1 MW Solar Plant | 4.50 | 6.00 | ₹18,000 |
| 5 MW Solar Plant | 4.50 | 6.00 | ₹90,000 |
| 10 MW Solar Plant | 4.50 | 6.00 | ₹1,80,000 |
Stay up to date with the latest insights out on how corporations may benefit from investing in Solar Energy Business.
1)Long-Term Savings
Once the solar panels are fixed, the produce energy for several years, thereby cutting electricity costs tremendously.
2)Government Subsidies
The Indian government provides many rewards that include subsidies and tax credits in order to increase the standards of solar power usage.
3)Environmental Benefits
Solar power eliminates carbon emissions hence helping to provide a cleaner environment through the provision of power.
Some of the measures that need to be followed in order to Start a Solar Energy Business in India are the following:
1)Site Selection
Select a site that is most likely to get a lot of sunlight. The site should be uncluttered and not surrounded by structures so as to allow for the free flow of energy at the site.
2)Licensing and Permits
From local authorities, get approval through the acquisition of the relevant licenses and permits to establish a solar plant.
3)Financing
Solar plant may require huge capital to establish, especially if it is from scratch. Some of the available funding models may include; bank loans or other investors and government-based funding models.
4)Installation and Operation
Maintenance is another key factor that should be conducted to allow perfect energy yields once the system has been installed.
Earnings from Solar Panels
Most of the or produced by the solar panels can be used locally or you can feed it to the grid in exchange for some income.
This paper examines the two types of feed-in tariffs: the government tariff and the private tariff with regards to the provision of solar energy.
Government Schemes and Subsidies
The Indian government offers several schemes to promote solar energy
1)Pradhan Mantri KUSUM Yojana
Offers up to 60 percent grant to the farmers for the acquisition of solar pumps.
2)Solar Rooftop Scheme
The government has a policy to give up to 30 percent subsidy for provision of solar rooftops.
3)Private Power Sale Contracts
There are higher chances of making some good revenues since one can sign a few agreements with some of the private firms in order to purchase the electricity produced by the solar panels.
4)Should One Invest in Solar Energy Today?
Currently there is a diminishing cost of solar panels and a rising trend in subsidies hence the best time to invest in solar energy.
Growth in Solar Energy Company Share Prices
| Company | 2015 Price (₹) | 2024 Price (₹) | Growth Rate (%) |
|---|---|---|---|
| Tata Power | ₹75 | ₹350 | 366% |
| Adani Green Energy | ₹120 | ₹1,250 | 941% |
| Reliance Power | ₹50 | ₹200 | 300% |
Innovations in Solar Technology
1)Bi-facial Panels :Â Produce power from both sides producing more power.
2)Floating Solar Farms : The use of floating solar panels which reduce the land usage while harnessing energy from the sun.
3)Energy Storage Solutions : The advancements made to batteries and other methods of storage mean that the energy created by the sun can be used anytime.
Conclusion
Bright prospects are visible in the solar energy business. This is the right time to be investing in solar energy if you have plans on doing so. It will decrease the cost of the electricity bills, and apart from that, it provides monetary gain.
