Currently, there is little solar power production in India, a large sunny country, but that’s about to change. On average, the country has 300 sunny days per year and receives hourly radiation of 200 megawatts per square kilometer. By 2022, India’s National Solar Mission hopes to install 22 gigawatts of solar power production capability, which is about 5 percent of the total current US demand for electricity, and make it as cheap as conventional power. To spur this development, over the next few years the program is offering feed-in tariffs, that is, assured market prices, for produced solar power, reports the staff at GreenTechSolar, a branch of GreenTechMedia. Initially, the assured market price of 44 cents per kilowatt-hour of solar power attracted so many bids by interested companies that the government lowered its rate subsequently. And that made the solar policy of Gujarat, an Indian state, competitive, attracting businesses to its assured market price of 33 cents per kilowatt-hour for much smaller, megawatt projects. By comparison, the US has no similar national policy and is being outcompeted in the solar tech industry by China.
A Tale of Two Markets: How National and State Incentives Are Spurring Solar in India
GTM Research and Bridge to India examine India’s National Solar Mission and the state of Gujarat’s Solar Policy.