Sun shines on solar PV industry | Business Line

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Sun shines on solar PV industry

V. Rishi Kumar

Bettina Weiss, President, SEMI India

The viability of photovoltaic projects, from a purely financial viewpoint, has been established PRESIDENT, SEMI

The solar photovoltaic industry is passing through a phase of consolidation. It has l drop in demand and fall in prices. This phase will continue before the sector gathers mom

For all the buzz, however, the pace of implementation in India leaves much to be desi Mission has kicked up some action, the rooftop solar implementation programme has be some States have got cracking, others are still in the process of working out modalit solar PV units.

Bettina Weiss, President of SEMI (Semiconductor Equipment and Materials Interna in the field for over 40 years and oversees the global PV Group, says solar PV instal steer clear of purely cost-based considerations in selecting technology, components a developers must be careful not to compromise on quality in the rush for lowest bids.T PV generation must be based on the sale of power, and not on financial delivery mecha Line Excerpts from the interview:

The price of solar PV installation has come down. From Rs 18 per unit, it is no 6.50-7 per unit. Are we close to grid parity?

This reduction has been due to a combination of factors: supply-demand dyn

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competitive pressure as well as reductions in the cost of PV power generation through technological innovations, economies of scale and efficiency improv

Grid parity is best understood as a band rather than a single point. Worldw achieved first in those areas that have a combination of abundant sunshine a grid electricity prices. In the United States, for example, Hawaii and large po California are at wholesale grid parity and residential and commercial solar m parity in much of northern California.

In India, in certain applications such as urban rooftop PV, especially at the hi consumption spectrum, solar PV is already very close to parity. Power from d consumer Rs 12 to Rs 15 per kWh, and contains a built-in subsidy component price of gas and imported-coal based thermal power are also on a rapidly risi factoring in environmental costs. So the case for solar PV is very compelling i ranging from urban situations to telecom and captive generation. Banks seem to be wary of funding solar units?

With respect to PV power projects, we believe progress has been made. In 20 Solar Mission, there were many misgivings about financing of projects, bank agreements (PPAs), flow of payments and so on.

However, India has made the journey to 1.5 GW (1500 MW) of grid-connected

Overseas financing has played a role and domestic banks have seen that on ea projects are a viable proposition. Leading developers are building projects of India today. The viability of PV projects, from a purely financial viewpoint, w established.

Most module and (the few) cell manufacturers have had to restructure their b implementing projects to sustain their production or are operating well below even exited manufacturing entirely.

Most projections suggest that PV module sales revenue recovery will begin in steadily from there on.

Strong market drivers such as national and State policies, rooftop policies, th certification (REC) mechanism, enforcement of renewable purchase obligatio off-grid market will open opportunities again for domestic manufacturers.

Once businesses see recovery in demand there could be renewed interest in e manufacturing activity. This would make financing of manufacturing units co

In the backdrop of general slowdown in the global market, how do you see In

Solar PV demand in India will keep growing across all segments off-grid, m grid connected MW scale in rural, urban and commercial markets. It will b market for PV products, components, systems and services. Innovative soluti electrical appliances, pump sets, power electronics and mounting/tracking st huge localised demand. How does one accelerate the growth of solar PV units in the country?
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Key demand drivers such as enforcement of RPOs, financial restructuring of enablement of the entry of independent power projects under the REC mecha net metering to support rooftop PV with self-consumption, incentives for th of diesel for power back-up and irrigation pump sets are just a few of many m the market.

Against the backdrop of dumping concerns, local units seem to be facing the h this?

India needs a large capacity, fully integrated domestic manufacturing capabil modules and systems) to innovate on price, quality and performance and bec buyers. Costs seem to be high for individuals wanting to set up rooftop units.

For a variety of reasons rooftop PV systems are very suitable for India. An an versus grid power tariffs shows that at the higher end of the consumption sca kWh per month) its costs are already almost at parity levels in some cities an

With further reduction in prices of PV installations, rooftop units will achiev segments of urban consumers. Capital subsidies have also been announced in Tamil Nadu, AP) to expand adoption.

Reports suggest that India will reach between 2GW and 5GW of rooftop photo installations in the next 3 to 4 years making RTPV a major market driver.

What is your expectation in terms of solar PV energy installation growth in th

We see solar PV growing across all segments and applications in the country. headroom for PV, given the power deficient situation and inaccessibility of th can surpass the 20 GW figure called out in the National Solar Mission many t have market and policy visibility, continuity and regulatory enablement.

There is also a need to couple this with the development of a robust, complete manufacturing ecosystem encompassing materials, wafers, cells, modules an great opportunity to deliver superb price, performance, quality and reliabilit PV manufacturing.
(This article was published on July 10, 2013)

Keywords: solar photovoltaic industry, National Solar Mission, Bettina Weiss certification, rooftop photovoltaic

Printable version | Jul 12, 2013 10:34:02 AM | http://www.thehindubusinessline.com/op /article4902

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