This week, Vibrant Energy secured a $268m funding to set up solar-wind power units for Amazon India in MP and Karnataka, one of the largest renewable sector deals in the country. With solar energy fast becoming a clean, green, sustainable and cheap source of energy, startups in the solar energy space are all set to grow, to help India realise its vision of 500 GW by 2030. In this post, Compliance Calendar brings to you key government initiatives and outlook for the solar business landscape in India.
Solar energy startups have a lot of scope in India, given the country's sustained and abundant sunshine - we receive about 5000 trillion kilo-watt-hours of sunlight every year. Solar startups have been growing at a rapid pace in India over the past few years, driven by factors such as favourable government policies, decreasing costs of solar technology, and increasing awareness of the benefits of solar energy.
Funding - According to Mercom India, a 400% increase in investments in the solar sector was seen between 2020 and 2021.
Clean Technology Fund : The Government of India, Solar Energy Corporation of India Limited, and World Bank signed agreements for a loan worth $150 million from IBRD, a Clean Technology Fund valued at $28 million and another $22 million in grants to expand solar power in India.
Some of the key areas where solar energy startups can make an impact in India include:
Rooftop solar installations: With the cost of solar panels falling steadily, rooftop solar installations have become increasingly popular in India, especially in urban areas where there is a shortage of Solar energy startups can offer innovative solutions for rooftop installations, such as leasing models and community solar programs.
Solar-photovoltaics : With global dependence on China reducing, the world looks at India in becoming a key manufacturer and supplier of solar photovoltaics (PV cells), that are the lifeline of the solar energy modules.
Solar-wind systems: With the distinct advantages of year-round availability (wind) and stability (solar), wind-solar projects in off-shore areas are becoming increasingly viable. In April, 2022 Vibrant Energy secured a $268m funding from Power Finance Corporation, to set up power units with 300 MW capacity for Amazon India.
Solar-powered irrigation: Agriculture is a key sector in India, and solar-powered irrigation systems can help farmers reduce their dependence on traditional sources of energy, such as polluting diesel generators. Solar energy startups can offer affordable and efficient irrigation solutions, such as solar pumps (as part of the PM- KUSUM scheme) and drip irrigation system.
Solar-powered transportation: India is the world's third-largest oil importer, and the transportation sector is a major contributor to the country's oil Solar energy startups can develop innovative solutions for solar-powered vehicles, such as electric buses and e-rickshaws.
Battery solutions: New startups are emerging in the solar space, providing ready to use battery exchanges and ‘Battery as a service’
Solar data analytics: With large solar plants, multiple user points and diffused energy needs, startups like SenseHawk are bringing AI and automation for solar plants. Using a mix of computer applications, 3D views, thermal imagery, drone inspections to detect quality issues, the efficiency of solar farms is being optimised.
Pradhan Mantri Kisan Urja Suraksha evam Utthan Mahabhiyan (PM-KUSUM) scheme: This scheme aims to promote the use of solar energy in the agriculture sector by providing financial assistance to farmers for setting up solar pumps, solarization of grid-connected agricultural pumps, and solar-powered cold storage.
Grid-connected rooftop solar scheme: This scheme provides financial assistance to residential, institutional, and social sectors for the installation of grid-connected rooftop solar systems.
Ultra & Mega Solar parks: The government has approved the development of ultra-mega solar parks in various states across the country. These solar parks provide the necessary infrastructure and support for the development of large-scale solar projects.
National Solar Mission: Launched in 2010, this is one of the most significant government schemes for promoting solar energy in India. The mission aims to achieve 100 GW of solar power capacity by 2022 and has various components such as off-grid solar applications, solar thermal power, and solar rooftop However, only 62 GW of this has been installed, as of April, 2023.
Overall, the growth of solar startups in India has been impressive, and the future looks bright for these companies, given the country's massive energy needs and the government's commitment to renewable energy. However, navigating a host of regulatory challenges, funding and compliance requirements are key to succeeding in the solar energy space in India. Connect with our business and technology experts at Compliance Calendar, to get the best legal and financial advice on your solar energy business.