Solar Energy – Targeting 100 GW: A situation of Quagmire


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Current Solution

  • Enhancing Battery Storage System
  • Increasing Quality of Solar Inverter (Smart Inverters)
  • Increasing bilateral banking arrangement with states

Solar energy Sector

In the prelude to the Paris agreement signed in 2016. India has aggressive strides towards the renewable energy sector, with the introduction of the target of achieving 175 GW capacity by the year 2020. But Out of 175 GW, 100 GW will be contributed by only solar Generation. As a result of that India has added about 26000 MW of solar generation with an increase of 581%. Still, the target of achieving 100 GW is a farfetched thing. With less than one and a half years remaining. India has installed a capacity 65 GW amidst the lockdown(Changing Energy landscape).


Challenges Ahead

India’s solar energy sector is mostly dependent upon import from China, with 85-90% of Solar equipment are being imported from China.

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India was one of the largest exporters of the best-in-class modules until 2011, with domestic manufacturers,
including Bhel, Tata Solar, Moser Baer, Indosolar and Lanco, pioneering the industry. However, the lack of a
consistent government policy and financial support to match the scale, quality and low price of Chinese imports,
have undercut the growth of India’s solar technology and manufacturing. An aggressive strategy for long-term
development of the industry in line with the National Solar Mission that addresses price competitiveness,
profitability, feasible finance and capacity gaps is an immediate imperative.

While India’s annual demand for Solar Energy manufacturing is 20 GW, its current average annual capacity
is just 3 GW. Therefore, any further delay in domestic solar manufacturing and production will have
severe ramifications for the country’s energy security and economy.

In FY 2019, India imported solar equipment worth approximately 888 Cr from China, which is approximately 85% of total import.

Government of India decision to increase import by 20%: After effect on the Target 100 GW Solar Energy

GOI has planned to impose a 20% Customs Duty (BCD) on solar modules, solar cells and solar inverters from August, Citing growing tension at the borders with China and with a view to discourage imports from China. Now solar equipment importers have to pay a 15 per cent safeguard duty (SGD), which is set to expire on July 29, 2020.


This decision may derail the ongoing project. It is still not clear for the orders which are already Placed. An increase in BCD may result in increase project cost, This may result in curtailment of much-required investment in the sector.

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Secondly, Whether indigenous manufacturing is strengthening to meet our demands. Nonetheless, This may prove to be a well-taken decision in long term. Albeit the Decision may prove to be a major blow to “Target 100 “.

Raushan Kumar
A Cook, Software analyst & Blogger.


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