Stergy Cleantech - Why Government promoting solar, by offering subsidies

The world is changing and so are our energy needs. As countries aim to move towards a more sustainable future, governments across the globe have begun implementing subsidies for renewable sources of energy- solar in particular. We all know that solar power has taken off in recent years as an alternative to fossil fuels, but what does this really mean for the growth of solar energy? In this blog post, we’ll examine 5 key reasons why government subsidies are instrumental in driving the growth of solar energy - from reducing costs to promoting investment and job creation. Let’s dive right into it.

 In the last few years, solar energy has made a noticeable difference in the Indian energy usage. Millions of people in Indian villages have benefited from solar energy-based decentralized and distributed applications by having their lighting, cooking, and other energy needs met in an eco-friendly way. The reduction of drudgery between many rural women and girls who travel long distances to collect fuel wood and cook in smoky kitchens, the reduction of the risk of developing lung and eye diseases, the creation of employment at the village level, and ultimately the rise in the standard of living and creation of opportunities for economic activities at the local levels are just a few of the social and economic benefits.

 The National Institute of Solar Energy has assessed the Country’s solar potential of about 748 GW assuming 3% of the waste land area to be covered by Solar PV modules. Solar energy has taken a central place in India's National Action Plan on Climate Change with the National Solar Mission as one of the key Missions. The National Solar Mission (NSM) was launched on 11th January, 2010. NSM is a major initiative of the Government of India with active participation from States to promote ecological sustainable growth while addressing India’s energy security challenges. It will also constitute a major contribution by India to the global effort to meet the challenges of climate change. The Mission’s objective is to establish India as a global leader in solar energy by creating the policy conditions for solar technology diffusion across the country as quickly as possible. The Mission targets installing 100 GW grid-connected solar power plants by the year 2022. This is in line with India’s Intended Nationally Determined Contributions(INDCs) target to achieve about 40 percent cumulative electric power installed capacity from non-fossil fuel based energy resources and to reduce the emission intensity of its GDP by 33 to 35 percent from 2005 level by 2030.

The Government of India has introduced a number of programmes to promote the production of solar power in the nation in order to meet the the above goals, including the solar park program, VGF programs, CPSU program, Defense program, Canal Bank & Canal Top program, bundling program, and grid connected solar rooftop scheme, and the MNRE subsidy schemes for the residence.

India currently ranks fourth globally in the deployment of solar PV as of the end of 2021. As of the 30th of November 2022, the installed capacity of solar energy was approximately 61.97 GW. India's solar tariffs are currently extremely competitive and have reached grid parity.