Today, more and more companies in India as well as globally, irrespective of their size, are embracing the transition to solar energy than ever before. ‘Going green’ and reducing their carbon footprint are the key reasons for this all-important shift.
Let us take a look at some of the other factors contributing to this trend in our country.
Long-term planning leading to greater ROI
The cost of installation of solar projects has gone down considerably in recent years. In the long run, companies are definitely able to enjoy a decrease of 40-70% on their electricity bill. The life of a well-maintained solar power system is about 25–30 years. The average time for the investment to pay off is 3 to 4 years, after which business owners can easily avail free electricity.
Organisations are tapping into the full potential of solar power by employing the services of professional and experienced solar EPC companies that possess the right technology and skills required to position, install and maintain optimal performance and also have the technological bandwidth to offer facilities like utilising solar automation software.
Cutting fuel dependency
With non-renewable resources such as coal and oil being limited in supply, the price of traditional power is likely to keep rising, especially in a growing economy like India. On the other hand, there has been substantial growth, and reduced costs, in the solar sector over the last decade. Not to forget, leveraging such renewable sources of energy has the benefit of increasing sustainability for any business.
Role of the government
The government, especially through bodies like the Ministry of New and Renewable Energy (MNRE) and subsequently the Solar Energy Corporation of India (SECI), has played a pivotal role in helping Indian businesses become one of the fastest adopters of solar power. The subsidies and incentives provided by the Jawaharlal Nehru National Solar Mission (JNNSM) since 2010 have provided a positive influence in this key aspect. Some of the key tax incentives that have contributed to the growth are the Accelerated Depreciation Benefit and Tax Holiday, announced under 80-1A in the initial years between 2010 and 2015, which have provided a major relief to solar developers by offering necessary tax breaks. (1)
Easy availability of land
In 2016, the MNRE Solar Park Policy introduced guidelines that facilitated state governments to identify suitable large tracts of land with appropriate insolation levels, as well as prioritise the use of government waste/non-agricultural land in order to speed up the acquisition process for setting up solar parks. One of the probable reasons of the record low tariff of INR. 2.44 was that the risk and uncertainty associated with land acquisition was completely erased from the project cost of large-scale solar projects. (2)
Favourable climatic conditions (there are almost 300 sunny days a year across the country) and the easy availability of land have prompted many companies to adopt solar energy.
Low cost of labour
India has the lowest cost of labour, thereby allowing solar EPC companies to employ large number of people resulting in speedy project completion at the lowest cost. The solar industry has utilised the availability of affordable labour to not only offer lowest cost of power to consumers but also create ample opportunities for employment in the process.
Leading the way
Big companies have woken up to the fact that now is the right time to adopt the drive for long-term behavioural changes and energy efficiency, supported by advanced and innovative technology. Investing in solar projects not only harnesses the power of the sun effectively but also re-energizes the renewable-energy production business.
As a brand that evokes trust, reliability and enormous experience in the sector, Nimbus Solar Solutions has played a major role in the Solar Revolution in the country. Today, the Group generously contributes to our flagging economy by guiding companies into taking the right decisions when it concerns their solar power needs.
For more details, visit www.nimbussolar.in
1. Map Solar Group. [Online]. Available at: http://mapsolargroup.com/cheapest-producer-of-solar-power-india-4/
2. Economic Times. [Online]. Available at:https://economictimes.indiatimes.com/small-biz/productline/power-generation/how-india-in-a-short-period-of-time-has-become-the-cheapest-producer-of-solar-power/articleshow/70325301.cms?from=mdr