India’s Renewable Energy Industry:

India, with its vast population and rapidly expanding economy, faces significant challenges when it comes to conventional energy resources. However, the country is well-positioned to harness renewable energy, particularly solar power, thanks to its abundance of sunshine throughout most of the year. Additionally, the hydropower sector presents untapped opportunities, especially in northeastern states, where efforts to explore this potential are gaining momentum. Currently, India ranks as the world’s third-largest energy consumer, with peak power demand reaching 243.27 GW as of November 30, 2023. Globally, India ranks fourth in renewable energy installed capacity, including large hydro projects, and holds the same position in wind and solar power capacity.

India has set ambitious renewable energy goals that could transform its energy landscape. At the COP26 summit, the country committed to achieving 500 GW of non-fossil fuel-based energy by 2030, with around 60% expected to come from solar power. The nation also aims to meet 50% of its energy needs from renewable sources by 2030. Another key target is to reduce total projected carbon emissions by 1 billion tonnes by 2030 and lower the carbon intensity of the economy by 45%. By 2070, India aspires to become a net-zero carbon country. Moreover, the country has set a target of achieving energy independence by 2047, with 90% of its energy sourced from renewables.

A Sector Poised for Growth:

India’s renewable energy sector, particularly solar and wind energy, already contributes over 50% of the country’s total renewable capacity. Given its size and growth potential, India’s energy demand is expected to increase more rapidly than in any other country in the coming decades. This growing demand is driven by the country’s rising population and the expansion of electrification in rural areas, which is transforming energy consumption patterns. In line with its ambitious renewable energy goals, India’s commitment to reducing carbon emissions and meeting half of its electricity needs from renewable sources by 2030 signifies a major turning point in its energy sector.

India’s renewable energy potential is estimated at 900 GW, with solar energy accounting for the majority at 750 GW. Wind power contributes 102 GW, bio-energy 25 GW, and small hydro projects 20 GW. As of February 2024, the combined installed capacity of renewable energy sources, including large hydropower, stands at 183.49 GW, with solar power at 75.57 GW, wind power at 45.15 GW, large hydro at 46.92 GW, biomass/co-generation at 10.2 GW, small hydro at 4.99 GW, and waste-to-energy at 0.58 GW.

Solar Energy Industry:

The Indian solar energy market is projected to grow at a CAGR of 19.80%, with solar PV expected to lead the market due to falling module costs. Module manufacturing capacity is expected to exceed 150 GW, with cell capacity reaching 75 GW by 2026, according to Mercom India Research.

The installed solar power capacity has increased dramatically, from 2.63 GW in March 2014 to 49.3 GW by the end of 2021, an 18-fold rise. In 2022 alone, India added 12 GW of solar capacity. Solar power generation saved the country $4.2 billion in fuel costs and reduced the use of 19.4 million tonnes of coal.

Supportive Government Policies:

• Under the Atmanirbhar Bharat initiative, the Government of India introduced a PLI scheme for solar PV manufacturing with a financial outlay of ₹24,000 crore.

• From April 1, 2022, a Basic Customs Duty of 25% was imposed on solar cells and 40% on solar PV modules.

• The Approved List of Models & Manufacturers (ALMM) for solar modules will be reimposed starting April 1, 2024.

• Solar city projects and the establishment of 59 solar parks, each with a capacity of 40 GW, aim to boost solar energy adoption.

The government is also promoting Floating PV projects.SWOT Analysis

Strengths

• Established Brand: Built a strong reputation in the solar energy industry.

• Technological Expertise: Possesses advanced technology and expertise in solar energy solutions.

• Diverse Product Range: Offers a diverse range of solar products and services catering to various customer needs.

• Strong Market Presence: Significant presence in domestic and international markets.

• Robust Supply Chain: Well-developed supply chain ensuring efficient production and distribution.

Weaknesses:

• Dependence on Government Policies: Changes in government policies related to renewable energy incentives and subsidies may affect the growth.

• Dependence on Suppliers: Operations could be impacted by disruptions in the supply chain.

Opportunities:

• Growing Demand for Renewable Energy: Increasing awareness and demand for renewable energy sources present significant opportunities to expand the market share.

• Emerging Markets: Expansion into emerging markets with favorable regulatory environments can drive growth.

• Technological Advancements: Leveraging technological innovations can enhance product offerings and efficiency, staying ahead of competitors.

• Strategic Partnerships: Collaborating with other companies or governments can open new avenues for business development and expansion.

Threats:

• Intense Competition: Competition from both established players and new entrants in the solar energy industry.

• Regulatory Changes: Changes in government regulations or policies related to solar energy could impact the company's operations and profitability.

• Supply Chain Disruptions: Disruptions in the supply chain due to natural disasters, geopolitical tensions, or other factors could impact production and distribution.