PROJECT REPORT ON

SOLAR ENERGY

SUBMITTED BY

AASTHA GALANI

AU1910330

MGT 508: SUSTAINIBILTY, BUSINESS AND

SOCIETY

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ACKNOWLEDMENT:

I would like to thank Professor Siddhartha Saxena and Professor Samir for giving me this

opportunity to work on a research report on ‘Solar Energy’. I would also like to thank TA

Aneri Padhiyar for being helpful throughout the project.

This report will help me gain more exposure in the solar energy field through my own

research work. Through this report I hope to explore the new inventions in the solar energy

sector as well as track the notable progress made in this particular sector. It will also help me

gain knowledge regarding the current situation of this sector in the country.

ABSTRACT:

This report focuses on the developments incurred in the solar energy sector including the

current situation of the solar energy sector, major new technological advancements,

initiatives taken by the government to promote solar energy as well as progress and

improvements implemented for the same. The report also highlights the economic,

environmental, storage and technological challenges faced in the solar sector. The solar

energy sector has gained tremendous momentum in the last few years due to the increasing

demand for renewable resources. Finally, the report covers all the key transformations taking

place in the renewable energy sector focusing on solar energy.

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 Contents
1. INTRODUCTION 4

2. MARKET OVERVIEW 5

2.1 MARKET SIZE 5

3. RENEWABLE ENERGY SECTOR 6

3.1 RENEWABLE ENERGY IN INDIA 7

4. INVESTMENTS AND DEVELOPMENTS 8

5. GOVERNMENT INITIATIVES 9

6. FACTORS CONSTRAINING GROWTH 11

7. IMPACT ON SUSTAINABILITY 13

8. CONCLUSION 15

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 1. INTRODUCTION:

Due to its many advantages, solar energy has grown in popularity in recent years. It is a

renewable and sustainable energy source. It is a type of energy that is obtained from the sun

by using solar thermal collectors or photovoltaic panels. These systems' energy output can be

utilized for many things, such as producing electricity, heating homes, and cooling them.

With the energy business experiencing a major shift, digitalization may be the key to

increasing production, efficiency, and flexibility. We're moving away from a centralized

power generation system and toward a system of various distributed generators. The solar

business, like most others, is quickly adopting new techniques to analyze and crunch data to

cut the cost of solar energy and expand the market for its products. The demand for electricity

in India has increased exponentially and is expected to grow further, to meet this demand the

installed capacity needs to be increased massively. Recent technological advancements have

significantly lowered the cost of solar panels and solar equipment, making solar energy more

and more accessible. As a result, solar energy has improved as a home and commercial

energy source, resulting in a rise in acceptance and investment in the solar energy market.

Climate change-causing emissions, pollutants, or greenhouse gases are not produced by solar

energy. So, compared to conventional energy sources, solar energy is clean and

environmentally friendly. The abundance of solar energy is one of its main benefits. We have

access to the sun every day as a free, limitless source of energy. In contrast to fossil fuels,

which are limited and will ultimately run out, solar energy provides a long-term, dependable

source of power.

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 2. Market overview:

The solar energy sector is a growing industry that is focused on the production and utilization

of solar energy. Solar energy is generated through the use of photovoltaic (PV) panels, which

convert sunlight into electricity. The sector includes a range of companies involved in various

aspects of solar energy, including manufacturers of PV panels, developers of solar energy

projects, providers of financing and installation services, and operators of solar power plants.

The solar energy sector has seen significant growth in recent years, driven in part by the

increasing demand for renewable energy sources and the declining cost of solar technology.

This growth has been supported by government policies and incentives that encourage the

adoption of solar energy, such as tax credits, feed-in tariffs, and renewable portfolio

standards.

The solar energy sector has also seen a shift towards new business models that enable greater

access to solar energy, such as community solar projects and solar leasing programs. These

models allow consumers to participate in the solar energy market without the need for

significant upfront investment.

Another trend in the solar energy sector is the integration of energy storage technologies,

such as batteries, into solar power systems. This enables solar energy to be stored and used

during times when sunlight is not available, providing a more reliable and flexible source of

electricity.

Overall, the solar energy sector is poised for continued growth and innovation as the world

seeks to transition to a more sustainable energy future.

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The fourth most enticing renewable energy market in the world is found in India. India

ranked fourth in installed renewable power capacity as of 2019, fifth in wind generating, and

fifth in solar energy.

The capacity for producing renewable energy has increased quickly in recent years, with a

CAGR of 17.33% from FY16 to FY20. Investor interest in the sector has increased as a result

of rising government support and stronger economic conditions. India would need to use a lot

of renewable energy if it is to achieve its projected 15,820 TWh energy consumption by

2040. The government intends to install 227 GW of renewable energy capacity by 2022,

exceeding the Paris Agreement's target of 175 GW (including 114 GW of solar capacity and

67 GW of wind generating capacity). By 2030, the government hopes to have 523 GW of

capacity for renewable energy (including 73 GW from hydro).

In recent years, the solar energy industry has expanded quickly as a result of commitments

made by nations and businesses all over the world to switch to cleaner energy sources. An

overview of the solar energy industry is given below:

Market Size: The global solar energy market, which was valued at USD 52.5 billion in 2018,

is anticipated to increase at a CAGR of 20.5% from 2019 to 2026, reaching USD 223.3

billion.

Geography Market Share: With more than 60% of the world's solar energy capacity, Asia

Pacific is the solar energy industry's largest market. The two biggest markets for solar energy

in the area are China and India. After North America, Europe is the second-largest market for

solar energy.

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Photovoltaic (PV) and concentrated solar power (CSP) are the two main sources of solar

energy (CSP). Although CSP systems employ mirrors or lenses to focus sunlight onto a tiny

area, where it heats a fluid to produce steam that turns a turbine to generate power, PV

systems convert sunlight directly into electricity.

Market Trends: The solar energy sector has seen several trends in recent years, including:

1. Falling Costs: The cost of solar panels has declined significantly over the past decade,

making solar energy increasingly competitive with traditional sources of energy.

2. Storage Technologies: Advances in energy storage technologies have made it possible

to store solar energy during the day for use at night or on cloudy days, increasing the

reliability of solar energy.

3. Distributed Generation: The rise of distributed generation, where electricity is

generated locally and fed into the grid, has created opportunities for small-scale solar

energy projects.

4. Corporate Commitments: Many corporations have committed to transitioning to

renewable energy sources, driving demand for solar energy.

5. Government Support: Governments around the world have implemented policies and

incentives to encourage the adoption of solar energy, including tax credits, subsidies,

and renewable portfolio standards.

Overall, the solar energy sector is poised for continued growth in the coming years as

countries and companies around the world seek to transition to cleaner sources of energy.

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 2.1 Market Size

Installed renewable energy capacity was 94.43 GW in February 2021. Wind power projects

totaling 15,100 megawatts (MW) were issued by December 2019, with 12,162.50 MW of

capacity already awarded2. In FY20, India generated 127.01 billion units (BU) of electricity

from renewable energy sources.

Northern India is expected to become India's renewable energy powerhouse, with a potential

capacity of 363 GW and policies focusing on the renewable energy industry.

3.Renewable Sector (Solar Energy)

Within the previous five years, solar power capacity has expanded by more than 5 times,

from 6.7 GW to 40 GW in March 2021. The Indian government also wants to increase overall

renewable energy capacity to 450 GW by 2030.

Up till March 2019, 42 solar parks with a total capacity of 23,499 MW had been approved in

17 states.

Solar parks at Pavagada (2 GW), Kurnool (1 GW), and Bhadla-II (648 MW) are among the

country's top five operational solar parks with a total capacity of seven GW.

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Gujarat is now constructing the world's largest renewable energy park, a 30 GW solar-wind

hybrid project.

3.1Renewable energy scenario in India

The Indian renewable energy industry is the world's fourth most appealing

renewable energy market1. As of 2019, India was rated fifth in wind generation,

fifth in solar energy, and fourth in installed renewable power capacity.

Renewable power generating capacity has grown at a rapid pace in recent years, with a

CAGR of 17.33% from FY16 to FY20. The arena has grown more appealing to investors as

a result of increasing government assistance and improved economics. Renewable energy is

set to play a critical role as India attempts to meet its own energy demand, which is expected

to reach 15,820 TWh by 2040. By 2022, the government plans to install 227 GW of

renewable energy capacity (including 114 GW of solar capacity and 67 GW of wind

production capacity), surpassing the Paris Agreement's objective of 175 GW. The

government intends to determine 523 GW of renewable energy capacity (including 73 GW

from Hydro) by 2030

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Renewable energy sources have a combined installed capacity of 95+ GW.

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4.Investments/ Developments

According to data provided by the Department of Industrial Promotion and Internal Trade,

FDI investment into India's non-conventional energy business was $9.83 billion between

April 2000 and December 2020. (DPIIT). In India's renewable energy sector, more than US$

42 billion has been invested since 2014. New renewable energy investments in the nation

totaled $11.1 billion in 2018. British Business Intelligence claims that India ranks third

globally in terms of plans and investments for renewable energy in 2020.

Important investments and developments in India's renewable energy sector include the ones

listed below:

• In April 2021, GE Power India approved the purchase of a 50% stake in NTPC GE Power

Services Pvt. Ltd. for Rs 7.2 crore (US$ 0.96 million).

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• In March 2021, Adani Green Energy began making plans to purchase a 250 MW solar

energy facility in Rajasthan's northern state.

• Tata Cleantech Capital Limited (TCCL) and JICA (Japan International Cooperation

Agency) signed a JPY 10 billion (US$ 90.31 million) loan agreement in March 2021 to allow

the company to lend money to Indian businesses for renewable energy production, e-mobility

solutions, and energy conservation in an effort to lessen greenhouse gas (GHG) emissions

and counteract the effects of climate change (in line with the Green Loan Principles).

• Thanks to the COVID-19 programme, India added 2,320 MW of solar capacity between

January and September 2020.

• The Solar Energy Corporation of India (SECI) held extensive central solar park auctions,

giving contracts for 47 parks totaling more than 25 GW in capacity.

• Adani Group aims to become the largest solar energy company in the world by 2025 and the

largest renewable energy company in the world by 2030.

•From April to December 2019, private businesses spent more than Rs 36,729.49 crore (US$

5.26 billion) on renewable energy.

5. Government initiatives

The following are some government initiatives in India aimed at promoting the country's

renewable energy industry:

• the India Renewables Dashboard was created by the Central Electricity Authority (CEA)

and CEEW's Centre for Energy Finance (CEEW-CEF) jointly released In April 2021 offering

full operational data on renewable energy (RE) projects in India.

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• In April 2021, the Ministry of Power (MoP) published the draught National Electricity

Policy (NEP) 2021 and requested feedback from all parties, including Central Public Sector

Undertakings, the Solar Power Corporation of India, power transmission firms, financial

organisations like the Reserve Bank of India, the Indian Renewable Energy Development

Agency, HDFC Bank, and ICICI Bank, as well as industry, solar, and wind associations, and

state governments. • In March 2021, Haryana released the draught NEP 2021. When installed

by certain firms, solar systems with capacities between 4 and 10 kW would receive a 20%

subsidy.

• India started Gram Ujala in March 2021, an ambitious programme to install the cheapest

LED lights in the world in rural areas for Rs. 10 (US$ 0.14) each, promoting its global

climate change policy and highlighting its self-reliance credentials.

• The Government of India has announced plans to launch a US$ 238 million National

Mission on advanced ultra-supercritical technologies for cleaner coal usage.

• 30 GW of renewable energy capacity is being targeted in the deserts of Gujarat and

Rajasthan on its western border.

6.Factors Constraining Growth:

Despite the rapid growth of the solar industry, there are several factors that could constrain its

growth in the future. One of the main challenges facing the industry is the intermittency of

solar power, as solar panels only generate electricity during periods of sunlight. This has led

to a need for energy storage solutions, such as batteries, to store solar energy for use during

periods of low sunlight.

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Another challenge facing the industry is the high upfront costs of installing solar panels.

While the cost of solar panels has fallen significantly in recent years, it still represents a

significant investment for many consumers and businesses.

7.IMPACT ON SUSTAINABILITY

The impact of the solar industry on sustainability is significant. Solar energy is a clean,

renewable source of energy that produces no greenhouse gas emissions or other harmful

pollutants. By reducing dependence on fossil fuels, solar energy helps to mitigate climate

change, improve air quality, and promote sustainable development.

Solar energy also has a lower environmental impact than other sources of energy, such as

coal or natural gas. The production and installation of solar panels require fewer resources

and have lower emissions compared to traditional energy sources. Additionally, solar energy

systems have a long lifespan, typically lasting 25-30 years, which reduces the need for

frequent replacements and maintenance.

Furthermore, the adoption of solar energy can promote energy independence, reduce reliance

on imported energy, and create local job opportunities. The growth of the solar industry has

also led to advancements in energy storage technologies, which can help to address the

intermittency of solar power and further promote sustainability.

In summary, the solar industry has a positive impact on sustainability by providing clean,

renewable energy, reducing greenhouse gas emissions and other pollutants, promoting energy

independence and local job creation, and advancing energy storage technologies.

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8.Conclution

In conclusion, the solar industry has grown significantly in recent years, driven by

technological advancements, government incentives, and increasing awareness of the benefits

of renewable energy. The market size of the solar industry is expected to continue to grow in

the coming years as solar energy becomes more competitive with traditional energy sources.

India, in particular, has made significant strides in developing its renewable energy sector,

with a focus on solar energy. The government has implemented several initiatives to promote

the adoption of solar energy, including the installation of solar panels on rooftops, the

development of large-scale solar parks, and incentives for solar manufacturers.

Despite the growth and potential of the solar industry, there are still factors that constrain its

growth, including the high initial costs of solar systems, the intermittency of solar power, and

the lack of adequate infrastructure to support the growth of the solar industry.

However, the positive impact of the solar industry on sustainability is undeniable. Solar

energy provides a clean, renewable source of energy that can help to mitigate climate change,

improve air quality, promote energy independence, and create local job opportunities. As

such, the continued growth and development of the solar industry is crucial for a sustainable

future.

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