The future of solar

Posted on April 5, 2011 by

It is widely belived by experts that the solar PV market across the globe and in India will continue to grow for the foreseeable future. The global PV market is projected to be 2.5 times its current size by 2014, based on a slowest growth scenario. A fast growth scenario could see the industry size reaching $100 billion by 2014.

The Indian Solar PV manufacturing sector as of now is export-led. The sector is much larger than the country’s total installed capacity. The overall manufacturing capacity of solar PV modules is further expected to grow at a rate of 20 to 25 percent up to 2015 from about 1000 MWp as of 2009, a report by Frost & Sullivan states.

The JNNSM’s target to install 20 GW of solar power by 2022 (consisting of 50% under solar PV), and the plan to produce modules and cells domestically will demand a significant increase in the module production capacity. It is only only the central government, but the states are also devising their own and ambitious policies for solar PV power generation. Among these, Gujarat is the most prominent.

There is clearly a huge manufacturing opportunity fueled by the the export market and the JNNSM and state policy driven domestic market. There is also huge and untapped off-grid potential, especially in the areas such as rural electrification, power irrigation pump sets, back-up power generation for the expanding network of cellular towers across the country, captive power generation, urban applications and highway lighting etc.

Feed-in-tariffs and Generation Based Incentives (GBIs) under the JNNSM is one class of initiatives by the Government. Incentives under the other mechanisms such as the semiconductor policy are expected to make the long-term industry prospects much brighter.

Source : A recent report “Not Just Power An Analysis of Diverse Opportunities in the Solar PV Value Chain” by EAI

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