Technological advancements and progressive policies are revolutionizing the Indian solar industry

With the fourth largest installed capacity in the world and an estimated potential of 7,48,990 MW, solar power is a promising sustainable energy option in India. The industry has seen massive disruptions in its evolution, from solar panels decorated with nanowires to windows that convert light into electricity. However, optimizing the efficiency of solar panels was a significant challenge because in early photovoltaic cells only a small fraction of sunlight is converted into usable energy. To address these challenges, government and industry players are eager to leverage innovative technologies responsible for the increased efficiency of solar panels and grids.

Production and technological capabilities

The domestic solar manufacturing industry plays a key role in India’s infrastructure development, contributing to supply chain resilience, local manufacturing and job creation. Domestic solar PV is critical to achieving renewable energy and net zero emissions goals.

Scientific research suggests that a power conversion efficiency (PCE) of 20.6% is crucial in solar cell applications. However, India’s limited solar cell capacity of 5.8 GW, mainly due to dependence on imported cells, highlights the challenge of self-sufficiency in solar power production. Technological advances in solar energy include higher efficiency commercial solar panels, the phase-out of polycrystalline panels, and the rise of bifacial solar panels.

Advances in solar trackers and energy storage systems are also improving efficiency. Despite the dominance of PERC technology in the solar panel market, there is a shift towards advanced technologies such as TOPCon and HJT. In addition, new ideas such as solar paints, organic photovoltaics and quantum dot solar cells offer potential for efficiency and cost reduction. Combining solar energy with nanotechnology and biology also creates new opportunities for innovation.

These changes are key to renewable energy and net zero emissions goals, contributing to supply chain resilience, local production and employment.

Challenges facing industry players

Indian solar producers face a number of challenges and still rely heavily on Chinese raw material suppliers. Other challenges remain the high investment required to produce solar modules and the rapid changes in solar panel technology that are making older technologies obsolete and investors hesitant to switch from polycrystalline to mono PERC and TOPCon. On the other hand, overcoming challenges related to supply chain dependence, financing costs and compatibility of new technology with older machinery is crucial to the further development of domestic solar production.

Government policy opening up opportunities

With ambitious targets and policies such as the Production Linked Incentive (PLI) Scheme, India aims to achieve 500 GW of renewable energy capacity by 2030. The Government of India has introduced comprehensive policies and initiatives to boost domestic production and strengthen its position as a powerhouse solar.

The Indian government’s Solar Park Scheme goal is to establish 50 solar parks with a capacity of 500 MW or more and a total capacity of ~38 GW by 2025–2026, attracting investment and creating an environment conducive to the development of solar energy. Programs like PM-KUSUM are transforming the Indian agricultural sector by setting up decentralized solar power plants, replacing agricultural diesel pumps with solar agricultural water pumps, and solarizing existing grid-connected agricultural pumps.

Moreover, rooftop solar and off-grid solar programs provide subsidies for solar energy availability, making them strategic investments in a solar-powered future. And finally, the PLI program which signals a huge boost for domestic production, increases production capacity and makes India a solar powerhouse.

The way forward

Solar energy technology is a testament to humanity’s relentless pursuit of creativity and invention, bringing us closer to a future powered by renewable resources. In the Union Budget 2023-24, INR 7,327 crore has been allocated for the solar sector, an increase of 48% over the previous year. The solar power sector in the country has an estimated potential of 7,48,990 MW and can play a key role in economic development and energy transformation. Prime Minister Narendra Modi stated in 2020 that solar energy will be the main source of energy demand in the 21st century because it is reliable, clean and safe.

By

Gautam Mohanka, CEO of Gautam Solar