With an increasing requirement for alternative sources of energy, solar energy is being seen as an eco-friendly and affordable option. With 300 days of clear sun, India is suited to harvest solar energy optimally. Solar energy can be used to operate appliances like water heaters and solar cookers without electricity. It can also be used to generate power for systems of irrigation and distribution of drinking water.

Two technologies are used to generate solar energy; solar thermal and solar photovoltaic. Solar thermal technology directly harnesses solar energy to produce power. This power can be used for heating or cooling air or water, cooking, drying of agricultural products, and distilling and purifying water. Solar photovoltaic technology converts sunlight into electricity. This electricity can be used to run basic home appliances, solar power plants for villages, telecommunication systems, and railway signals.

Most parts of India do not have an electrical grid.  The country is dependent of coal and fossil fuels for most of its energy needs. Hence, solar energy installations would save on power generation from diesel or fossil fuels. India has a solar potential of 5,000 trillion Killowatt-hours per year. However, only .1% of it is being used as per the data shared by India’s Ministry of New and Renewable Energy. Other challenges for this sector are land scarcity and slow progress. Land being a scarce resource in India, has low availability for installation of solar plants. Also, the initial cost of deployment of solar energy is also very high. Thus, to harness full potential of solar energy, the initial costs of deployment need to be cheaper. Low installation will attract individuals and family size household consumers to harness solar energy as well. India also needs to progress in solar photovoltaic technology where it is ranked behind nations such as Japan, China and the USA.
Indian government plans to harness solar energy and reduce the price of electricity and fuel by 2030. A budget of USD 20 billion is currently allocated for the development of the solar energy sector.  Also, funds have been provided by the Australian government to energy engineers of India and China. India ranks 7th in Solar Photovoltaic technology and 9th in solar thermal technology. With the entry of private sector companies, the solar energy sector is estimated to grow by 25% in the coming years. This is good news for companies planning to venture into solar energy sector.

Novonous Insights is a report that provides important solar sector insights, growth prospects, challenges, forecasts and key trends of the sector. Companies planning to venture into this sector can use this report to facilitate decision-making based on accurate forecast data, and in-depth information of Solar Energy sector. The trends mentioned in the report can be used to plan and develop various implementation strategies. Companies can also identify various investment opportunities using the SWOT analysis of the solar energy sector. The report lists the key challenged for new companies in this sector and profiles of the existing key players.