The Scope of the Solar Industry in India Compared to the United States
Title suggestions:
- A Comparison Between India and USA’s Solar Industry
- India’s Solar Industry in Contrast with the United States
Over the past few years, there has been a rapid development and increase in the adoption of renewable energies, including solar energy. It has become one of the most popular renewable energy sources in the world. In the past few years, people have adopted solar energy more than other traditional energy sources. With this increase in solar energy adoption, the global solar energy market is forecasted to reach $422 billion, compared to $86 billion in 2015.
China and the United States have two of the largest solar markets in the world, with Japan and India at third and fourth positions respectively, due to increased solar PV capacity in their countries. Talking about India, it has significantly increased its PV capacity over the past decade reaching over 50 GW by 2022, up from less than 10 MW in 2010. India’s demand for energy might make it among the top solar markets in the world. But, will India be able to surpass the USA’s solar market? Let’s discuss it below
In this article, we will present a comparison between the solar industry in India and the United States, particularly California. And how cloud computing can enhance the solar industry with its computing capabilities and storage ability.
The Current State of Solar Industry in India in Contrast to the United States
The solar industry is one the fastest growing industries in India with the country’s solar installed capacity of 59.302 GW, as of August 2022. The initial target of the Indian Government was to reach 20 GW capacity for 2022. However, they achieved this target four years ahead of their expected schedule. Talking about the availability of solar power plants, India has almost established 42 solar parks so that solar plants can be made on that land.
While most developed economies have targeted household rooftops to start their solar venture, India remains behind as it has merely focused on large-scale solar installations. However, India does intend to target residential rooftops for solar operations.
On the other hand, the US, having the largest solar industry in the world, installed 4.6 GW of solar PV capacity in the second quarter of 2022 to reach 130.9 GW of total installed capacity. While the solar energy installed in the residential area had its largest quarter in history with 1.36 GW installed, the utility-scale solar installations saw a decrease of 25% during the same quarter in 2021, given the supply chain challenges and trade disruptions.
Federal policies, including the solar Investment Tax Credit in the United States, are the reasons for decreased costs and increased demand for clean electricity across the public and private sectors. As mentioned above, almost 130.9 GW of solar capacity is installed nationwide which would be sufficient to power over 23 million houses.
The stats show a contrast between the Indian and US solar industries. The US remains on top in having the largest solar industry in the world. However, India is the fourth largest country comprising an exponentially growing solar industry.
Let’s discuss some of the challenges to the solar industry in India and the US, particularly California.
Challenges to India’s Solar Industry
While the solar industry is growing significantly in India, it does face some challenges that hinder its growth and adoption in the country. In this section, we will discuss some of the main challenges faced by India’s solar industry.
- Space Scarcity: One of the major challenges faced by India in the solar industry is the scarcity of land available per capita to install large-scale solar systems. Solving this challenge scopes for higher R&D and increased innovation in terms of installation.
- Low Tariffs: While low solar tariffs have been enforced by the Indian government, this makes some manufacturers compromise the quality of solar panels by purchasing unsustainable low-cost solar parts.
- Lack of Domestic Manufacturing of Solar Parts: The lack of infrastructure and skilled workforce, as well as the high production costs, is a significant challenge to India’s solar industry.
- Financing Mechanisms: There are fewer innovative financing options for manufacturers in India to install large-scale solar PV parks. However, few government-led initiatives have slightly resolved the issue, including the National Clean Energy and Environment Fund, Green Masala Bonds, etc.
- Lack of Solar Waste Management: India could generate 34.6k tonnes of solar waste by 2030. Since India doesn’t impose any rules on manufacturers for solar waste, managing it remains a challenge for them.
Challenges to Solar Industry in California
While solar industries in the world go through different phases, the challenges faced by the solar industry in California are different from that of India. California, being one of the pioneers in introducing rooftop solar power and building the largest market in the United States, is now facing some challenges.
One of the challenges to the solar industry in California is to deliver a demanded supply of electricity as the electricity demands increase. While California uses more renewable electricity, the supply of electricity remains a challenge for the solar industry in the state. Being a solar energy-rich state, California takes advantage of the affluent sunshine. However, with increased electricity demand due to severe heat, less hydropower production because of drought, wildfires, and supply chain challenges due to COVID-19, it becomes challenging for the solar industry in California to manage increased electricity demand.
Comparison Between India and California’s Solar Policies & Incentive Programs
While India and California benefit from solar power in their respective regions, the states have established several regulatory policies and incentive programs to ensure the effective adoption of renewable energy sources, including solar energy.
If we talk about the policies and incentive programs in India, the Ministry of New & Renewable Energy in India acts as legislation to ensure the effective usage of new and renewable energy sources and promote them. The mission of this ministry is to guarantee energy availability and access, energy affordability, and increase the share of clean power to supplement fossil-fuel-based electricity generation.
To encourage solar power generation in India, the government has launched many solar schemes, such as Solar Park Scheme, CPSU Scheme, Canal bank & Canal Top Scheme, etc. Additionally, the government of India pays a 30% subsidy to states for installing rooftop solar plants.
On the other hand, California’s Renewables Portfolio Standard (RPS) Program supports clean energy with 100% carbon-free electricity by offering laws and incentive schemes. In addition, California’s Net Energy Metering enables you to generate your own electricity using any renewable energy source and provides a financial benefit to those giving surplus electricity back to their utility.
What is the Future of the Solar Industry in India and California?
Given the increase in India’s population and economy, there are bright chances for the solar industry to flourish in the country. Even though India is one of the largest producers of electricity in the world, its electricity needs have never been met entirely. Solar Energy has emerged as the most viable option for India to cater to its electricity requirements.
In contrast to India, California has already been utilizing solar energy for quite some time now and will continue to take advantage of the abundant sunshine. However, the success of solar power installations in California is not due to the abundance of the state’s sunshine. The California Solar Initiative (CSI) has put forward many initiatives to reach a clean energy target, and this has contributed to the success of the solar industry in California. And will continue to do so.
How can Cloud Computing Revolutionize the Solar Industry in the World?
While the solar industry has seen some major technological advancements, the implementation of the cloud can transform the working of solar operations and maintenance. The solar industry can optimize its operations with scalable and flexible cloud-based data services without needing to invest in expensive computing services. It can be used for
- Infrastructure monitoring and optimizing solar panels
- Forecasting changes in supply
- Getting insights from advanced data analytics to increase consumer engagement
- Complying with energy market regulations
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