solar panel

In recent times it is observed that solar panel price in India is cheaper as India is the cheapest producer of solar energy. This is not a mere coincidence but it is because of the successful partnership between the public and private agencies. The factors that led to the growth of the sector are given below-1. Role of The Government

The government in India has formed specialized bodies like the Ministry of New and Renewable Energy (MNRE) and the Solar Energy Corporation of India (SECI) which have played a major role in helping the country become the fastest adopter and the cheapest producer of solar energy. These bodies have also made efforts to promote solar energy through events and public awareness campaigns which led to a rise in the demand for solar energy in the country. The two highest solar power generators are Karnataka and Tamil Nadu followed by Uttar Pradesh and Haryana.

2. Low Cost of Labor

As the cost of labor in India is cheap, more people can be employed resulting in the speedy completion of the project at the lowest cost. A large solar plant for 500 MW can be constructed in 18 months in India.

3. Price Sensitivity

India is a very price-sensitive market. This price sensitivity helps Indian solar markets in many ways. Firstly, it causes the availability of solar components like solar panels, inverters, batteries, etc, at much competitive prices than other countries. Inverter Buying Guide can also be checked to confirm the prices of these components. Secondly, as the solar tariffs drop, more people shift to adopting solar energy which further leads to achieving economies of scale, driving even lower solar panel price in India.

4. Incentives and Policies

The subsidies and incentives launched by the government have played a major role in the adoption of solar energy in the country. All the rooftop solar projects in India attract a 30% subsidy. The government has also allowed excise and customs duty to ensure the high growth of the sector. Many people are of the opinion that the government should introduce to broaden the customer base of solar adoption in the country, mainly to sectors like MSMEs, residential, and agricultural.

5. Land

India has abundant land that can be used to set up the solar power plant. The drought-prone zones in rural India that attract high radiations of sunlight are viable to set up large solar parks. Hence, setting up such solar power generation plants also increases employment opportunities in the local area. As more people will be employed they can spend on solar energy as well.

Solar panel price in India is affordable and cheaper as well. The government wants more and more people to use solar energy so that renewable resources can be put to good use. This is the main reason why the government is giving subsidies and incentives in this sector. Also, setting up a solar plant involves a one-time investment but the money invested gives returns for around 10 to 15 years which makes each penny worth it.